asked the Minister for Finance whether, in view of the likely advent of free trade and the urgent necessity to assist and encourage the business community to prepare itself for the increased competition by reinvestment of its profits in modern plant and equipment and to establish adequate financial resources, he will consider introducing a lower rate of taxation on undistributed profits.

The introduction of a lower rate of tax on undistributed profits, apart from its budgetary implications, would not of itself ensure that retained profits are in fact ploughed back or reinvested. In any event, profits ploughed back into a business by the purchase of machinery or plant and the construction of industrial buildings are, through the operation of initial and annual allowances, freed completely from charge.