Eamon Gilmore (Dún Laoghaire, Labour)

Let us look at our record on this. When the issue of 12.5% corporation tax was put forcibly on the agenda by other member states when the Government came into office in March of this year, we vigorously and effectively rebutted and refuted the argument. We made it clear that there was an attempt to get us to trade the position in respect of reducing the interest rate for concessions on the corporate tax rate. We said we were not going there and were defending our corporate tax rate and explained patiently why it was important in order to encourage investment into the country. We have won that argument. I am not surprised to see the proposal re-emerging from time to time and we must look at the re-emergence of the proposal in the case of some countries having regard to their electoral cycles but our position will not be dictated by the electoral cycles in other member states. Our position is soundly based, we are determined to defend that position and we believe the 12.5% rate of corporation tax is important in order to attract investment.

More important than the rate is the certainty it gives to potential investors. People looking to invest in Europe and, in particular investing in Ireland and creating jobs here need certainty about our corporation tax rate and the position of the Government in respect of that rate. We have communicated that at European Union level, bilaterally to other European Union states and globally to investors and potential investors. It remains the case that 12.5% is our corporation tax rate and we are not in the business of changing it.

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