Dáil debates

Wednesday, 23 April 2008

Twenty-eighth Amendment of the Constitution Bill 2008: Second Stage (Resumed)

 

9:00 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)

It is vital that the people of Ireland vote for the treaty and the reasons to support it are straightforward. The population of the EU is now almost half a billion, which is unwieldy, and this, effectively, is an administrative treaty that seeks to streamline the EU's administrative procedures.

A question in this debate is why should people vote "Yes"? I think the reasons for voting in favour are strong because the EU has been very good for Ireland. Since joining the then EEC in 1973 we have received €60 billion and have given back €20 billion, a sign we have become prosperous and have done well out of Europe. We have received €41 billion through the Common Agricultural Policy and are due to receive another €12 billion up to 2013. We have received €17 billion in Structural and Cohesion Funds. One of the reasons we have done so well, in terms of the Celtic tiger, is the funding from Europe which has allowed us put the infrastructure in place, but more needs to be done. In this context, the Government will have to push forward with the national development plan as quickly as possible.

The EU has contributed to peace in Europe. In the first half of the last century there were two world wars that resulted in the deaths of 40 million people. There have been wars in other areas of Europe since but there has been peace in mainland Europe, which is to be welcomed.

The EU has been a major benefit to Ireland in a number of ways. The Single Market has allowed us to trade throughout Europe and the area I represent, Limerick, has a large multinational base. Multinationals came to Ireland because the country gave them access to European markets through the Single Market. Following on from this, we joined the euro currency and now have common interests throughout Europe. If one sought to pinpoint external factors that contributed significantly to the Celtic tiger, one would be the exchange rate mechanism that reduced anxieties related to exchange rates. Another is the fact that, with the European Central Bank in place, interest rates were extremely low. One of the adverse consequences of this is the current bust that has followed the housing boom. Low interest rates allowed people to borrow a lot of money and the Government should have introduced other factors to prevent a bubble forming.

Some anxieties on the "No" side are emerging in a number of ways. The issue of taxation has arisen recently and the European Commission President, Mr. José Manuel Barroso, came to Ireland and spoke about key aspects of the taxation issue. The corporation tax rate in Ireland of 12.5% was introduced by the rainbow coalition that governed until 1997 and was implemented by the following Administration. This was one of the most important factors in creating the Celtic tiger. The large multinationals I have spoken to want the corporation tax rate of 12.5% retained and there is nothing in this treaty that will cause it to change. We have a veto that protects our taxation rates and the rate of 12.5% is secure. There has been talk of enhanced co-operation that could see some states, of their own accord, form alliances in this regard but this requires nine of the 27 states and it has not happened to date.

It is important that Ireland shows that it supports the European model because it has benefited us. I am adamant that we should give the Lisbon treaty a resounding "Yes" vote and that our tax system should remain intact. There has been much talk of tax harmonisation but for this to occur it must be shown that it will not in any way interfere with commercial realities for individual states. This matter should be put aside and people should be aware that our corporation tax rate of 12.5% is secure because the Lisbon treaty will have no impact on it.

The treaty has no impact on Ireland's neutrality, something I believe in. Under our Constitution anything that affects our neutrality must be put to the people in a referendum. The fact that we are voting on the Lisbon treaty is a healthy measure of our democracy. I am confident the Irish people support Europe because we have done very well from being part of the EU. People have fears but if they are addressed and if they ask whether Europe been good for us in the past the answer will be "Yes".

The other issue that has been thrown up in this debate concerns the WTO negotiations. Ireland has a veto in the negotiations. The Lisbon treaty has no impact on the talks. Commissioner Peter Mandelson comes from England where the farming sector is not as vital a factor to its economy as it is in Ireland. There will always be trade-offs in world trade negotiations but the agriculture sector appears to be of no relevance to Commissioner Mandelson.

The Government must get across that while we want free trade and the opening of markets in Brazil, India and China, it cannot be done to the detriment of Irish farming. Farming is the lifeblood of rural Ireland, a pillar of our society and economy which must be protected. I congratulate Deputy Michael Creed on the great work he has done in this area.

The loss of a commissioner has arisen in the debate. Ireland will have a commissioner for every ten of 15 years. However, this applies to all member states and not just Ireland. The proposal of rotating commissioners will not come into play until 2014.

The current commissioner system with 27 positions is unwieldy. A great benefit of the Lisbon treaty is that it will give extra powers to the European Parliament in legislative decision making in the EU. The European Parliament, as provided for in the treaty, must when bringing forward any directive make the Dáil aware eight weeks beforehand to allow it to be debated. This is very democratic and will allow debate to take place. As my party's deputy spokesperson for finance, I am aware that Irish legislation is increasingly governed by EU directives. Many mistakes and oversights have been made when directives were dealt with at EU level. I am glad that at national parliament level we will have an input in decision making. Control mechanisms are in place to ensure the EU Commission gives valid explanations as to why it is bringing forward directives, a welcome development. Another welcome development is the placing of the Charter of Fundamental Rights on a legislative basis.

It is vital for Ireland's interests that we vote for the Lisbon treaty. Ireland has benefitted significantly from EU membership and will continue to do so. The danger is that people will vote against the Lisbon treaty for reasons that have nothing to do with its contents. It is up to Members to explain to people what the treaty means and to deal with their concerns over our neutrality, taxation, accountability and the world trade talks. This will mean that when the people vote on the Lisbon treaty, they will be aware they are voting for streamlined EU institutions that will allow progress in a sustainable, strong manner and have a peaceful and prosperous Europe of which Ireland can continue to be a member.

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