Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I thank the delegates for attending. I thank the ambassador, Ms Emmanuelle d'Achon, and her deputy, who maintain regular contact with the committee. They are outstanding. There is a good relationship between the Oireachtas and France.

For a long time I have advocated a much closer relationship between Ireland and France and between Ireland and Germany. We have been successful and have started to build a closer relationship at parliamentary level with Ms d'Achon and the German ambassador. We often use the opportunity in the Houses of the Oireachtas to criticise what we perceive to be the misunderstanding of our economic and tax situation and we do so in the expectation that somehow people will be listening to what we say. Of course, when one considers the detail, one appreciates that other countries have other things to deal with. It is important to have more regular dialogue similar to this, and also through COSAC, which has been helpful. If we have learned anything from the recent crisis, it is the importance of ensuring that the individual member states understand the conditions and concerns and the framework in which other parliamentarians have to work.

That brings me to the point the Chairman wants me to address, the financial transaction tax. I am a member of the main Opposition party but, notwithstanding that, I share the views of my colleague, Deputy Durkan. We have a similar view that the introduction of a financial transaction tax can only be done on a worldwide basis. The mobility of investment capital is such that we cannot expect it to reside within the borders of Europe or the EEA. It would be foolhardy if a number of countries in Europe or indeed Europe generally were to proceed on that basis. It must be done on a global basis. The G20 is the forum in which to try to seek a level of consensus. However, I support in principle the concept of a financial transaction tax, which does provide a considerable opportunity to generate significant revenues for the State.

We have been critical in the past of positions taken by some politicians in France on their perception of Ireland's low corporate tax rate. As my colleague has said, what you see is what you get, and the 12.5% rate of corporation tax is applied across the board. There are very few opportunities, through the provision of tax credits, to reduce that further. Studies and comparative analysis have been done across member states and by no measure does Ireland apply the lowest effective corporate tax rate. That is a misapprehension that is worth exposing.

I know the common consolidated tax base is an issue of particular concern for our delegation. We as a State have indicated our willingness to participate in that discussion.

This willingness should not be taken as an acceptance of a positive outcome from our perspective in supporting that principle. I know this may be at variance with the French position on that matter. We do not see it as helpful from our point of view.

We attract considerable foreign direct investment, not only for tax reasons. We are an English speaking nation, with a good base for providing onward capacity for American companies to target the European market. We want to protect this investment.

To turn to the European project, considerable damage has been done to the notion of the Community method of dealing with issues and crises and building and developing for the future. While I do not wish to be political or overly critical, the holding of bilateral meetings on a Sunday afternoon, week in and week out, during the term of President Sarkozy damaged, albeit not irreparably, the notion of a Community where it was important for smaller states to be treated as equal participants. Unfortunately, the Franco-German discussion appeared to be the focus in resolving issues as they arose. This sidelined the Commission and damaged its role. We have work to do to re-establish the authority of the Commission, the composition of which ensures equality. Its role is not only to keep the system pure. It is important in retaining the engagement of citizens of all member states. The delegates will be aware that Ireland has found it necessary to hold a second referendum on a number of occasions. Many people outside Ireland who believe the country has benefited from its relationship with the European Union, as it has, asked why Irish citizens did not share their view. Efforts to deal with the crisis at a bilateral level alienated citizens in many countries. As parliamentarians, we have a role to play in addressing this issue. We must do so in a collective way, with parliamentarians from other member states, to try to ensure the Community method is re-established. Europe is predominately made up of smaller states which must believe they have access and influence and are part of a developing European Union.