Paul Murphy (Dublin South West, Anti-Austerity Alliance) | Oireachtas source

On the letters being sent by IDA Ireland to 1,200 British companies, the talk of Mr. Seán Kelly, Fine Gael MEP, in the European Parliament last week about reducing the rate of corporation tax, the various attempts being made to get the European Medical Agency to relocate to Ireland and the idea of banking regulation, are these indications that the Government is prepared to engage in a race to the bottom with the City of London in a post-Brexit scenario in terms of financial regulation and corporation tax? Was this discussed with Mr. Barnier? Does the Taoiseach agree that such an approach would prove very damaging to people in this country and across Europe?

As the Taoiseach knows, a debate has restarted on the question of having a common consolidated corporate tax base in Europe. Despite its protestations in terms of being to the fore in the fight against tax avoidance, the Government is opposing one of the measures proposed in an attempt to tackle tax avoidance. Mr. Seán Kelly made an interesting contribution on the topic. With suggestions from the United Kingdom that it may reduce its corporation tax rate to 10%, he said it was important that member states had the flexibility to change their tax rate as needed, "particularly small countries that depend on foreign direct investment." He was clearly referring to or, at least, including Ireland in that regard. There are ridiculous comparisons being made such as that Blackrock can be the Kensington of Dublin in trying to attract finance capital from the City of London to Dublin. Is that the strategy the Government is pursuing?

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