Simon Harris (Wicklow, Fine Gael) | Oireachtas source

There were a number of contributions in relation to the living cities. We will probably get to that later, Deputy McGrath. We are very confident that we are almost there and the passage of this Bill is important in that regard.

Deputy McGrath is correct that the knowledge box needs European approval. Some 11 countries have a version of it at European level. The UK and Germany have made another proposal, in terms of bringing European clarity to this, which we expect to progress quite swiftly. We are confident that we are going to act within that space. We are going to consult and we are going to do this right. That is important.

One often says that a lot of politics is grandstanding in these Houses. In fairness to Deputy Boyd Barrett, when he actually speaks on this, I know he genuinely and sincerely believes everything he says on it, but I completely disagree with it. I hope he accepts my sincerity in that regard. I disagree with it based on a number of issues. There seems to be at times an implication that he is talking about people's personal wealth or about personal taxation. We are talking about companies that are employing so many people in this country, that are bringing in tax to this country, and that are contributing to communities and to regional development as well when we see them in suburbs and counties right around Ireland. The value of multinationals to the employment number in the Irish economy is that real people with families have a pay packet coming into the home. It is not just me, but Deputies McGrath and Walsh also say that the corporation tax rate is important. Look at the ESRI report, which I think was also published on budget day. It has done a very useful body of work on the effect of increases in corporation tax rate in Ireland. It models various levels of increases and shows the impact this would have on new foreign companies coming to these shores. A figure that sticks out in my mind is that if corporation tax had increased to 22.5%, the ESRI predicts that only 50% of new foreign companies would have opened on these shores.

There is now a body of empirical data. I accept that this work may not have been done in the past. I accept that these debates are useful and are important in that regard, but it irks me when I hear his comments on the Minister for Jobs, Enterprise and Innovation, Deputy Richard Burton, and other Ministers meeting with business owners. It is really important that Deputy Boyd Barrett met with the people on the picket line and engaged with them. This is part of the job. Equally, it is really important that Government Ministers and all of us can engage with other employers as well. There is no difference between engaging with an employer who happens to be working for a multinational, engaging with the IFA, or engaging with a public sector trade union. All of these elements matter and it is important that the Government, whatever its composition, does engage with them. The reason the Government is engaging, and the Deputy referred to the double Irish, is that certainty is vital. We know from IDA Ireland and watching developments in this country that companies make investment decisions over a seven to ten year window . We have to provide them with certainty. Certainty in relation to tax is vital.

Deputy Walsh asked me about the international procedures in place. Obviously, comments have been made by the new President of the European Commission. Ireland is very willing to engage in any sort of transfer and transparency in relation to tax. That has always been the position. Tax work and tax it where it occurs. We are also playing a very proactive role in the OECD BEPS process. Do not just take my word for that. The Minister for Finance, Deputy Noonan, has shown that by moving ahead of the double Irish, having first mover advantage, rather than waiting for an international process to resolve, Ireland has got out ahead, is protecting our international reputation and is bringing certainty.