Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Quite a number of issues were raised at the British-Irish Council. I cannot recall this issue being raised but I will check the minutes of the meeting for Deputy Barry. I can confirm that it has been very clear for a very long time and enshrined in European treaties that tax matters are a matter for the individual competence of each country. We set out our corporation tax rate at 12.5% many years and we are not changing that. It is not going up and it is not going down.

However, in recognition of the right of any country to move its tax rate, we did support a situation whereby the much higher British tax rate might be lowered in Northern Ireland to make the island of Ireland a more attractive economic entity in its overall context for foreign direct investment. The former British Prime Minister devolved that authority to the Northern Ireland Executive if it wished to implement it and that is what it decided to do. In the run up to the referendum, the former Chancellor of the Exchequer, George Osborne, said that the British Government might reduce the corporation rate in Great Britain to boost the economy. We are not entering any bidding war. Our rate is 12.5% and will remain so.

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