Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

-----a sentiment I believe is shared by the vast majority of Deputies in this House. Even though this commitment has been stated numerous times, it is worth repeating so that there can be no doubt.

Ireland has for the past 50 years sought to have a competitive corporate tax strategy to attract job-rich foreign direct investment into Ireland. Our policies in respect of tax co-operation and international exchange of tax information have always earned international respect.

It is in this context that I am very pleased to announce today that Ireland has become one of the first countries in the world to agree a new intergovernmental agreement with the United States in respect of the US Foreign Account Tax Compliance Act, commonly known as FATCA.

Reaching such an early agreement with the United States will be of great benefit to Irish business.

Conclusion

When I stood before the House last year on 6 December, the Government was locked out of bond markets. Our two-year bond yields were almost 10%; now they are less than 2%. We have seen a total transformation in only 12 months. Today, markets and foreign lenders are lending once more to Ireland and are willing to lend to Irish businesses. That is essential for our businesses and our economy to continue on the path to recovery.

Confidence is returning to Ireland. Unemployment fell by 3,600 on an annual basis in the third quarter of this year - the first year-on-year fall recorded since 2005. The Manufacturing Purchasing Managers' Index shows that Ireland is the only country in the euro area to record an expansion – the ninth consecutive month of expansion. Retail sales have recorded strong growth in recent months. Services exports are running at double-digit growth. In five of the past six months, consumer sentiment has risen.

When this budget is implemented, most of the tax consolidation committed to by the Government will have been completed and even though the revenue target for 2014 is €1.1 billion the carry-over effect of today’s measures reduces that to approximately €500 million. In 2015 the carry-over effects will reduce the programme target of €700 million to a similar level. People have asked me to point the way forward. They have asked whether harsh budgets will ever end. When we are here next year, please God, the tax take will be approximately €500 million, not over €1 billion as in previous years and the tax take the following year will be a similar amount.

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