Michael McGrath (Cork South Central, Fianna Fail)

I welcome the opportunity to support the Government amendment to this motion. It is rare to have such agreement across the House and it is essential Members speak with one voice on this critical issue for the economy. I welcome the National Recovery Plan 2011-14 which was published today and which reaffirms the Government's commitment to retaining the 12.5% corporation tax rate as the cornerstone of our industrial policy and our wider economic strategy. It was clarified beyond doubt during the Lisbon II discussions and campaign and by various Heads of State across the European Union since the referendum, that setting the corporation tax rate is entirely a matter for domestic law. While many of our European partners may not like the fact that we have such a low rate, which gives us a competitive advantage in terms of attracting inward investment, it is exclusively a national competence and will remain so. It is important we are clear and definitive on this point.

As a country which is geographically peripheral and an island nation, a low corporation tax rate gives us a critical advantage. It is an essential tool for attracting inward investment as has been reaffirmed by the IDA, the American Chamber of Commerce and the various multinational companies that operate in Ireland and support up to 240,000 jobs. The importance of these jobs to our economy cannot be overstated. The front page of my local newspaper the Evening Echo today states that the Apple workforce is set to hit 3,000. Apple Computers has a major base on the northside of Cork city and currently employs 2,665 people. It now plans to take on at least another 300 employees over the next 12 months, which will bring the total number of employees to over 3,000. This is a remarkable success story. If we were to send out any kind of uncertain or mixed message about the corporation tax rate here, investments such as that and the future of companies such as Apple in Cork might be open to question. It is essential we are crystal clear on the issue of our tax rate.

When I look at the other companies in my constituency, I note they form the bedrock of the economy and the employment base in Cork. These are pharmaceutical, medical device and technology companies, like Pfizer, Novartis, Centocor, GlaxoSmithKline, Johnson & Johnson, Eli Lilly and Schering-Plough. All these companies have bases in Cork and strongly support the need for the corporation tax rate to be kept at 12.5%. For that reason, I support it wholeheartedly. Even though some of these companies have had to reduce the number of employees because of a reduction in global demand for various products, all of them have reaffirmed their commitment to remaining in Cork and in Ireland. We should not miss that crucial point in this debate. If there was a question mark around the future of the corporation tax rate, much of that investment would move to find a more attractive home internationally. We need to end any speculation about the future of the corporation tax rate and stand united in support of the Government's commitment to retaining the 12.5% rate.

In the context of the funding package that is to be agreed with the IMF and the European Union, it is inevitable that there will be some diplomatic and political pressure brought to bear on the Government on this issue. That pressure must be resisted at all costs. I know the Government is resolutely determined to resist pressure and to ensure our corporation tax rate remains the cornerstone of our economic strategy.

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