Michael D'Arcy (Wexford, Fine Gael)

It is crucial for the future development of our country that we have certainty regarding the 12.5% corporation tax rate. The rate should be considered in the context of our European partners. Many of the 27 member states have lower rates than ours. They have had a good look at our rate and the amount of foreign direct investment which comes in, based purely upon the amount of corporation tax to be paid by the corporate entity. I understand two of the 27 member states have a corporation tax rate of 0% but they get the benefit of employment and other taxes which swell the coffers in their countries.

Something which might be considered is the Swiss position, where there are different rates of corporation tax based upon where the company establishes itself. Some are located in the outer cantons of Switzerland which have a corporation tax rate of 0%. The companies based in the capital pay a standard country rate. The benefit of this is that it is not a version of aid coming from anywhere, rather, it is a tax reduction. It is something which we should consider.

As someone who is from Wexford, unlike my colleagues who have just spoken, including Deputy Breen who spoke about the benefits of Clare which has an airport and a deep sea port, I know transport hubs will always have the benefit of companies establishing in those areas. We do not have those companies and therefore do not have the benefit of the employment and cash in the local economy.

The tax growth will be approximately 1.75%. That cannot happen without a clear and unequivocal message to companies which are established or establishing. The value of their products has been mentioned but I want to put it into context. A neighbour of mine has a trucking company and was taking a lorry load of product from Intel to the Continent. He had to increase his insurance on his cargo by a multiple of millions. One lorry load of high value added product costs millions. We have the benefit of that for the country. We also have the benefit of many of the internationally recognised global companies which have decided to establish the European base here and some have even establish their world bases here because there is one benefit, corporation tax.

An amendment which was not required is merely another example of business as usual. Even though the Government applied for funds from the IMF and the European financial stabilisation fund on Sunday night we had business as usual here. There was no attempt to recall the Dáil in emergency session. How this Chamber can continue to operate with a business as usual mentality when fiscal and financial emergencies are happening is beyond me. It is no wonder the public are angry and vexed with everybody in this Chamber when those circumstances prevail.

See this speech in context