Mairead Farrell (Galway West, Sinn Fein) | Oireachtas source

Gabhaim buíochas leis na finnéithe as teacht os comhair an choiste seo. Ar ndóigh, tá sé fíorshuimiúil, mar is gnách.

I note Mr. Barnes stated that if just five firms were to exit the market, the State could see €3 billion in yearly corporation tax receipts being lost. As I said, I have raised these concerns with the two relevant Ministers. I have also mentioned the need to begin planning for an alternative industrial strategy, given the coming expiration of the current one. IFAC has also raised concerns about spending and the need to reduce the deficit and try to reach a balanced budget.

I agree with the witnesses on the risks to our low corporate tax model. Surely transitioning from our corporate tax-based model to one based on creating a high value-added sector would require greater public investment and State involvement in the economy. The same goes for reaching our climate targets. We need to be prepared for the eventuality of an impact on our corporate tax receipts. If we accept, based on that analysis, that FDI growth might decline as a result of international tax regime changes, then we need to be prepared. The State would need to grow its own. Focusing solely on balancing the budget at a time when corporate tax receipts could be falling might lead to the worst of all worlds. Is there not an argument to be made that we need to invest now and ensure we place our tax base on a more secure, long-term footing? Would it not be a more prudent course of action to invest and ensure we have an alternative strategy, in case we need it?