Jim O'Callaghan (Dublin Bay South, Fianna Fail) | Oireachtas source

I thank the Minister for coming before us. I am slightly concerned about the narrative developing in the public domain and in some elements of politics with regard to foreign direct investment and our corporation tax policy. We recognise that President Biden is going to be a very consequential president in the United States. The reason this issue is being discussed now is that he has put forward a $2 trillion infrastructure project and scheme, for which he needs to pay. In order to improve the quality of life of American citizens, he is proposing to increase the corporation tax rate in the United States to 28%. In the same way, the Irish Government is entitled to make policy decisions in respect of taxation which it believes are in the best interests of the Irish public. That is why it is important that the Minister, the Government and others in Irish political and public life emphasise the very strong advantage and benefits the country has received as a result of foreign direct investment and our corporation tax policy. We have high taxes in other areas in Ireland. We made a conscious decision to have a low corporation tax rate of 12.5% because we wanted to attract foreign direct investment. That is why we have 1,600 foreign firms working in Ireland today. We wanted it to provide employment. That is why 250,000 people are employed as a result of foreign direct investment today. We wanted to get money from corporation tax. That is why we received €11.8 billion in Exchequer returns last year.

I am interested in hearing the Ministers comments in this regard. Obviously, President Biden will try to get the legislature in America to change the law there, but he cannot impose an international consensus. I hear what the Minister is saying in respect of the OECD. Does he agree with me that it is important that Irish politicians and people in Irish public life who are concerned about the economy emphasise the benefits of foreign direct investment and that part of the reason these firms have come here is our consistent low corporation tax rate?