Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I will begin where the Deputy ended, on the international environment and statements by President Trump. I will not comment on initiatives that might be the subject of debate in another political system and country. It will make choices on what it will do. It is very important that we are crystal clear on the nature of our competitiveness and the proposition we offer for attracting and retaining jobs. As a debate is under way in America on change it is even more important that what we offer is predictable, that people know where they stand and that we are confident that corporation tax is an important part of what we competitively offer but it is not all of it. I see that in the engagements I am having with many companies in the post-Brexit world which consider the quality of our workers' education, Ireland or Dublin as a location and access to it, our legal framework, our language and so on. I am confident that, despite the change or potential change taking place in other jurisdictions on these matters, Ireland will continue to have a competitive offering.

In response to the question on the CCCTB, President Macron is entitled to outline his agenda on the future of the eurozone, Europe and France. I am equally entitled to lay out our national interests in those areas. In respect of the broad economic and monetary union, EMU, and the future of the eurozone, I believe it is in the long-term interests of Ireland, particularly given the change happening in other parts of the world, that we have a more stable eurozone that continues to grow in the way it has in recent years. Strengthening the eurozone and monetary union in Europe is in our interests. We believe the key ways to do that will be through the completion of banking and capital union. Capital union matters to Ireland and Europe because most of our investment is bank based. Banking union matters because it creates an environment in which we have greater confidence of regulation and that the split between the sovereign and banking systems will be maintained. In respect of corporation tax policy the current decision-making process will be protected. We believe the principle of unanimity in respect of taxation matters is a core element of how decisions are made on all tax matters, not just corporation tax. That is the stance I have taken recently and will continue to advocate.

In respect of VAT I will not comment on individual taxation matters that I will announce on budget day because the decisions will be made that day and any decisions I make now will have economic consequences for today. I will not go down that path. The Department of Finance has outlined different options on VAT but the decision is for me and the Government to make.

As the Deputy is aware, the vacant site levy is a levy as opposed to a tax and because of that it is a matter that the Minister for Housing, Planning and Local Government, Deputy Murphy, is engaged on at the moment. I am giving him my view on it, that it is a very important measure to change the incentives on land use and I am working with the Minister now on that proposal. He has already outlined some views on it.

One of the first things I said as Minister for Finance, and for Public Expenditure and Reform, was that to be in a situation where our labour market might reach full employment next year, I stress "might" because of the risks the Deputy is aware of, is an important consideration in respect of choices I must make. I will make economic choices only on the basis of what I think is right for the economy overall and the fact that it is growing at the rate it is and that the labour market is improving at the rate it is, are important considerations for me. In respect of child care costs I can see the effect of the changes in child care regulation and provision at a local level in my constituency and the difference it is making. In fairness, however, to the Minister for Children and Youth Affairs, Deputy Zappone, it is very early in the day to say what the long-term effect of that will be because it is a measure that has been implemented for only a few months. I agree with her point that the Government will take further action if needed, if we get to a point where the availability of the subsidy scheme the Government has made available contributes to higher costs because we are trying to get to an affordable and better regulated position.

In response to the Deputy's question on the legal definition of balancing the books, we are legally obliged to follow the European Commission's definition. That is what we are doing and will continue to do. The convergence margin changed because at that point in the year our gross domestic product, GDP, growth was higher than we expected it to be in our original forecasts. The Deputy is referring to a report he received from his independent parliamentary office. I have not seen it nor would I expect to. It is a matter for the Deputy but if there are issues in it that the Deputy wants me to respond to beyond the response I have given I will be delighted to do so.