Dáil debates

Wednesday, 29 May 2013

European Council: Statements

 

12:00 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein) | Oireachtas source

Tax avoidance and evasion were two of the key issues discussed at the EU Council summit. Last week, we had the startling revelation that one Apple subsidiary was only paying a 2% tax rate, well below the 12.5% statutory rate. It is important to acknowledge that multinationals have brought and continue to bring much needed investment and job creation to our communities. However, there is a world of difference between corporations that are based in the State and properly pay their tax and "brass plate" companies that funnel money through the State, taking advantage of loopholes to avoid paying tax.

Last week in Washington, Apple disclosed that one of its Irish subsidiaries held profits of $30 billion, had three directors, no employees and paid no tax in Ireland or the US. Yesterday, it was revealed that Abbott Laboratories Ireland Limited, a company registered in Ireland, made €1.8 billion in profit but paid 0% in tax. Accounts for Abbott Mature Products International Limited cite the company as being a "non-resident Irish entity incorporated in Bermuda". It would have been liable to pay €235 million in Irish corporation tax had it not been exempt under the tax code. When the State is being described as and accused of being a tax haven internationally or by our trading partners, there is some credibility to the claim. It does serious damage to brand Ireland.

Despite the controversy, the Dáil still does not have a full explanation from the Government on whether it reached an agreement or understanding allowing multinationals to avoid tax. It seems that we are operating two different tax systems - one for big multinational corporations and a second, more onerous system for small and medium-sized indigenous companies and individuals. As the Acting Chairman will recognise from his long experience, this is not a fair system of commerce and is undoubtedly hurting our domestic economy. It is contributing to our stagnant local economies, encouraging emigration and keeping unemployment levels at 14%. PAYE workers are bearing the brunt of tax increases and social spending cuts, yet wealthy, influential corporations are able to escape through tax avoidance measures.

Sinn Féin recognises that investment from multinational corporations in Ireland has provided much for the State in terms of job creation and payroll taxes. These jobs need to be protected. However, the Government should move to close tax loopholes and work with our international partners, especially within the EU, to improve tax collection efficiency and tackle tax evasion and fraud.

We should also be mindful that tax avoidance by global companies severely disadvantages and discriminates against people in the developing world. Surely we have a duty to stand by those citizens. There have been missed opportunities during the Irish Presidency, including at the recent summit, to raise critical issues about the developing world and the Middle East.

I wish to address the ongoing tragedy in Syria. The Tánaiste attended talks with other EU foreign Ministers on the crisis this week. He argued against a relaxing of the arms embargo on Syria. I commend that position and part company with Fianna Fáil on the issue. It is disappointing that, after 14 hours of talks, the EU foreign Ministers could not agree a united position on Syria and the embargo. Consequently, the embargo will not be renewed and EU member states are free to ship arms to Syria from 1 June.

While there has been a political declaration to the effect that no one will ship arms for the moment, this is undoubtedly a retrograde step that risks further militarising the conflict. The reaction of the Russian Government, which yesterday pledged to arm the Assad regime further, seems to confirm this.

The war in Syria has already claimed more than 80,000 lives and created 1.5 million Syrian refugees. Sending more weapons will increase the bloodshed and deepen the conflict. This risks further destabilising the region, especially Lebanon and other neighbouring countries that are already struggling to host significant numbers of refugees. The best way - indeed the only proper way - to stop conflict is through talks and building a peace process. The USA and Russia have recently shown interest in creating a forum for the Syrian Government and rebels to try to start peace talks. This idea is welcome and needs to be encouraged, nurtured and given more time. It should also be overseen by the UN and neutral countries with no vested interests in Syria.

One must ask whether the Government is concerned about the lack of unity in the EU on the issue, given the lack of discussion and initiative. I understand that the Austrian Government is worried that the decision could pose a threat to its peacekeepers in the UN contingent on the Israeli-Syrian border. Is the Government worried about Irish troops serving in the region?

It is appropriate that today is the International Day of United Nations Peacekeepers. We should commend the work of the Defence Forces, which have contributed and continue to contribute to UN peacekeeping duties in difficult and dangerous situations around the world.

Does the Government expect further contacts between EU Governments on the issue of Syria in the coming weeks? Could it not put the issue on the agenda before the end of the Irish Presidency?

