Oireachtas Joint and Select Committees

Thursday, 20 October 2016

Joint Oireachtas Committee on European Union Affairs

State of the Union 2016: European Commissioner for Agriculture and Rural Development

12:00 pm

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

I welcome the Commissioner and his colleagues. He has given a forthright assessment of the scene that is unfolding before us all in Europe and, in particular, its implications for this country and the UK. He is correct in his conclusion that the best thing that can happen in respect of Brexit is that it does not happen. Unfortunately, we all have underestimated the impact if it should take place. More details in this regard are likely to emerge in the coming months, none of them positive. I do not see how there can be a better situation for Ireland, North and South, for Ireland Inc., for the UK and for the European Union itself in the wake of the departure of the UK. There has been no reference today to the degree to which the Union may be damaged by one country jumping overboard for whatever reason. I strongly concur with the reference by my colleague, Deputy Brophy, to the politicisation of the European Commission. This goes back to the decision to have a single Commissioner for each member state, something that was very much sought by this country. I was one of those who strongly opposed that development, my view being that the 15 Commissioners should be representative of the entire Union, each directly and equally accountable to all member states. Together with the increased powers for the European Parliament, that development represents a huge threat to the position of smaller countries within the Union.

I do not like being lectured to by Members of the European Parliament on what we in this country should do about our taxation policy. We are an independent country which has always adhered to and contributed to the European project. When I see people clicking their fingers and admonishing us for allegedly departing from the script in a way that is inconsistent with the European concept, I ask myself who they are to raise these questions and whether they are qualified to do so.

Have they a record that is sufficient to convince us that they are to be taken seriously? I refer, in particular, to Members of the European Parliament who have opined that there can be only one outcome to the so-called Apple tax issue, namely, that Ireland will lose. One presumes the honourable and enlightened MEPs also have access to the judges at the European courts. I do not think so and I reject and resent being treated this way by anybody in any position of authority.

The question of common consolidated corporate tax base, CCCTB, has been referred to. I am not alone in thinking that there is a concerted effort to punish our country for having a 12.5% corporation tax. It is appalling to see representatives of this country denigrating their homeland on the international stage. There are plenty of other people willing to do so. There is no need for our own people to do it. They can make a trade of it and it is good press for them but it does not do Ireland Inc. any good. Why is there such resentment? We all know profits earned in other member states and non-EU states are included in the totality of what is levelled against Ireland. Ireland is allegedly being given the responsibility for collecting taxes on profits earned in other jurisdictions. Ireland has no function in this area and the EU does not have the authority to tell us that we do.

I completely agree with the positive points the Commissioner made. There are other negative aspects, however. Some years ago, an insurance company came to this jurisdiction. It was registered in another European country. It left in a hurry with unpaid debts which must be carried by the motoring public here. As far as I am aware, nobody admonished the company. I see no sign of it from any quarter. Some years ago, and prior to the end of the boom, certain banks introduced themselves to this jurisdiction. They traded profitably but undermined the Irish banking system. Afterwards, they walked away, back to their home jurisdictions and nobody admonished them. It is unfair and undemocratic that Ireland, as a small country which has always contributed to the European project, should be treated in this fashion.

I have spoken about migration before. The saddest emblem of the EU's response to migration was the razor wire that was seen to be the iconic response to the refugees who were swarming across the borders. They were running away from something which was not happiness, health and good fortune. While the EU, as an entity, did not do this, individual member states - by virtue of their influence and geographic position - influenced it. It is an everlasting image of the EU's attitude to something to which it should have taken a totally different attitude by virtue of its own history. I hope there is the will to change all those things. The question for the future is whether we have free trade, the Single Market, common trade over a wide area or return to the days of tariffs. If we return to trade tariffs, which some people would have us believe are the answer to our prayers and problems, the smaller countries, again, unfortunately, will suffer heavily.

I am sorry for going on for so long. I remain totally committed to everything the EU sought to achieve over the years. I have become a little cynical in recent times that we tend to lose the sight of the target and go down side roads, much to the detriment of the European project.

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