Damien English (Meath West, Fine Gael)

The Acting Chairman might let me know the time at four minutes because I have a tendency to ramble a little towards the end. I am sure he will sort that out.

I am glad we are having this debate. Like many in my party, I never believed the 12.5% corporation tax was at risk. Sometimes Ministers like to show off, claiming they are saving things and getting things done. They dream up events and potential disasters, everybody panics and then they say everything is grand, they sorted it out. However, because Ministers have done that or allowed it to happen over time - not only in the past week - it is important to have this debate so that every Member can clarify his or her intention with regard to this tax and where its position will lie in the future.

Many foreign direct investment companies locate in Ireland. They cater for almost 70% of our exports and massive employment, direct and indirect, is generated by them. It is very important, therefore, to send out a clear message to them. It must be totally clear and contain no doubt. The Minister has tabled an amendment and expressed his agreement about the rate in the plan which was launched today. I would like him to clarify and confirm that in addition to our maintaining the headline corporation tax of 12.5%, there will be no requirement, explicit or otherwise, for this country to introduce or agree to any measures in regard to its corporation tax regime as part of the financial assistance package from the EU and the IMF. I hope he will do that in his wrapping-up speech and put beyond any doubt that, the tax apart, the regime will not be touched in any other way. Business leaders want to see that because they make decisions for ten or 15 years ahead. They are not like governments which try to bring in a budget and plans for the coming year. I am thankful we now have a four year plan. I called for one two years ago because people need to see exactly what is going to happen. Business people make long-term decisions and they need to know whether there is any doubt about the tax regime. I do not believe there is but we need total clarity. That is why we are having this discussion tonight about this matter and other issues. I hope the motion will be accepted and the message will go out very clearly.

This sector is very important. We know the business generates approximately €110 billion. The expenditure in the Irish economy is about €19 billion but the number of jobs created and the money created by the job payroll is about €7.1 billion. A great deal of money comes into the country, with nearly €3 billion in corporation tax also contributing to the State. This is an area we cannot let go and must protect as much as we can.

Other countries in Europe may be concerned about our tax regime and may think they are losing out because of us. It must be made clear to them they do not lose out. The companies that choose to locate here do so for many reasons but if they did not come here they would probably go elsewhere and not to mainland Europe. The Minister for Enterprise, Trade and Innovation, Deputy O'Keeffe, stated that last night. I agree with him but the message must be made clear to people and leaders in other countries who are concerned and look with envious eyes at us. Ministers must get that message across and use their positions at various meetings in Europe to explain this situation is unique to Ireland and no other country in the European project is losing out because of it. Now more than ever we need this tax rate because we have a massive amount of money to pay back. Whether we will ever manage to repay it is one thing but we certainly have to pay the interest due which on its own might cost €10 billion, if not €11 billion, per year by 2014.

We need serious growth and job creation plans in order to create jobs. That means we must attract more business from abroad and cannot take the situation for granted. The tax rate is one area but we must chase after other areas too. The cost of labour here is enormous having jumped that way because of the cost of property. That needs to be addressed but I do not agree it should be done by cutting the minimum rate of pay. That is not what it is about. There are other ways in which labour costs too much. I call on unions to be part of this and have a proper discussion about it because when wages in certain areas are too high, that is a big issue. The cost of doing business here is affected and most of the Government-regulated costs are too high - insurance, banking charges, energy and so on. We must drive down these costs. We cannot take the international businesses for granted but must work with them and drive down their costs. We must also work with them on planning matters, driving down delays and speeding up decision making. Reference was made to Maynooth, Intel and Photex. There was a very worthwhile project in that area which was shot down by the planning authorities, stupidly so to my mind. I am all for proper planning but common sense is also required. We must work with and keep new businesses in this country.

See this speech in context