Dáil debates

Wednesday, 7 September 2016

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

 

4:35 pm

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

I appreciate the opportunity to speak on the motion. A few years ago when there were referendums on treaties and leaflets were coming in the door, it was interesting to see the suggestion that we were going to be at the heart of Europe. We wanted to be in the kitchen because Europe was so good for us. It is interesting to see - it is actually great to see - that many of these people right across the House have finally decided to come around to my thinking when I questioned everything about Europe. They are now becoming eurosceptics because of one ruling.

I do not believe Europe should have any say whatsoever in our tax affairs. I do not believe that someone such as Jean Claude Junker should even be commenting. It is time for the Irish people to stand up. It is interesting to hear the Taoiseach talking about Ireland's sovereignty. However, unfortunately when bank bailouts and deal-breakers were being done, we were not so fond of putting on the Irish jersey.

I would like to mention a fact about this ruling that applies regardless of whether it is appealed. The position at the moment is that it will be appealed. I have been looking at a case that is under appeal. It has been on the go for 12 years. The whole thing about getting an answer is a way of fobbing us off because this will be kicked down the road. That is the reality. The proceedings of the European Court of Justice go on and on. We will not get a decisive answer in the near future. It will cost a great deal of money for our nation to appeal this judgment. We know that Apple is appealing it. If I go to court here as an Irish business person, will the Government offer to help me? No, it will not. It has never done that. It has acted in an unusual manner in this case.

I firmly believe that sweetheart deals were made. At the moment, Europe is trying to use the side door to attack our tax policy. We should not entertain that, end of story. We should tell Europe that we will run our affairs as we see fit. We should then sit down with the likes of Apple to sort out how much tax they are paying and how much money they owe us in reality. We cannot bring anyone back to 1991. I firmly believe money is owed. It galls me that I have seen Revenue bringing small and medium-sized companies to court and basically putting them out of business, while other companies have been getting favourable rates. That has been especially evident since the recession hit. The Irish companies to which I refer employ people throughout the country. Every one of us knows that multinationals are important to this country, but we cannot allow them to pay just €50 in tax on every €1 million they make in profit. That cannot be tolerated at a time when Irish companies that employ many people are not getting the breaks they should get.

We need to cut to the chase in this country. We have to be competitive with France and other countries. If we have to bring the tax rate back to a real rate of 6%, that is fine and we should do that. What is good for the goose is good for the gander. Irish companies should be treated the same as any of the multinationals that come in. Irish companies around this country employ more than 1 million people. These small and medium-sized enterprises have not been given the favouritism that has been given to some multinationals. I fear that this is the tip of the iceberg when it comes to looking at things. We are setting a legal precedent by letting Europe look at something belonging to us - we are going to appeal in this case - while maintaining at the same time that we have our own autonomy over that matter.

I want to make it clear that this is not about state aid. Europe is going in the side door to take on our tax regime. Michael O'Leary was right when he said we should tell Europe where to go. I think there is money owed. We have to sit down with the likes of Apple to sort out a deal. At the moment, ordinary people are paying tax of between 40% and 50%. Companies are paying tax of 12.5%. Over the last week, I have heard references to the possibility of inward investment in companies in Ireland being affected even though no one is questioning our 12.5% tax rate. If we do not make sure that someone who sets up a company in Donegal or Kerry and creates two or three jobs is entitled to the same benefits and sweetheart deals as anybody else, we will not encourage entrepreneurship in our country. The Government needs to get it into its head that if every company in Ireland were told it could pay just €50 on every €1 million in profit, it would have no reason not to employ many more people. That is what any of us would do in such circumstances. The Government needs to wake up to that reality.

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