Dick Roche (Wicklow, Fianna Fail)

Deputy Kenny made a strong point regarding the seriousness of the position of the European banks and referred to the sub-prime markets. The Deputy also made a very interesting comment in respect of the Federal Reserve in the United States and sought to relate this to Europe. The most important point he made has also been made on several recent occasions by Dr. Garret FitzGerald. We need have no delusions regarding our capacity to change matters within Europe. Ireland has had a disproportionately positive impact on Europe. The way to achieve progress within Europe is by groups working together.

Deputy Kenny referred to his efforts within the European People's Party, EPP, to try to persuade Chancellor Merkel or President Sarkozy that their extraordinary focus on Ireland's corporation tax rate is just not helpful. As Minister of State with responsibility for European affairs, I have always been strongly of the view that we should seek to create groups within Europe. These groups should not be hostile, nor should they divide on the basis of big versus little. What we must do is build a group which focuses on the community method. As Deputies Creed and Barrett stated, the essential secret of the success of Europe is that member states operate as a community. The idea that we should begin to sanction each other or that we must always look after our own national interest first is corrosive in nature and undermines the entire process relating to Europe.

Mr. Robert Schuman's genius was to recognise that countries which had previously resolved matters through the horror of warfare could instead resolve them through negotiations and to their mutual benefit. It was his view that by pooling small elements of sovereignty we could create something bigger. That is the basis of community method. It is not the case that a couple of larger states within Europe somehow dominate the debate. As I have stated at European Council meetings, it is extremely unhelpful that the idea has been created that, somehow or other, one or two big countries are responsible for setting the agenda. That is not the case. The idea to which I refer is a dangerous and corrosive delusion because it undermines the view among the citizenry of Europe that we are all equal.

I value my country no less than President Sarkozy values his. During the course of the Convention on the Future of Europe, I suggested to a famous French politician who was arguing that big countries and their smaller counterparts should not be treated equally, that he should read the Treaty of Rome because the essential ingredient thereof is the concept of equality.

Deputy Kenny's point is extremely important. One of the things we have not done as well as we should have is to try to use the European political families, namely, the EPP, the socialist grouping or the European Liberal, Democrat and Reform Party, ELDR, to discover the logic of our position. As I informed my French counterpart at a Council meeting in Budapest last week, we have no objection if the Government of France wishes to lower its corporation tax rate to 10%, 5% or 0%. That is its business. We have set for ourselves a rate of corporation tax which is mutually beneficial to Ireland and Europe. It is not a question of our playing a zero-sum game or trying to beggar our neighbour. Europe also gains if Ireland attracts foreign direct investment. We have been very successful in attracting such investment and this matter must be viewed in that context.

Deputy Barrett inquired about the discussion with the strategic partners on the question of the High Representative. At the September meeting, the High Representative was tasked with commencing discussions with third countries - the United States, China and Russia - that are of significance in the context of our future. The High Representative has been building on the relationships with China and Russia in particular. The report received related to that specific area.

Deputy Creed referred to the issue of the community focus. I am strongly of the view that this focus is the essential strength of the European Union. If the Union allows itself to be driven by one or two powerful countries, then it will surely spiral downward and will lose the central position it holds. As Deputies stated, we must ensure that the community method will prevail.

I agree with Deputy Howlin's general comment on CCTV. This is a major debate that will arise in the near future. What is proposed makes no sense. I made the point at last week's General Affairs Council meeting that the idea that introducing this complex addition on top of all other tax systems will simplify matters is a delusion.

I thank Members for the contributions, which, as always, I enjoyed. I hope I answered all the questions put. I will deal further and in some more detail with the issue of the Basques on Question Time tomorrow. I thank Members for the attention and for their questions.

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