Shane Ross (Dublin South, Independent)

I will move seats.

The IFSC is obviously threatened by the fact that it will compete with the city of London on different terms if the British secure the exemption they seek from any deals on a Tobin tax or other threats in the financial area. If a Tobin tax or financial transaction tax is introduced, as appears to be the intention of the deal, the IFSC will be at a competitive disadvantage. If the British get the bit between their teeth and decide they will compete on laxer terms, many of the companies which have located here for tax reasons will move to the United Kingdom because the tax advantage they enjoy here will be removed. Given that the Taoiseach did not refer to this issue, I am interested in hearing his response. If the approximately 33,000 jobs involved either peripherally or directly in the IFSC are threatened, the position will get worse. The IFSC is a vibrant and expanding area of which we can be proud. It should have been defended at all costs because we cannot afford to lose it.

The second area that is threatened by the deal is undoubtedly the multinational sector. I do not accept for one moment the dissembling that is taking place in respect of the 12.5% corporate tax rate. Let us make no bones about this issue; the people who are pulling the strings in Europe want us to lose our corporation tax rate. President Sarkozy and Chancellor Merkel made it plain yet again last week that the 12.5% rate was in their sights. While no specific agreement on the issue was reached, as they stated last week, they have our corporate tax rate in their sights. The corporate tax base was mentioned and agreed on at the weekend. The distinction that is always being made between the corporate tax base and corporate tax rate is a semantic and Jesuitical one. The Taoiseach's statement in March that the introduction of a consolidated corporate tax base would open the back door to the corporate tax rate is correct. The term "corporate tax base" is being used to mollify us while Europe introduces what it describes as a "fiscal union" and what the Taoiseach describes as "fiscal co-ordination". Once we have a fiscal union, we will move on to tax harmonisation, by which point we will have travelled down the corporate tax road. Corporate tax is in the sights of others and we are powerless to do anything about it. This can be seen from the fact that the issue was not on the table.

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