Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

My questions relate to the issue of corporate tax. Fianna Fáil, Fine Gael, Labour and Sinn Féin have all made it clear that they are committed to retaining a low corporate tax regime, supposedly to lure in investment, as a key part of the State's economic strategy. As the Taoiseach knows, a small minority of Deputies question this attitude.

I wonder how the Taoiseach will respond to allegations that are now circulating widely regarding the much-trumpeted ending of the so-called "double Irish". When its ending was first mooted in the finance committee, members initially were told this could not be done because Ireland could not act unilaterally but the Government is now trumpeting the fact that it has acted unilaterally to close off this tax scam. However, the allegation now circulating widely internationally is that the Government is simply replacing one tax scam with another in the form of the so-called patent box. I subscribe to this view but would like to hear the Taoiseach's response. For example, Nicholas Shaxson, the well-respected expert on the area of corporate tax avoidance has described the United Kingdom as a rogue state for its deployment of the so-called patent box system and has described it as an instance of naked capitalism in which states do everything they possibly can to reduce the tax burden on enormously profitable corporations. I put it to the Taoiseach that he is right. The "double Irish" was a scam that centred critically around the way in which profits were allocated by multinationals in the area of intellectual property. The Government reportedly closes off the "double Irish" and then sets up a new mechanism for corporations to reduce their tax obligations, precisely in the area of intellectual property. What is to stop such companies doing exactly what they have been doing up until now, that is, allocating vast amounts of their profits into this area of intellectual property, thereby artificially inflating its value to reduce their tax liability? This is what they have done thus far and there is no reason to believe they will do anything different under this patent box system. The evidence is this is precisely what they intend to do.

Is the Taoiseach aware The Irish Timesis now reporting on a discussion that apparently has been going on in the French media for a few days to the effect that Google is now thinking of closing its Bermuda operation and moving everything to Dublin? This is extraordinary when one considers that Google's Bermuda operation is a brass plate designed to avoid tax. Its response to the so-called closing off of the "double Irish" is to recognise that Ireland is a better tax haven than Bermuda under the proposals the Taoiseach has now outlined.

Extraordinarily, these proposals in the first instance give four years to multinationals engaged in massive tax avoidance in which to work out new schemes and scams to avoid paying tax and after that four-year period, when they have been able to re-engineer their tax avoidance plans and policies, there will be something akin to treasure at the end of the rainbow in the form of this patent box system, which yet again will allow them to use the value of intellectual property to avoid paying tax. Does the Taoiseach not accept this is extraordinary, in the context of meeting President Obama and so on, when at the heart of the world's capitalist system even they are demanding that multinationals pay a bigger contribution from their enormous profits in tax while Ireland is being embarrassed and humiliated at an international level for acting as a tax haven?

Moreover, instead of responding seriously by following an ethical policy in this matter and agreeing that Ireland should join in the increasing chorus of voices who find it obnoxious and obscene that vastly profitable multinationals should pay a lower proportion of their profits in tax than do ordinary workers, who pay approximately three to four times as much of their incomes proportionately in tax than do such multinationals, and five or six times as much in some cases, the Government, joined by the main Opposition parties, appears to be seeking and up to now has sought to continue to facilitate such corporate tax avoidance. Is this not shameful when Ireland, at the very least, should insist that such corporations pay something approximating the proportion of their profits in tax as does the ordinary worker? I believe they should pay more but would even this not be fair? Instead, the Government is facilitating further tax avoidance and is giving them the chance for four years to work out how they can avoid tax again under the new regime and at the end of that period is providing a new scheme for them to do precisely that, namely, the patent box. Is this not shameful?

As for the climate change discussions, in his response to Deputy Martin, the Taoiseach mentioned the issue of forestry and its role as a carbon sink and in ameliorating climate change. I have had lengthy discussions with the Minister of State, Deputy Hayes, on this matter because I strongly believe - and the Minister of State agrees - that to date, the State has underperformed spectacularly in terms of afforestation. This is a State in which the conditions for growing trees are more favourable than anywhere else in Europe but in which each year, we miss our afforestation targets by a long mile. These targets are missed when afforestation could be critical in helping us to meet climate change targets and to generate employment in spin-off industries, as well as deriving all kinds of value from tourism and amenity value and in developing renewable and sustainable energy. Although this is the case on so many different fronts, we are underperforming spectacularly in this area. It appears to me to be a matter of urgency, from every point of view, that something be done about this. Did the Taoiseach discuss this matter during his discussions on climate change and what are his views on it? For example, the McCarthy report identified that Coillte has half a million acres that it cannot afforest and which are doing nothing but gathering dust. The company states it either does not have the resources to invest in this land or that it would not be commercially viable from the narrow commercial model that Coillte operates. However, there are communities, co-operatives and environmental groups that would be very glad to get hold of some of that land to grow their own trees with all the positive benefits for local communities, climate change and all the rest of it. Is the Taoiseach thinking about this issue seriously, because this area has not being taken seriously to date?

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