Micheál Martin (Cork South Central, Fianna Fail)

Yes, Question No. 9 deals with the same issue as Question No. 4. As regards the Taoiseach's discussions with the British Prime Minister on the financial transaction tax, it appears the momentum behind this is well under way, in particular given the announcements made by President Sarkozy. However, it may be that this will only last as long as the election campaign in France. We will have to wait and see what happens in that regard. I would like confirmation and clarification from the Taoiseach as to the Government's position in this regard. This is not only about Ireland, Dublin and the City of London. I would argue it is about European and eurozone competitiveness with the rest of the world. It is important that Ireland should adopt a joint approach with the British Government on the overall issue of a financial transaction tax and a European approach regarding European competitiveness vis-À-vis Asia or the so-called BRIC countries or in respect of what is happening globally. The world is much more mobile today than it was.

I refer to a matter of greater importance. A statement was made in December that the common tax base was to be put on the agenda in the context of enhanced co-operation. The Taoiseach mentioned earlier that he intended to discuss this with Prime Minister Cameron. As the Taoiseach is aware, the common consolidated corporate tax base is an extremely serious issue. The Department of Finance has commissioned research that indicated this proposal would have a significant impact on Ireland's gross domestic product, GDP, and would result in a reduction by a number of percentage points in Ireland's GDP. Did the Taoiseach discuss this matter in detail with Prime Minister Cameron? Did they agree on a joint approach in respect of the evolution of Europe's position on a common consolidated corporate tax base?

The corporation tax rate is central to Ireland and the International Financial Services Centre, IFSC, provides 33,000 jobs on foot of a very far-seeing initiative by a former Fianna Fáil-led Government in the 1980s. More than 33,000 people work there at present and it is of crucial importance to Ireland. Both a financial transaction tax and the common consolidated corporate tax base would be harmful, as would any attempt to undermine Ireland's corporation tax rate on foreign direct investment in general and in particular in respect of the IFSC. In this context and in the context of the fiscal treaty, the Taoiseach is aware that before the second Lisbon treaty referendum, the then Government secured a protocol that safeguarded Ireland's corporation tax rate and which entailed all the other European states signing up to a commitment not to undermine or to make any attempt to affect Ireland's corporation tax rate. Has a similar agreement or protocol been attached to the European Union fiscal treaty? Alternatively, is there an understanding that as this intergovernmental approach develops, there will not be moves to undermine Ireland's position in respect of corporation tax?

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