Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I will read the note in a moment. One of the measures we are ensuring in this budget is that we are not hollowing out the tax base. In fact, the opposite is the case. We had Sinn Féin complaining on Second Stage about the raising of stamp duty back to 6%. The 2% rate is the emergency rate, the war time rate. The 6% rate is the normalised rate. It was 9%, and I believe on one occasion it was as high as 11%, so we are bringing those figures back to normalised rates. Everything we are doing is to ensure we have a balanced budget and that everything we do now and in the future is balanced and sustainable.

There was quite a debate in the other House and within the Department of Finance on the hospitality rate.However, the Senator will be pleased that, because of rural Ireland, uncertainty about the hospitality rate and Brexit, we decided it was right to leave it. At some stage in the future, it will come back in. I am not saying when but we are absolutely not hollowing out the tax base.

The Senator is incorrect in her point about the sum of €10 million. That is what we believe will be the cost. In 2018, the cost will be nil, albeit there will be a figure relating to establishment but it will take time for people to get into the structure. People will have to go in, purchase the shares at the value and hold on to them. In effect, they will take them in lieu of payment. The €10 million cost is the difference between the 33% they pay on exit and the standard higher tax rate.