Robert Dowds (Dublin Mid West, Labour)

As this is my first occasion to speak in the House, I thank the voters of Dublin Mid-West for giving me the honour to represent then in Dáil Éireann. I acknowledge my huge debt to my campaign team for their successful efforts in getting me elected.

I support the Government amendment to the motion. In doing so, I express my extreme disappointment at the actions of some European Governments, particularly the German Government and, more especially, the French Government led by President Nicolas Sarkozy, for pressing the Irish Government so severely on the level of our corporation tax. Both Governments, and the EU as a whole, know how severely pressed our country is, due to the previous Government's disastrous bank bailout, which has caused so much trouble to the Irish public, and to the Government deficit. What is the point of kicking a country further when it is already struggling to survive financially? If the French and Germany Governments got their way in increasing our corporation tax rate we would surely lose a great deal of potential inward investment that might not otherwise come to the EU at all. How would that help us get out of the mire we are in and how would it help the EU?

Much of the pressure on Ireland to increase our corporation tax rate has to do with local French and German politics. I base this belief on two things. The first is the local political situation in France and Germany where the Governments are electorally vulnerable. Second, the corporation tax rate in France is only a small proportion of the cost of doing business there. The effective rate of corporation tax in France is 8.2% compared to an effective rate of almost 12% in Ireland. What really makes the difference is that labour tax in France is 51.7% compared to less than 12% in Ireland. This, therefore, is much more the disadvantage under which France is working, rather than corporation tax.

Where Ireland is particularly vulnerable in regard to corporation tax is in regard to alterations upwards which would establish a situation of uncertainty and effectively discourage inward investment. As the last speaker pointed out, this would put us in a situation where we would be much less able to meet the pressing demands we face at present, which are in part due to the situation caused by the EU-IMF deal and the downturn Ireland has experienced.

In my constituency, well over 10,000 people are on the live register and parts of my constituency are severely marked by the blight of long-term unemployment, with all its negative consequences. We do not need more of this. The crazy point about the attacks on the corporation tax rate is that, should they succeed, it would only put us in a greater economic mess. In standing up for our corporation tax rate, we need to remember the meaning of the seanfhocal, ní neart go cur le chéile. We need to hang together for the sake of our country, and defending the corporation tax rate is a minor part of what we need to do. Unlike the previous Fianna Fáil Government, we must drive a hopeful agenda, of which defence of the corporation tax rate is but a part.

I would make the following practical suggestions, and it is important the Government takes these into consideration. While they are in the programme for Government to some extent, we need to flesh them out as much as possible. We need to campaign to bring people with Irish roots back to Ireland as much as possible to boost tourism. We must work out clever ways to encourage the many people with money in Ireland to actually spend it. We must design Government contracts in such a way as to increase the chances of Irish companies lodging successful tenders, which is done very effectively by some of our EU partners but which we do not do as well as we might. We must develop Ireland as a hub for the teaching of English as a foreign language. I hope these suggestions will be actively pursued for all of our benefit.

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