Billy Kelleher (Cork North Central, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak on this motion regarding an appeal of the Commission decision stating that Ireland acted unlawfully with regard to state aid due to its tax rules and dealings with Apple. Some of the amendments to the motion from some Opposition parties look more like a philosophical debate at a political summer school, what with socialist republics and everything else they want to establish. In the meantime, we have an obligation, first and foremost, to protect the integrity of the Revenue Commissioners and the industrial policy pursued by the country for the past 40 years in attracting multinationals and foreign direct investment.

That policy has been a success story. However, according to some in this debate, it is taken for granted that all multinationals would locate in Ireland just because they felt it was a nice place. This investment is actually won by IDA Ireland’s diligence, the proper open and transparent corporate taxation system, the political consensus around the 12.5% corporate tax rate and, by and large, the political stability Ireland has enjoyed for many years. These factors are coupled with other areas of importance such as the fact we are English-speaking, we have historical connections with the United States and many chief executive officers in America come from Irish descent. While the latter might be seen just as an issue of historical importance, at the same time it allows us access to corporate boardrooms across the globe. There is significant competition in attracting multinationals, not just in the European Union but across the globe with the Singapores and Puerto Ricos which are consistently selling their countries as places for multinational and foreign direct investment. Ireland has been the success story in this regard both in the European Union and globally. That in itself must be protected.

I have an interest in this issue because Apple is located in the Cork North Central constituency. Everyone watching the Commission’s investigation into this issue expected some form of an adverse finding. Obviously, the scale of the revenues the Commission said we should collect from Apple is enormous and took us by surprise. However, the Government should not have been surprised by the adverse finding. I was taken by surprise by the Government’s sixes and sevens approach several days after the finding. It seemed to be incapable of coming out with a unified voice standing up for Ireland and the integrity of the nation, the Revenue Commissioners and our industrial policy. It seemed for a while that we were apologetic that we have had such success with foreign direct investment over the past 40 years. That undermined the integrity and perception of Ireland globally. It also gave an opportunity to our detractors who would love to see Apple and other multinationals located in their countries. For the Government to be lacklustre and incompetent in its initial reply was unacceptable, particularly due to the fact it was forewarned since 2014 that there would be an adverse finding in the Commission’s investigation into state aid rules.

The European Commission has overstepped the mark. It is using competition law and state aid rules to get the common consolidated corporate tax base, CCCTB, on the agenda through the back door. There is no doubt that there is a political bureaucratic agenda in Brussels to bring about a common rate in the CCCTB. That in itself will benefit other countries because it will undermine our capacity. We have challenges as a peripheral nation with a small population. One of our strengths has been our ability to offer certainty with the corporation tax rate, quality English-speaking graduates, a good environment and our historical connections with the United States and Europe. However, there can be no illusion that our corporation tax rate itself is of significant importance in competing for foreign direct investment on the international stage. It must also be borne in mind that there are other countries which have lower corporation tax rates and are actively attracting multinationals.

It beggars belief that some of the amendments to the motion dismiss the success of foreign direct investment in this country. Sinn Féin, the Socialist Party and People Before Profit are all of the view that somehow multinationals would just come to Ireland anyway. That is not a credible position to hold if one has any knowledge of how the corporate world works and the international competition in attracting foreign direct investment.

First and foremost among the reasons we must appeal the Commission's decision is the need to protect the integrity of the Revenue Commissioners in dealings with all entities under Irish tax law, whether they are individuals or multinational companies. It is extremely important that companies and individuals have certainty that they will be dealt with by the Revenue Commissioners on the basis of tax law. Cé mhéad nóiméad atá fágtha agam?

See this speech in context