Dáil debates

Wednesday, 7 September 2016

Government Appeal of European Commission Decision on State Aid to Apple: Motion

 

4:25 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak in the debate. Over the course of the morning and early afternoon, we have heard diverse opinion on the ruling by the European Commission. There are three strands to it. Since the 1970s all aspects of the State have been actively seeking foreign direct investment into this country. To be fair, they have marketed themselves well and have competed well with other countries to get large corporations into this country. They have been constantly looking at ways of getting them in. This has not only been done through corporation tax. They are coming in because of our education system, employees and so on. We have benefitted remarkably from it.

Let us consider the ruling last week from the European Commission. We have been looking to Europe since we joined the Common Market in 1973 as well as at the benefits that have come from being part of the Single Market. The Commission has made different rulings. It has made this ruling but it is at variance with what I believe Europe should be. Europe is supposed to be a collective, doing the best for each member state. The Commission has made a ruling which has challenged the integrity of our taxation system and the integrity of the way we have operated a taxation system over the decades. We have to challenge it strongly and cohesively. The ECSC was set up after the Second World War. The idea was to bring Europe together, protect member states and give everyone a fair chance. We have ponied up to that. We have marketed ourselves within Europe in this regard.

We have challenged this ruling by the Commission but what is the rationale behind Europe challenging us? Is there a political dimension to it? I know some people in Europe have said that they have interpreted the law as it is but is there a political dimension to it? Is there a greater issue along the lines of Europe versus the USA?

Fundamentally, Ireland has bought into each treaty. It has bought into Europe in a major way to ensure we have a better understanding and quality of life for our citizens. By and large, it has worked. However, there comes a point when we have to challenge all the rulings. Rulings have been handed down by the European Commission in other aspects of life and we should challenge those as well. As a society, we should be looking at how they have come about and how the Commission has been given the space to make a ruling like this.

The operation of Apple in Ireland has been of enormous benefit to Cork. One of the major regrets I have is that back in early 1980s Apple came to both Cork city and to Millstreet in north Cork but then it ceased the operation in Millstreet and moved the lot to Deputy Kelleher's constituency of Cork North-Central. It has grown and has 6,000 employees.

Let us consider the others corporations throughout the country. We have been challenging other countries. We have been challenging the best of them and we have come out on top.

I believe this decision is fundamentally wrong. We have collected the taxes due to the Irish nation based on the activities within Ireland. How can they undermine our taxation system? As our spokesperson, Deputy Michael McGrath, so eloquently put it this morning, it has stood the test of time in good times and bad times since 1923. We have to be sincere about standing up for our rights as the Irish nation. We have to be sincere about showing that we have done our business, as have the Revenue Commissioners. Of course it would be easy to take €13 billion and spend it on any number of necessary projects but it is not as simple as that. As a society we need to ensure that we challenge Europe. We must ensure that we do not take diktats from faceless bureaucrats on a raft of issues that affect ordinary citizens in this country.

I support the motion to appeal this decision because I believe it is the right thing to do. We should be clear that we have corporation tax, a system and a fantastic workforce. We should continue to attract the best companies into the country because not alone do the best companies directly employ people but there are spin-offs throughout the country as well. Anyone in areas where there is foreign direct investment can see the spin-offs. We have to stand by our State, whether in the guise of the Department of Jobs, Enterprise and Innovation or IDA Ireland or any other agency of state. They are working in the international market fighting for Ireland. We have to do that but we also have to make clear to the European Commission that there is no sense in what it did last week.

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