Áine Collins (Cork North West, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on the motion. It is a very important motion albeit I disagree totally with what the Opposition is saying about corporation tax in Ireland. For an Opposition that believes solely in providing jobs and helping the less well off, I cannot understand why it would bring such a motion before the Chamber.

The corporation tax rate of 12.5% is the most transparent in Europe. The effective rate of corporation tax in Ireland is approximately 10.5% and the difference between that the corporation tax of 12.5% is research and innovation, which are crucial for growth. We have been very fortunate in Ireland. I live in a town called Millstreet and we have a company there called Alps. It has been there since Apple originally came to Ireland and set up in Millstreet. Apple moved to Hollyhill in Cork where it now employs more than 3,000 people directly and in excess of 6,000 people indirectly. It is a major driver for the whole region. While people talk about multinationals being attached to cities and not rural Ireland, Alps in Millstreet employs 600 people, which is very significant for an area like ours. All those people live within a 15-mile radius of the town and their employment supports families. They have been very fortunate in that their company has been able to grow during the economic downturn. In fact, most of the multinationals were the backbone of the economic recovery. People forget that they are supporting small businesses because they have suppliers and outsource a great deal of their work. They are very important in their support of transport companies, data analytics and so much more, which we sometimes forget. While it is brave to come to the Chamber and say these big multinationals should pay more tax, people forget that companies like Alps and Apple pay PRSI on every employee, contribute to local community events and help develop skills among people who often go on to set up their own businesses. Those businesses become another growth path for entrepreneurship.

Multinationals do not make a decision today to open in Ireland next week. They make that decision three years before it happens. What is important for them is consistency, stability and a guarantee in relation to the 12.5% rate. That is not the only reason they come to Ireland. They come here because of our skills, our English-speaking population and our extremely transparent regulatory system. Recently, we passed a new Companies Act 2014 which is accessible, easier to understand and makes it easy to do business here. Our regulatory system is very transparent as is our tax system. As someone who did a great deal of work in the tax system in a previous career as a tax consultant, I note that it is extremely complex. I commend the Revenue Commissioners who were probably the most progressive arm of the State in the innovation they brought forward in the 1990s. Their technology is superb and I have always found them fair, open and easy to deal with. The motion also refers to accounting standards in Ireland. The accounting and auditing standards in Ireland are the international standards. They are the same as they are around the world and they are very open and effective.

The important thing is stability, which is one of the reasons people come here. They want to open and expand here. I am very fortunate in the constituency I represent that Ballincollig is doing extremely well. We have had announcements from eSentire and Asystec, a home-grown Irish data management company. The reason they are there is that we also have the likes of EMC, which is a multinational employing in excess of 3,500 people in the area. These companies affect people who live down the road from me in rural Ireland and who travel in and out. People forget how important that is to the wider economy. It is very easy to make statements like the Opposition has made tonight.

One of the great things we have led with is the knowledge box, which is important in relation to stability. The knowledge box will be a great success and increase our tax take from multinationals.

Again, it is down to stability and security, as a knowledge box provides people with a guarantee on how to grow and progress when they are planning a number of years ahead.

I welcome the opportunity to contribute on this motion. The corporation tax rate is important to our economy, our people and jobs. Having a job, being respected and being able to grow and train are the most socially useful factors for anyone. Multinationals are superb at offering training.

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