Dáil debates

Wednesday, 7 October 2015

Corporate Tax Policy: Motion (Resumed) [Private Members]

 

7:30 pm

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-South Leitrim, Independent) | Oireachtas source

I thank Deputy O'Sullivan, Deputy Boyd Barrett and Deputy Joan Collins for this motion. I have made it clear that the 12.5% corporation tax rate should be left alone because we need to encourage business in the country. However, the rate should be adhered to. There is no good in Irish companies throughout the country trying to survive - they start off and go through the first three years of tough going after the company is set up first - only for multinational companies to come in and get sweetheart deals. Basically that puts them on an unfair footing. We should treat all our people equally.

As a country we have concentrated on the multinationals through the years. They are here and there is no point in saying otherwise. We need them at the moment. However, Ireland needs to have a strategy for when something goes wrong. When something goes wrong with a multinational - we have seen it in Limerick and other counties - it is like a bomb hitting an area. The devastation it causes is unbelievable for families, the Government and the entire area and it takes so long to replace those jobs. We need to keep concentrating on Irish companies, especially small and medium-sized enterprises, to ensure we create as much sustainable employment as possible. The reason is simple. If something goes wrong with a company of ten or 20 people and it does not survive, at least it is far less damaging than 1,000, 2,000 or 3,000 jobs going in one shock announcement.

The relevant people in Ireland should always remember one thing. Some multinationals thought they could abscond to other countries. Indeed, the European Union subsidised them to go to the other countries. However, one thing they found out is that our people and the education we have as a country are valuable. We can sell this.

If we adhere to the 12.5% corporation tax rate, that is fine, but we see figures such as 2%, 3% or 4%. It is like a corridor of money coming in and going out. Some of the figures we see look good but that does not create jobs. It is simply a paper exercise and paper exercises do not create jobs in this country. Basically, we need manufacturing or something else.

Concerning media reports suggest we may be held with a gun to our head by some multinationals on the pharmaceutical side with demands on the price of products in exchange for staying in the country. We have one of the most competitive tax rates in Europe. The 12.5% rate is a good thing but I do not believe in a payback with the implication that we buy the stuff from a given company "or else". We are a gateway and a corridor to Europe for many countries. There is a young population with good education here and we have many things going for us. We need not sell our souls even more in this way.

I compliment the Deputies once again for putting this together. As Deputy Ross said, Revenue has the powers to investigate all of this. The door is closing now. Europe has subsidised some companies to leave this country. I understand they gave €50 million to one company to go to another country in Europe and caused devastation in the Limerick area. Now, Europe seems to be closing the door on pulling everyone to a halt. I gather there are question marks over what has gone on in Portugal. There are question marks in many countries and it may be a good thing to have a common denominator.

I urge the Minister to ensure, no matter what we do as a nation and no matter how Europe tries to bully and intimidate us, as they have done for many years, that Ireland stands firm on the 12.5% corporation tax rate. We are an island. I believe companies should pay the 12.5% rate but I do not believe a company that comes here should get an advantage over an Irish person who is starting up.

I have heard various media reports about people from various countries suggesting that Ireland should look at this, that or the other and I have heard calls to harmonise the tax rate in Europe. We need our identity and we must hold on to that. Regardless of what has to be done, we need to ensure that we are not driven down a road in Europe by having to raise the rate. We need to create even more employment, especially in the countryside.

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