---

Finance Bill

I am not sure whether to thank the hon. Gentleman or whether his remarks comparing me with my predecessor were even a half-hearted attempt at a compliment, but I will take them at face value and hope that I continue to make the gap bigger in his appreciation. In my experience of advising companies and Governments about how to set up foreign investment regimes, companies consider the headline rate. They do not look at it on its own, and the comments about not considering it in isolation are correct. However, companies consider the direction in which it is going and are prepared to take a punt on that, and to examine other circumstances, such as the simplicity of the tax system. An incredibly complex system will offset some of the advantages of reducing the tax rate. It is therefore right to proceed with simplification. Companies examine the whole complex pattern, but I cannot emphasise enough that the starting point is the one thing that one can always grab hold of—the amount and direction of corporation tax. Earlier remarks about considering the whole package are important, but there must be one guiding figure: the rate of corporation tax. I have done enough of a world tour to my two favourite spots, Canada and Poland. I hope that other hon. Members will consider other countries. As my hon. Friend the Member for Northampton, South (Mr. Binley) said, the middle east is an important area. His comments about attitude, direction, perception and the changes people make are vital because we can be sure that, when the crisis is over, people will not look at the world, or countries' approach to their tax systems, in the same way. They will look for simple tax systems that focus on the nation's priorities and reflect the changes in people's experience when, for example, they examine the amount of debt on the books. I fully endorse the amendment and look forward to the vote on it.