Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

The US Bureau of Economic Analysis stated American corporations based here made a profit of $970,000 and paid $25,000 in tax per employee per year, which is a phenomenally low effective corporation tax rate of approximately 2.5%. We can contrast this with the figure for citizens in County Wicklow, whom the Minister of State represents, who pay a tax rate of 40%. They will not have a knowledge development box or any other tax loophole. Ireland has been a leader in competition on corporation tax rates. It is a central element of our international economic attractiveness. Competition in corporation tax rates robs the citizen and locates the profits in the hands of the corporations. Over time, it erodes the tax base and transfers money to corporations. Around the world countries are losing corporation tax, given that they are forced to reduce their corporation tax rates as a result of a very negative competition that Ireland is leading.

Some 50% of the planet's wealth is owned by 1% of the population. This extremely unequal distribution of wealth is being driven by a number of very large corporations which are making massive profits, on which they are not being taxed, while citizens are being taxed. The Government, instead of having a big flashing neon light over the State stating “bargain basement corporation taxes, please come in”, must invest more in education and show it has a smarter, better educated citizenry than any other country. We must say we have a broadband system that will beat anybody’s such that events such as the Web Summit will not have to leave. We must say we have a transport infrastructure in which, if an accident takes place on the Lucan bypass or the M50, the whole of the Dublin region’s transport network will not be snarled up.

Paul Krugman has carried out analysis which shows that the sunshine states of America are experiencing more growth owing to the fact that their house prices are far lower than in New York and other centres. Deputy Richard Boyd Barrett is correct. When a company such as PayPal asks its staff if they have spare rooms to provide accommodation for potential workers in the company, it is clear that our infrastructure is snarled up. We have reached capacity in areas that should be competitive advantages for the country. The level of the Government's investment will decrease between now and 2020, according to the figures included in the spring statement. We are at the bottom of the list when it comes to Government investment in these areas, which means that our competitive advantage will weaken and become more located in bargain basement corporation tax rates. There is no doubt in my mind that the knowledge development box is part of it. We have been forced down this route owing to the lack of Government investment.