Bertie Ahern (Dublin Central, Fianna Fail)

As for any breaches, our revenue laws are as tough as anywhere in the organised world. Every country has its own tax laws and the Revenue Commissioners have all of the powers granted by this House and many issues over the years have strengthened that position.

I have no involvement in, nor can I comment on, the tax affairs of either individual companies or State bodies in respect of their dealings with the Revenue Commissioners. Revenue does not comment either. However, all companies, including commercial semi-State companies, are entitled to organise their tax affairs in an efficient and legal manner to minimise the amount of tax payable. This is the manner in which commercial companies operate throughout the world. Our taxes are no longer the lowest in respect of corporation tax as some European Union member states have zero taxes. Elsewhere, countries, such as Singapore that has a zero rate, are probably receiving most of the foreign direct investment nowadays. Other countries have tax efficient mechanisms whereby they have higher headline tax rates but then do deals with major companies and multinationals. This is the order of the day.

The position of the Department of Finance is set out in the code of practice in respect of the governance of State companies. State companies are obliged to follow that code and it is a matter for the authorities to pursue any that do not so do. I am aware the Deputy has taken his information from the Irish Mail on Sunday, which published an article stating that three State companies, namely, ESB, An Post and Aer Rianta, have avoided corporation tax by moving more than €90 million through the accounts of the Dutch holding companies. This is a matter for the relevant Departments and boards to investigate. I do not have details in this regard.

However, our corporation tax regime is a far more transparent system and method of dealing with tax than is the case in most European countries. An ongoing campaign has run for 20 years about some of our operations. Our financial services regulators and companies are continually watching for anyone who abuses the system. However, Ireland is not alone in using tax efficient ways of doing things. There are tight laws and regulations and, in the case of any breaches, the Central Bank, the Office of the Director of Corporate Enforcement, the Revenue Commissioners and other agencies are designed to try to control them. However, Deputy Higgins should not fall into the trap that is again being revived by those who want to see a harmonised tax system.

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