Áine Brady (Kildare North, Fianna Fail)

I welcome the opportunity to contribute to the motion on our corporation tax policy.

As a member of the Government party and as a Kildare Deputy, I, as many others in the House, clearly understand the benefits of our corporation tax policy. Despite the difficult economic challenges we face, one of the key successes of our taxation policy is our corporation tax. While fully recognising the contribution of our flexible and educated workforce, our improving competitiveness and our greatly improved Infrastructure in attracting foreign direct investment, our 12.5% corporation tax has been a key incentive in attracting inward investment to Ireland. We have the youngest population in Europe, with one in three under 25. We have the highest proportion of graduates among the 25 to 34 age cohort in the European Union and we have the third highest proportion of maths, science and computer graduates in the 20 to 29 age cohort in the Union. Taken together with the investment in our infrastructure, our roads, rail, airports, research, innovation and our educational facilities, this gives us an ideal opportunity to maximise the benefits of our corporation tax policy.

It is important, as many other Members have said, that we send out a clear and united message from this House that all parties support the current corporation tax rate of 12.5%. My county of Kildare is home to many world renowned companies, such as Intel, Hewlett Packard and Wyeth, which have successfully built their businesses from their Irish base. Our tax policy and our people have been successful in attracting leading multinational companies to Ireland and in the process have created hundreds of thousands of jobs that would otherwise have been lost, not just to Ireland but to the European Union as a whole. Ireland is home to eight of the top ten global technology companies and 15 of the top 25 medical devices firms. Foreign direct investment accounts for €110 billion, or over 70%, of total exports in the Irish economy. So far this year alone, the IDA has secured over 70 new investments into Ireland, with 20 of these from companies setting up operations in Ireland for the first time. Our corporation tax policy was key to ensuring that these investments came to Ireland.

In debating the merits of our corporation tax policy, it is important that we realise that Ireland's corporate tax rate is not the most competitive in the world. When Ireland competes for jobs and investment, we are not competing against the European Union. We are competing against countries such as Israel, Singapore, China and India. When we are successful in attracting inward investment and win jobs, the entire European Union benefits. When we lose investment to countries outside the European Union, the investment is lost to the European Union, not just Ireland.

Intel is one example of a successful multinational company based in Ireland. Kildare is home to one of the largest Intel manufacturing sites outside the United States and this site is now a hub for some of the most exciting technology and manufacturing research currently taking place in Europe. Intel has established a partnership with NUI Maynooth, as it appointed NUI Maynooth as its first ever global education partner. It has built on the already strong relationship between NUI Maynooth and Intel through the Innovation Value Institute. The building of such links, whether with NUI Maynooth or the community, are further examples of how, once companies are established here, we can strengthen the links with Ireland.

The publication today of the four year plan includes a firm commitment to maintaining the current corporation tax rate. While the rate in itself is not the most competitive in the world, it gives security and comfort to foreign companies based here, that there is consistency in our policy. Our export market will be the key element in a return to growth in our economy. It is important that we send out a strong signal to existing companies based here and potential future investors on our strong and long-standing commitment to the 12.5% rate. Our position on our corporate tax is unambiguous. It is protected in an EU context by the principle of unanimity in taxation matters and is further protected by the legal guarantee in the Lisbon treaty.

As a Deputy who represents a constituency where successful foreign direct investments are based, I am delighted that the Government and this House reaffirms Ireland's long-term commitment to the 12.5% corporate tax rate. I know from talking to companies based in Kildare that our corporation tax rate has helped us build the credibility of Ireland as a business-friendly country and it is important that we protect this reputation as we build for the future.

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