Brian Cowen (Laois-Offaly, Fianna Fail)

Many of the jobs to which the Deputy refers are not minimum wage jobs but are excellent, well paid jobs. They are being sought by many other countries throughout the world but we have successfully brought them here. Many of them are from expanding Irish companies that are making a bigger impact than ever before in many competitive markets.

I agreed with the points made by the chairman of the American Chamber of Commerce at the function in question which I attended and addressed. We do not reduce other nations' wealth. Our double taxation treaties, agreed with other countries, use well established arm's length principles. The corporation tax regime produces jobs and revenue that supports public services. The revenue has increased by 250%, from €2 billion to €5.5 billion. We have 44 tax treaties in place, a system of full information exchange and a proper regulation of activities to the highest standards. Ireland maintains a low general corporation tax rate by ensuring a wide tax base and careful prudent management of public finances. The 12.5% corporation tax rate is a general rate and is not focused on any particular segment of Irish industry. Our system is deliberately transparent so that all can see the attractions and benefits to the State. Other countries often have high nominal rates of corporation tax, but mask the true lower rate in deductions and deals with individual firms. We do not go that way.

Ireland is bound by the same rules on State aid, code of conduct and rulings of the European Court of Justice as other member states of the EU. We are fully compliant with both the code and the OECD process. We have acted in the past to amend regimes to close down abuses if they arise and we will do so in the future. The tax treatment of cross-border flows is regulated in accordance with double tax treaties agreed with other countries, using well established principles. They are negotiated according to OECD guidelines set down for this purpose. In general teams, Ireland has a comprehensive taxation system covering income, capital and indirect taxes. In recent years, we have concentrated on lowering the burden on enterprise and employment to encourage economic activity.

See this speech in context