Tom Hayes (Tipperary South, Fine Gael)

I am glad to have an opportunity to say a few words in this worthwhile and important debate, and pleased the Minister indicated the House would not divide on the motion. I have never seen so many people unite behind an issue as they have in recent weeks with regard to need to retain the corporation tax rate of 12.5% which Ireland has enjoyed for many years. The current rate has delivered significant benefits to constituencies, counties and individuals. Every constituency has examples of companies which have located there as a result of the success of the 12.5% rate.

Ireland's corporation tax rate has been discussed in boardrooms across the world and is one of the determining factors in companies' decisions to locate here. We have reaped considerable benefits from foreign direct investment, FDI. Enterprise Ireland has recorded that FDI companies are responsible for exports of €110 billion, contributions of €19 billion of direct expenditure in the economy and a total payroll of €7.1 billion. These companies employ 136,000 people directly and a further 100,000 people indirectly, and most of their employees are looked after well.

In my constituency, FDI companies are located in Cashel, Clonmel, Carrick-on-Suir and, to a lesser extent, Tipperary Town. Certain towns are crying out for foreign direct investment. Tipperary Town, for instance, where the Minister of State, Deputy Martin Mansergh, and I live, has been waiting for a long time for such investment. I hope a company will avail of the opportunity to establish itself in the advance factory constructed in the town. This would deliver major benefits to Tipperary which has been crying out for industry for many years.

We must examine how we do business in areas other than corporation tax. Local authorities need to speed up their procedures on planning applications. While some local authorities are good at welcoming foreign direct investment and roll out the red carpet for foreign companies, many such companies face planning delays. We should do everything possible to accommodate foreign companies.

Many young people are leaving our shores because they no longer have employment opportunities. Facilitating multinationals which are considering Ireland as a location for investment would help address this problem. We have an educated population which is keen to work. Many of our young people are departing for the United States and Australia and will bring benefit to the economies of those countries. We should leave no stone unturned at local authority and national level in our efforts to accommodate multinational companies.

While we all support the 12.5% corporate tax rate, we need to continue our efforts to encourage as many companies as possible to locate operations here. Ireland has a clean environment and is one of the best places in the world to live. We must take up the challenge to encourage companies in the United States, Canada and elsewhere to locate here. People will work hard and give a lifetime commitment to their place of employment. Foreign companies have a great future here.

See this speech in context