Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Last month, the European Commission announced its intention to open formal state aid investigations into a number of companies in EU member states. This announcement was part of a much wider Commission investigation that had been ongoing for some time into tax rulings and patent boxes in different member states. I am sure the Deputy has already noted the announcement made in respect of the Netherlands and Luxembourg and that Vice President Joaquín Almunia stated in his press conference that a number of other countries were also being examined.

We understand that the Commission has a job to do in investigating potential state aid. Ireland has co-operated fully with the process to date and will continue to do so. However, I assure the Deputy that protecting Ireland's economic interests is foremost in our considerations on this issue. We will provide a detailed, technical legal rebuttal to the Commission's position and, if necessary, defend our position in the European courts.

It is important to emphasise that the Commission has only opened a formal investigation at this stage and has not made a final determination on state aid in respect of Ireland. For state aid to exist in this case, less tax must have been charged to the company than should have been applied and this must have distorted competition within the Single Market. Our response to the European Commission will be clear - the appropriate amount of Irish tax was charged, no selective advantage was given and there was no state aid.

It is also important to emphasise the single focus of this investigation. It relates to this company and this company alone. The Commission has been clear that it is not investigating the 12.5% rate of corporation tax or the Irish tax system. In fact, Commission Vice President Alumina emphasised this point at the press conference he held to announce these investigations. There are no wider consequences arising from this investigation in respect of the Irish tax system or foreign direct investment, FDI.

Additional information not given on the floor of the House

Given the importance of FDI for the economy, members of the Government and officials from various Departments and agencies have taken care to highlight the position of the Commission that I have just outlined. Our message to anyone who is considering investing here is that we have a fair, open and transparent corporate tax regime,and that Ireland remains an attractive, competitive and safe place to invest.

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