Oireachtas Joint and Select Committees

Thursday, 28 November 2019

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

Impact of Brexit on Ireland's Economy: Economic and Social Research Institute

Photo of Gerry HorkanGerry Horkan (Fianna Fail) | Oireachtas source

When I was growing up, I watched the famous Jacob's advertisement about how to get the figs into the fig rolls. I never thought I would end up discussing it at an Oireachtas committee meeting. Now I am in the Chair discussing the complicated process of making fig rolls in the context of Brexit.

The UK has made a big fuss about its intention to cut its corporation tax rate to bring in lots of industry. Is it not fair to say that access is a significant factor for a company when it is deciding to locate in a country in the EU or in the European region generally? I ask the witnesses not to misunderstand me because I am aware of the importance of our corporation tax rate as part of a suite of measures. We have other disadvantages that mean we need our corporation tax rate. Access to the Single Market means access to the 430 million people who will be living in the EU if the UK leaves the Union. Surely it would be relatively unattractive for a company to leave the EU to go to the UK to avail of a lower rate of corporation tax, given that it would mean facing various barriers, tariffs and charges. Is that a fair point? Mr. Johnson and others have said that by cutting corporation tax, they will attract a great deal of industry to the UK from other European countries. Do the witnesses envisage that this will happen?

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