Dáil debates

Wednesday, 7 September 2016

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

 

6:35 pm

Photo of Martin HeydonMartin Heydon (Kildare South, Fine Gael) | Oireachtas source

Previous speakers, notably the Minister for Finance and the Taoiseach, described the Commissioner's decision in the Apple case as wrong and damaging to the country. The messages from many of today's speeches were stark and clear. The Government is taking a strong line on this matter for good reason. The Commission's decision is, in some respects, an attack on the country and the Revenue Commissioners, a vital and independent organ of the State. It is also an attack on Ireland's reputation as a country in which to do business and one which conducts its affairs in a legal, fair and transparent manner.

I have been shocked by some of the contributions by Opposition spokespersons and some of their recent media comments. Certain Deputies who oppose everything connected with the European Union suddenly want us to roll over and accept the Commission's ruling that Ireland has broken the law, which is not the case. They believe we should collect the money involved and allow the country's reputation to be flushed down the toilet, thereby affecting future business. They would have us sell our reputation for 30 pieces of silver.

Let me put in context the €13 billion sum involved. This figure amounts to only two years of direct corporation tax collected from the foreign multinational companies that employ people here. It does not include the PAYE contributions made by hundreds of thousands of citizens who work in such companies, including many of my constituents who are employed by foreign companies that have invested here. These employees have important jobs and spend money in their local communities, which creates indirect employment. For 30 pieces of silver, we would send a message to foreign investors and employees that if the European Union tries to bully us on our corporate tax rate and attempts to change the rules retrospectively, we will roll over and allow it to do so. This is a shocking approach from parties that describe themselves as nationalist and it is one that I will not support.

As the Commissioner stated, the €13 billion would not be available to Ireland. Although we would collect it, other countries would be entitled to claim a share of it from us. This is proof that the Commission accepts that the tax was not ours to collect. Apple's intellectual property is based in the United States. The €13 billion would be moved out of Ireland because taxes would be due to much larger European countries. Certain Deputies want to sell our reputation for money that we would ultimately not receive.

It is wrong that a company should pay only €50 on a profit of €1 million and I would not condone that for one minute. However, we must be clear about where the problems lie and they do not lie with the Irish tax system. They are as much to do with the US tax system which allows companies that have been incorporated to hold money offshore. Ireland is working with the OECD and other countries to address deficiencies in the tax system. It is incorrect to suggest that Ireland plays hard and fast with the rules and we cannot allow our reputation to be destroyed.

On inward investment, IDA Ireland client companies directly employ 187,000 people. IDA Ireland estimates that one in five jobs in the economy is directly or indirectly supported by inward investment.

The Taoiseach outlined the history of State economy policy. In the first couple of decades after independence, we tried hard but ultimately failed to become an industrial country. At that time, the economy was based primarily on agriculture. T.K. Whitaker and other people with great vision realised that the future lay in opening up the economy to foreign investment and playing to our key strengths as a small island nation on the edge of Europe. We should not make any apology for continuing to pursue that policy.

Apple is a company that employs 6,000 people in Ireland. Those involved in the company see the value of the Irish people, the skill-base we have and the proven track record in delivering a good return on investment. They see a proven young talented and hard-working workforce and a positive business environment as a result of the hundreds of measures put in place through the Action Plan for Jobs since 2012 that have made a real difference, never mind access to European markets.

We cannot allow any damage to our reputation. Earlier Deputy Seamus Healy referred to Martin Shanahan. He was selective in what he said. From what I heard, Martin Shanahan of IDA Ireland said that this was ultimately very damaging for our reputation and that is not a good place to be.

Europe has had positive influences on this country and I consider myself pro-European. However, if the people in the European Commission want to make a habit of trying to enforce retrospective actions and attack us based on present day rules over something that occurred 13 years ago in a very distorted manner, then they can expect a fight back from Ireland. This is an opportunity for us, as a Parliament, to send a clear message to the effect that Ireland does not offer sweetheart deals, Ireland fights its corner for foreign direct investment in a fair and transparent manner and it will continue to do so in future, working with the OECD and other countries.

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