Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy knows, we have invested a lot as a Government in the OECD process, which the Minister, Deputy Donohoe, was very much involved in negotiating and helped to shape. That was a very significant moment for Ireland because the 12.5% rate has been a bedrock of our industrial policy for a significant number of years, but we made the decision to be part of a global deal to provide certainty about our offering in the future, recognising the reality of digitalisation and the need for a change in the way in which corporate profits are taxed globally.

Our focus now is on the implementation of that OECD base erosion and profit shifting, BEPS, agreement. Those members who serve on the Select Committee on Finance will see in a number of weeks, when I bring forward the finance Bill, the complexity and the length of the provisions required in law to transpose pillar 2 of that agreement in the form of the EU minimum tax directive. Our focus in respect of corporate tax is very much on that issue. That does mean that, given that we are increasing the rate for the largest companies, that is, those with turnover in excess of €750 million, we have to see what more we can do to ensure that our offering remains competitive. That involves looking at the different levers and options we have in that regard and modernising other aspects of our corporate tax system.

While the participation exemption might not make the news headlines, it is an important policy initiative we have taken in recent weeks that will help to bring Ireland into line with most other developed economies in adopting aspects of a territorial tax system as opposed to a worldwide basis. That is an important reform. We are planning other reforms over the period ahead to ensure we continue to renew and refresh the offering to the foreign direct investment community in order that we remain competitive. The Deputy mentioned our competitors. The Minister, Deputy Donohoe, and I and the Government get daily reminders of the level and intensity of the competition that is there. We should never take for granted the success we have had so far in winning international investment. It is a very competitive environment out there and the Government will continue to refresh and improve on the offering where we see opportunities to do so.