Dáil debates

Wednesday, 7 September 2016

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

 

7:55 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I welcome the opportunity to contribute to the debate. Perhaps the only thing for which we must thank the Independent Alliance is the forcing of the debate in the Dáil on the issue today. I listened to the earlier speeches by the Minister for Finance and by the Taoiseach on the serious reputational damage done to Ireland by this ruling. They spoke about the damage done to Ireland's credibility in international tax debate. The question must be asked then why the Government was so ill prepared for this ruling. Following the announcement, the Government was at sea. Emergency Cabinet meetings were held but they have been called "non-scheduled" meetings, which is a play on words and more spin. Bilateral meetings were held between the Minister for Finance and various Independents and between the Taoiseach and various Independents. The Independents were unsure what they would do about the situation and were on the verge of bringing down the Government. We knew that Apple was under review and that a decision was imminent. Perhaps the ruling was a few weeks earlier than expected, but we know from the Minister that he himself had been informed privately of the decision a week before it was public knowledge. Given the severity of the situation, it must be asked why the issue was not discussed at previous Cabinet meetings and a response formulated based on either outcome. The Government talks about the importance of certainty and confidence with regard to foreign direct investment.

Certainty and confidence are important. However, they are also important for our indigenous businesses and SMEs. The key thing here is the independence of the Revenue Commissioners.

Anyone looking in over the past week would not have confidence in collective Cabinet responsibility and a strong Government that is prepared to stand up for the autonomy of its tax affairs. We must remember that in the Lisbon treaty, the Irish people voted on the protocol to have autonomy in respect of our tax affairs. The IDA has been extremely successful in attracting foreign direct investment. We have 187,000 jobs directly and 200,000 jobs indirectly. Last year alone, foreign direct investment produced €6.6 billion in tax receipts. When I think of my constituency, I think of Abbott, Alexion, Covidien and Alkermes and all the jobs they created directly and the spin-off jobs. We should never take this for granted. Some people on the left are saying "sure, they'll stay here anyway; hey don't need any certainty." I think of the IDA park in Mullingar, which the previous Government and this Government have shamelessly ignored in terms of investment. I listened to "Morning Ireland" and Martin Shanahan talking about how this decision will make it more difficult to attract foreign direct investment. Were we not to appeal the Apple decision, it would be far more difficult.

We listen to Sinn Féin and the AAA-PBP whose argument is disingenuous. Their argument is that the €13 billion is there for us to take. They like to think perception is now reality. We know that the Commission's assessment claims that the head office existed only on paper and that this could not have generated such profits with no employees, no premises and no real activities. We know that if this appeal is not successful, not only the US but other European countries will be first in line to claim their share of the money.

I commend the motion, which we are happy to support, but in the words uttered by the Minister of State at the Department of Health, Deputy Finian McGrath, when he used to sit in this seat here, it is time the Government upped its game because given the last two weeks, we would not have a lot of confidence in it.

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