Mr. Brian Hayes:

We were asked two questions, the first of which was whether things are changing. They are changing and the evidence from BEPS is that it has made a difference. We are trying to assess as a consequence of the 13 actions so far how much extra has been brought in. Irish corporate tax receipts are a bit frothy and we need to be concerned about their sustainability. Of our total tax pie, 15% of tax receipts are the corporates whereas the OECD average is 8%. For every man, woman and child, the corporates pay €1,700 whereas in Germany it is €600 and in France it is €700. We depend on this. If it is knocked out by €1 billion, it is a major problem no matter who is in government.

The international environment has actually helped us to get more money in as more money is brought onshore. An interesting point I raised recently with President Draghi is on the changes brought about in the USA recently. One of President Trump's few achievements domestically has involved the tax changes implemented from 1 January 2018. We will not see their full effect until next year's reporting period. There will be two effects. First, a huge amount of money will be brought onshore to the United States of America to take the credit of this redistributive tax rate. That will prolong the US economy's comeback. It will be a significant tax return, as we are already hearing in the USA. Second, significant holes will be left in eurozone banks as a consequence of the money coming onshore to the USA. The ECB admits that it has yet to see the full implication of that. In this world of tax changes, it is not just at OECD level, it is also within the European Union and the USA.

I reject the notion that Ireland has tax haven status, obviously. However, I get the point that Mr. Carthy makes, which is about what other people think. I want to be the first to admit honestly that there was significant reputational damage done to Ireland as a consequence of the Apple case. Those of us who work in the institutions can testify to that. People do not fully understand the context of these things and they do not understand the arms-length principle of the OECD and how it is applied by our Revenue. All of these issues will be worked out. Nevertheless, significant reputational damage was done to Ireland as a consequence of that decision. That is not to say significant improvements were not made when Deputy Burton and others were in government in closing down the double Irish, establishing the FATCA arrangement and changing residency rules. All of those things are very important. We have a legacy issue here which is hard to explain and we can point to a very significant tax take on the corporate side as evidence of the fact that corporates pay their fair share in Ireland.

For Europe to remain strong, we must always be welcoming to investment. Very significant international players from outside the European Union, that is from third countries, operate within the EU, including its peripheral regions. I can keep making the point that Apple employs 6,000 people in Ireland. These are real people doing real jobs in real communities and paying real mortgages. They are ordinary people and our Irish people. We have a collective responsibility to defend a model of industrial development which has been very successful for Ireland, produces genuine goods and services and real value added across the European Union. A lot of people are jealous of that success. We did not have an industrial revolution and we did not have colonies. We were colonised. The idea that everyone is the same on day 1 is not the case. We had to do things differently because of that model. Of course, the model will adapt and change as it must as things move up the value chain. However, in trying to rebut some of these arguments, we must point to our successes also. I am very conscious of that.