Mary Butler (Waterford, Fianna Fail) | Oireachtas source

Fianna Fáil supports the Government's motion to appeal the European Commission's decision that Ireland provided unlawful state aid to Apple. We believe an appeal is essential. We are a small country with a small population on the edge of Europe. Providing a competitive, consistent and certain tax policy is a key feature of Ireland's attractiveness as a leading location for foreign direct investment, FDI. The Commission's unprecedented and deeply misleading €13 billion decision on the Apple case is a direct challenge to that.

Approximately 700 US multinationals are located in Ireland, with some 187,000 people directly employed by FDI firms and a further 200,000 employed indirectly. All are potentially affected by the decision's implications. During the economic downturn, FDI companies were consistent employers across the country. The ruling  affects our relationships with other multinationals and we need to be careful about how Ireland responds.

In Waterford, thousands of jobs are dependent on multinationals believing that Ireland is a good place to do business. This must to be protected. On Monday, other Deputies from the south east and I attended a meeting organised by IBEC. It was the first ever meeting in the new Carriganore sports and conference facility, which is located on the outskirts of Waterford, and was attended by all business stakeholders in the south east. As I looked around the room, I was struck by the number of FDI businesses that were represented, namely, Bausch + Lomb, Genzyme, Teva Pharmaceuticals, Cartamundi, which was formerly Hasbro, GSK and West Pharmaceutical Services Ireland, which is building a factory 1 km up the road at which up to 250 people will be employed by late 2018. These jobs were important to the local economy during the recent recession and continue to be so. I was also struck by the number of FDI companies located in the south east, yet the region is underperforming in terms of employment statistics, bucking the national trend in the first quarter of this year with unemployment increasing by 0.6% instead of decreasing. Can we jeopardise our relationship with the multinationals? I do not believe so.

We had been expecting a decision from the Commission on this case, but the scale of the ruling means that it is in Ireland's strategic interests to be careful about how it responds. Government hesitation has only worsened the impact. The Commission's judgment marks a decisive overreaching of EU power into national tax matters. A strong, clear Government response is required. It is important for the country's strategic interests that we vigorously defend Ireland's reputation and independence.

The Revenue Commissioners are independent of the Government. They make tax rulings, including what was an honest one on this matter in 1991. It is important that there be certainty around Irish policy, including tax policy. It is also important that the independence of the Revenue Commissioners be upheld. As elected representatives, we must stand with the Revenue, which is a respected and independent State body.

Ireland has the right to protect its sovereignty on tax policy, as do other EU member states. This was a major issue when the Lisbon treaty was debated and the people voted in favour of a protocol on tax independence. Ireland must fight its corner to defend our national sovereignty and attractiveness for investment. In addition, we must continue to lead the way in progressing international efforts to curb tax avoidance.

It is disappointing and strange that the full EU ruling is yet to be published even though the Commission pressed ahead with the announcement. The Apple decision is essentially a power grab by the Commission. It marks a move by the EU to expand its power unilaterally and to use competition law on state aid to interfere with national tax matters. The astounding figure is designed to soften the ground before the controversial common consolidated corporate tax base, CCCTB, measure is relaunched later this year. It forms part of a broader agenda to set a common corporate tax rate across the EU. Our corporation tax rate of 12.5% is the envy of Europe. Ireland has done nothing wrong and is entitled to set a competitive tax regime to attract FDI.

The Revenue Commissioners fully applied Irish law as set out by the Oireachtas. The right of member states to set their own tax policies has been consistently upheld and affirmed in EU treaties. Ireland's tax sovereignty is important to Fianna Fáil and contributes significantly in attracting companies to locate here. It cannot be up for negotiation. With this highly political decision, the Commission is attempting to take control of Ireland's tax strategy by the back door. Those in Ireland who rushed to embrace the Commission's decision - not one of whom is present in the Chamber - need to spell out why they are prepared to cede that control.

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