Enda Kenny (Mayo, Fine Gael)

Deputy Martin started with an assertion that I said we are funded until 2014 in all circumstances. That is not what I said. The Deputy is aware that the bailout deal goes well into 2013. The position is that the Minister, Deputy Noonan, yesterday set out clearly the situation in so far as answering the questions he was asked. He said quite clearly that he is not prepared to negotiate on the basis of giving up Ireland's corporate tax rate for a basis point reduction that would be worth approximately €150 million to Ireland. He is right in that. On 11 March, one or two days after the Government was formed, at the first European leaders' summit I had the privilege of attending, I made it very clear that Ireland would not concede an increase in our corporate tax rate. We had a very healthy scepticism about what I viewed as tax harmonisation by the back door in respect of CCTB.

A total of €15.6 billion has been drawn down from the financial packages, comprising €11.4 billion from the EFSM and €4.2 billion from the EFSF. This means that any interest rate reduction would apply in respect only of the remaining moneys of €24.6 billion. The Heads of Government devolved the negotiating right for the reduction of interest rates to the Ministers for Finance, and that is being pursued. I have been to Washington and New York where I confirmed to business interests Ireland's message that we are not shifting from the 12.5% corporate tax rate.

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