Joe McHugh (Donegal North East, Fine Gael)

I formally second amendment No. 2. I congratulate the Minister for Finance, Deputy Michael Noonan, and the Taoiseach, Deputy Enda Kenny, for being proactive in ensuring we hold on to our 12.5% corporation tax rate.

By being proactive we are sending a very strong signal that we intend to create certainty and that we are very committed to the foreign direct investment already in the country. We are also looking to ensure we can be in a strong position to attract further foreign direct investment.

Initially we should separate two issues. The debate at a European level has introduced some confusion as the common consolidated corporate tax base, CCCTB, debate has been mixed with the corporation tax rate debate. If a gentleman by the name of Mr. Sarkozy speaks about increasing our corporation tax rate and simultaneously changing our CCCTB model at a European level, confusion will come about. This will also blinker the real debate. There are different percentages of tax write-offs from France and the United Kingdom, for example, and to use accounting terminology, the books are done in different ways. We must be very clear about the CCCTB debate and separate it from the discussion concerning corporation tax.

I have been in contact with numerous people concerned with foreign direct investment in this country in the past six months, and what they require now is certainty. The Minister for Finance is trying to create that certainty. Any company, either a small or medium enterprise or one concerned with foreign direct investment, in planning or looking to expand or invest, will require a five-year plan. With all this uncertainty, such scope does not exist. It is an important point in the debate.

President Sarkozy is speaking about our corporation tax rate and at the same time there is an issue with our fishing territory, specifically relating to the different percentages of fisheries catch among the French and Spanish, for example. I am calling for us in the House to lead a more proactive engagement with MEPs across the political divide and across Europe. There must be a constructive process as a priority as the electorate is looking for something different, which was reflected in this general election. The electorate does not just demand something different on the basis of optics or pedantics; it wants a constructive conversation with European counterparts. Currently there is uncertainty regarding the euro and the further expansion of the EU so we must engage more constructively with MEPs at a European level.

The Taoiseach and members of my parliamentary party will continue with this dialogue. A colleague and Minister, Deputy Simon Coveney, has already started that debate because he had the opportunity of being an MEP and being in this House as a member of the Opposition. He is now in a ministerial portfolio but has rich experience which we should tap into. We must be a country which leads. We are already doing it at a ministerial level through Deputy Michael Noonan and the Taoiseach and we must continue it through with our colleagues across Europe. It is important for this to contribute to certainty that is needed as currently, companies involved in foreign direct investment and multinationals are unable to have a proactive and positive outlook for the future.

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