Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I thank our guests for appearing before the committee and making its presentation, some of which I strongly agree with and some of which I disagree with. We have to remind ourselves of the position we were in, and still are in, with regard to debt. Effectively, we are beneficiaries of whatever criteria prevail worldwide. I recognise and fully accept the distinction drawn between public and private debt and public and private debt funders, which is the important issue. I strongly agree with the need for international acceptance of parliamentary oversight, but it has to be done globally. There is no sense in a situation in which one country decides to enforce this while other countries do whatever they wish.

On the issue of international taxation justice, we need to recognise that we have been singled out unfairly by some people who could ill afford to comment internationally in regard to the effect the double Irish arrangement has had. One international tycoon was very disparaging of our position and the benefits arising from the use of what they call the double Irish. It goes without saying that many other European countries have the same benefits as Ireland, except under different headings. This relates to our corporation profits tax of 12.5%. Other countries have equally attractive concessions to foreign direct investment.

It has to be recognised that manufacturing in this country is subject to a 12.5% corporation profit tax. That is how it stands; there may be an 0.5% concession apart from that. Other countries go well below that level. The issue is with regard to profits generated in third countries that can be re-routed through other countries. Why should the emphasis not be on the countries from where that profit is being re-routed to try to ensure they charge a decent level, for two reasons? One is that there may or may not be a democratic process applicable in that country, and the second is that a huge amount of the profits may go to individuals in those countries and, as a result, they could be major beneficiaries of the regime that applies internationally.

For instance, one could have a situation whereby companies could have their US profits taxed in the United States, a country that invests in this country and many other European countries. When re-routing through another European country, they could have their profits taxed in the country from whence the profits come originally. They could have their corporation profit taxed in a way that is similar to the system applicable in this country, in which case there would not be a problem. It is unfair to label the Irish system as being in some way uniquely culpable in this kind of situation. It is not.