Oireachtas Joint and Select Committees

Tuesday, 24 January 2017

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

EU Corporate Taxation and Investment and Growth Strategies: Commissioner for Economic and Financial Affairs, Taxation and Customs

1:00 pm

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

Can I take the Commissioner up on the point that he is in a country which is pro-European? Yes, I am pro-European, but what kind of a Europe am I supportive of? That is the question that I now ask. Many people in Ireland ask the same question because of what happened to us with the collapse of the banking system and because of the way that the country and the Government of that time were treated by the European Union. In my opinion we did not get support from Europe. It has placed quite a number of question marks in the minds of the citizens of Ireland.

Europe has been attacking our corporate taxation structure or questioning that structure for many years and, in my opinion, the Commission is again not listening to Ireland. Perhaps it is that fact, that it does not listen, that may very well have been the cause of Brexit. Have we learned nothing from Britain now wanting to leave the European Union? It is clear from the considered opinions that the Commission has received from a number of member states that they do not want, or are sceptical of, the proposals being put forward.

There is a tax war going on. That tax war, in terms of Ireland's position, is because other European countries envy the structure we have here and how we deal with the companies that come and settle here. This not about people not paying their fair share of tax. This is about Ireland as a small country, competing in a Europe that seems to be centred on the big member states and is failing to understand the smaller member states; this is my view as a pro-European. I think that it would be far better to address issues affecting the quality of the lives of the citizens of this country and of other member states rather than embark upon a mission, which it was clear to me from the very beginning, is flawed. Other member states, having given their considered opinion, hold the same view. It is at a time after Brexit, and after Trump, that we need to be building a European Union that effectively reflects the views of its people and does what every government should do, that is, protect the people it represents.

To my mind, this proposal does not do that. If anything, it crystallises for me the unlistening ear of Europe and the misunderstanding that exists around taxation, and the impact that this proposal would have on our country. While Mr. Moscovici will robustly defend the Commission's proposal, it is up to Ireland and other states who feel likewise to robustly defend their position. The starting base should be one of understanding.

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