Billy Kelleher (Cork North Central, Fianna Fail)

I welcome the opportunity to speak on this motion, which allows the House to reaffirm its support for the 12.5% corporation tax rate as a central plank in Ireland's economic development in recent years. We must send a clear message that it can only be changed by a decision of the Irish Government and the Oireachtas. The former President of the European Parliament, Pat Cox, has stated:

The consent of the governed in Ireland for the Lisbon treaty was informed by the guarantees, including the tax guarantee. Its nullification without their consent would be an act of duplicity unworthy of any law abiding and self-respecting institution.

Every political party represented in this House supports the 12.5% corporation tax rate policy.

The policy attracts significant foreign direct investment and supports job creation both directly and in spin-off companies servicing multinational companies. More importantly, it facilitates the expansion of indigenous expertise across all sectors, from medical devices and life sciences to software and computing. Our own people have worked in multinational companies before starting up their own small enterprises. Several indigenous companies in the medical devices and software sectors have enjoyed significant growth.

Alongside our corporation tax rate, we must also maintain a competitive marketplace. Multinationals consider several factors before deciding on a location. These factors include the education of the workforce and investment in innovation and research and development. The Government will have to target investment in science, engineering and technology if we are to ensure we produce the best graduates who can serve these multinationals and, more importantly, become leaders in their own disciplines.

With the IFSC, Ireland is recognised as a hub for financial services. Despite the current difficulties in our banking sector, Ireland's international reputation for financial services has not been damaged to the extent that some in this House would allege. We are recognised for strong regulation and governance in this area. The difficulties we experienced primarily arose in the context of indigenous banks.

The hare of corporation tax has been flushed by various individuals in the context of the Lisbon treaty referendum and, more recently, with the visit of the European Commissioner for Economic and Monetary Affairs, Mr. Ollie Rehn and officials from the IMF and the European Commission. It is stated in the Treaty of Rome and reaffirmed in the Lisbon treaty that our corporation tax rate is a competency of the Government and Parliament. This debate has been positive in every way and sends out a strong message to the many foreign direct investment companies that are looking around the world to see where they will locate. We have a lot to offer and this is a central plank in that offering.

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