Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I thank the Deputies for contributing to what was a useful debate. I might make some remarks on the key part of the summit on energy and then deal directly with the question of taxation asked by a number of colleagues.

One of the realities we must face is that the United States of America will become a net exporter of energy within a short number of years. The developments in the United States on fracking and the new explorations they have done mean that manufacturing in the United States is becoming significantly cheaper as a result. If one looks at much of the international literature, it is now cheaper to manufacture in the United States than it is to do so in China because of the increase in economic activity in China and the cost of transporting goods in particular and services.

The United States of America has got its act together on energy, and Europe must do the same. There is a challenge, to take up Deputy Higgins's point, about ensuring we get private sector investment in the energy market going again. We have said that from day one. In a circumstance where banks across the eurozone are not lending, we must ensure the framework is right for private sector investment to come in and fund not only public infrastructure projects but areas of energy policy as well. Good progress was made by the leaders in this area.

I understand there are four areas which now must be taken forward. They are energy efficiency, about which the Taoiseach spoke, competition in the EU internal energy market; getting the investment right - we reckon there is a requirement of close to €1 trillion for that investment to ensure we can become an exporter of energy in the same way the United States has become and China will become within a decade; and ensuring we have a diversified energy supply in Europe. These were issues of primary importance at the Council meeting.

On the question of taxation, on which we heard a number of contributions , I say boldly on behalf of the Government that we have nothing to be apologetic about. We have not in any way put to one side the views of other people on this issue. The reality is that major international businesses have located their business in many parts of the world. They have manufacturing here, trading there, sales elsewhere and intellectual property in another part of the world. That is the reality of modern trade and of the huge global corporates today.

The problem is not the 12.5% corporation tax rate in Ireland, which, as Deputy Ross stated, is entirely transparent. What one sees is what one gets. Our effective tax rate is within 1%-----

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