Liam Twomey (Wexford, Fine Gael)

I support the motion. The committee was set up to examine whether the draft EU directive complied with the subsidiarity principle and we decided that it did not and gave a reasoned opinion for that. The directive would result in increased costs for member states and, as drafted, it does not outline fully how much it would cost every member state over time if it were implemented. However, we will not secure the minimum number of votes required to block the directive. A total of 18 votes are required and it looks like that figure will not be reached. This means the directive will reach the next stage of discussion at both Commission and Council of Ministers level. Contrary to what Deputy Dooley said, it has been clear in all debates in this House that this country is willing to discuss the CCCTB. There is a need for this country to be able to make its case rather than just threaten to veto proposals. We will discuss every aspect of the draft proposal but we will be absolutely clear that we will protect our corporate tax rate at every level of the European institutions because it is vital to our financial well-being and always has been. Sometimes when I hear other Heads of State discussing this country's position on corporation tax it seems they are very much playing politics for a local audience and it has nothing to do with the European project.

It is important that Ministers and officials are sent to Europe with a clear indication of what they need to protect in this country's interests, namely, as all Members have said, the corporate tax rate of 12.5%, that we have defended time and time again throughout the crisis at European level. The issue has taken on an added dimension because we are seen to be almost in conflict with some of our major trading partners within the European Union. Concerns have been raised by the German Chancellor and the French President about this country's corporate tax rate. They have been very much part of the wider financial concerns that are being expressed at European level about what has happened in this country in recent years.

The Government will work extremely hard to bring stability back to the economy to help us get out of the financial mess in which we find ourselves. Many of the concerns that have been expressed in the course of the debate in recent months will fade into the background if we manage to succeed in turning around the economy, get a return to growth, and control spending and debt in the long term. That should be the No. 1 priority for every single individual in this House because that is what will protect our future.

Even if the directive on the common consolidated corporate tax base goes forward for discussion it could be another 15 years before it comes back to this House for serious discussion. That is assuming we do not veto the proposal. It takes years for such directives to go through the European institutions at the best of times so we should not be too concerned about the proposal. Neither should we make any wild statements on what other countries say or are telling this country to do during the financial crisis.

We are setting out to protect our corporate tax regime. We have given a reasoned opinion on why it does not comply with subsidiarity. The Government is big enough to go to Europe and negotiate on behalf of this country on any draft directives put forward. We should not issue the threat of a veto even before we see what Europe proposes to do with us.

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