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

It is US President Biden who is bringing forward these proposals. Irrespective of the impact we will have to deal with, he is the Head of State and Government of the United States. The Deputy referred to him as "Biden", but we should respect the offices other people hold. I do, even though the proposals he is bringing forward will create consequences for us. The election of President Biden is deeply positive for the world and for how we can engage with each other in a co-operative way.

Turning to the substance of the Deputy's question, on the issues relating to CFCs, changes to how we tax hybrid entities and other commitments I have made in respect of changes to aspects of our tax law, I will continue with that because irrespective of the challenges that President Biden's tax proposals may create for us, we will address those challenges in a safer place if we have resolved some of the issues that exist regarding technical parts of our tax law that create opportunities for aggressive tax planning. I will continue with those policy changes.

As for whether we need a new industrial policy, even though the challenges that could be created by the OECD and by changes in US tax policy will be significant challenges for our country, I believe we have the measure of them. Our policy strengths, and the strengths we have with regard to education, the diversity of the economy and the breadth of employers that are now in Ireland, both domestic and international, mean we will be able to overcome these challenges and pursue new opportunities. On the specific tax issue the Deputy mentioned, I will examine, through engaging with the OECD and directly with a number of colleagues in much larger economies, how we can influence an outcome that respects tax sovereignty and the need for small and medium sized economies to be competitive. That is a large project that will take up a large part of this year. I look forward to updating the Deputy and the committee on it.