Like our spokesperson on international affairs, Deputy Crowe, I have long lobbied the Government on the need to be more involved in resolving the Israeli-Palestinian conflict. Numerous times, I have raised the EU Heads of Mission Jerusalem Report 2012, which was handed to EU Governments in January but does not seem to have been acted upon. Israeli settlement building remains one of the greatest threats to the two-state solution to the conflict in the Middle East. The ongoing construction in Jerusalem and the West Bank has ensured that peace talks cannot be restarted.

In 2012, Israeli settlements in Palestine grew by approximately 1,977 acres and all land expansions in 2012 were approved by the Israeli military order. The settlements are illegal and against international human rights and humanitarian law. The Israeli Government is in direct breach of international protocols. According to a new study by AIDA, the Association of International Development Agencies - a coalition of 80 aid agencies - the Israeli Government also demolished 535 Palestinian-owned structures between May 2012 and April 2013, displacing 784 people, more than half of them children. This is ongoing war rather than a peace process. Israeli forces also demolished 30 EU-funded structures, such as water cisterns. The actions are in direct contravention of EU initiatives as well as the rights of Palestinian citizens.

In May 2012, EU foreign Ministers urged Israel to halt the "forced transfer" of Palestinian people and to "comply with its obligations under international law". One could ask when we are going to do something about the situation. An active system of apartheid is in place. One could also ask when the EU is going to tackle the Israeli Government over its breaches of international law. It will be a significant loss of opportunity during the Irish Presidency if the issue is not put on the agenda before the Presidency ends. I again urge the Taoiseach to raise the matter at future EU Council meetings.

I very much welcome the Tánaiste's recent statement that goods from illegal Israeli settlements in the West Bank should be clearly labelled in all EU countries. The EU's High Representative, Catherine Ashton, has already circulated a proposal for the labelling of such goods and consumers could, in effect, boycott the goods if they wish. I have no doubt many Irish people would refuse to buy the products. The Government and the EU have repeatedly condemned what the Israeli Government is doing but we need to follow through on the rhetoric and follow the logic of the position by not only introducing specific labels for such products but introducing an outright ban on the sale of settlement goods.

EU agriculture Ministers were engaged in discussions in recent days in Dublin Castle on reform of the Common Agricultural Policy. We are aware of the significant impact decisions taken on CAP will have on the future sustainability and viability of tens of thousands of farmers. The current system is badly skewed in favour of a small minority of recipients, many of them not active farmers, who receive the lion's share of the single farm payment. It is vital therefore that the new system includes a significant redistribution of funds towards the majority of working farmers, many of whom are struggling to maintain a viable income. No one is advocating that productive farmers should be at a loss but the claim that those who stand to benefit from a redistribution are "unproductive" is an insult to tens of thousands of farmers across this island and in particular in this State. It is not a valid defence of a system in which in some counties a handful of individuals and companies receive as much in payment as hundreds of others.

I wish to return again to the fodder crisis which is having a devastating effect on farmers. I met members of Louth IFA last week to discuss it and other issues. Farming organisations have estimated the crisis could cost farmers approximately €1 billion and result in beef and dairy farmers losing up to 60% of their income for this year. Teagasc has indicated that dairy farmers on heavy soils could be confronted by a 50% reduction in fodder supplies. Farmers in Louth and other such counties have been badly affected. There has been an increase in the number of calls to an emergency helpline and even interventions by the Society of St. Vincent de Paul to assist farm families. While I welcome the efforts made by the farm organisations, commercial bodies, community and voluntary groups and the Department, there is still a feeling that more could and should be done to ensure that no more animals die because of a lack of feed. The Minister for Agriculture, Food and the Marine must take whatever steps are necessary to tackle the current crisis. I asked a question yesterday but I did not get a reply on whether the Government has considered seeking support from the EU Solidarity Fund for emergency funding to address the crisis.

The Taoiseach acknowledged that youth unemployment is unacceptably high. In this State the figures are disguised famously and historically by the flight of many young people to other parts of the globe, yet there are no concrete programmes to provide work for them. Austerity rules when growth and stimulus is needed. Austerity is the mark of the Government and, regrettably, it is likely also to be the legacy of our Presidency.

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