Lower taxes brought extra money to the Exchequer, the Tanaiste Ms Harney said yesterday, explaining her determination to cut taxes across the board.

Attending the announcement of a £20 million (€25 million) expansion programme at Showerings in Clonmel, Co Tipperary, Ms Harney said it was a "statistical fact" that where rates had been reduced the result had been increased revenue for the Exchequer.

She assured the managing director of Showerings, Mr Brendan McGuinness, that she believed further reductions in taxation were necessary.

Mr McGuinness had raised the issue with the Tanaiste at a meeting earlier, in which he particularly appealed for recognition that cider production was a "truly indigenous", labour-intensive industry.

"This is a very important factor which must be borne in mind by the Government when it's determining tax and duty levels," he said following the meeting.

"The competitive position of cider must not be allowed to be jeopardised by any changes to taxation levels which could have an adverse impact on cider retail prices compared to other drinks categories."

Ms Harney said her views on tax were well known, and she was "for taxes coming down full stop".

She was aware that "if we were to get rid of all the taxes on drink, you'd be able to buy a pint of whatever . . . for probably less than a pound. I'm not saying we're going to do that but it is extraordinary the level of tax there is across the economy." She pointed out that the yield from capital gains and betting tax had both increased when rates were reduced.

And while Ireland had the lowest rate of tax on corporation profits in the EU, corporations in Ireland contributed 12 per cent of the total tax take compared to an EU average of 5 per cent.

Yesterday's announcement is the latest in a series of investment programmes undertaken recently by the company, which makes Bulmers cider.

A £20 million expansion at Clonmel was completed last year while a £12 million upgrade of its Ballygowan plant in Newcastle West continues.

The expansion announced yesterday, which will bring the total investment in recent times to £52 million, will include a doubling of its existing bottling line at Clonmel, an increase in warehousing and an extension to its recently-built apple processing facility.

About 30 jobs will be created at the plant which already employs 470 full-time staff.