Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Deputy Howlin raised the question of the weakness of the euro. Under the economic heading, the areas identified were weak global economic growth, trading relations with the UK, a loss of competitiveness, the importance of multinational corporations, the risk of unfavourable international tax changes, vulnerabilities in the banking system, turbulence in the euro area debt markets and monetary policy uncertainties. Each of those are dealt with in the report.

We do not know the result of the Italian referendum, which is a on a knife edge, as I understand it. The polls indicate the proposition is behind and Prime Minister Renzi has made his comments on this. It remains to be seen what the outcome will be. Clearly, when the lira applied, Italy devalued and devalued in respect of many of the industries that were there. We will see what happens. There are also uncertainties in other areas, for example, in Austria, where an election for the presidency is pending, and other areas of Europe are quite fragile. These are all potential impacts and risks of one sort or another on the euro and the eurozone. Even with regard to the Brexit position, different statements have brought about fluctuations in the strength of sterling versus the euro, which has had an impact on jobs here already. The purpose is not just to identify the risk, but to allow for proper discussion of people's ideas of how we might deal with these changing circumstances as they apply.

Deputy Smith raised the issue of section 110. There is a €50 million assessment but others say it might be much more than that when it eventually comes through. It remains to be seen what other instruments are out there that may have to be attended to. These things were quite complex in the beginning and were designed for a specific purpose. When they were not being used for that purpose, the Ministers closed them off.

Corporation tax is a national competence of each individual country. What the American Administration does or wants to do in respect of corporation tax is its business. The line of investment and the interest in investment into this country remains very strong. We have had evidence again today of two further investors making serious commitments to Ireland because they see the opportunity to have high quality young people emerging into work in their industries, as distinct from the issue that is always mentioned, namely, corporation tax. The incoming Administration, when it is appointed, will obviously make its decisions in so far as Ireland is concerned. We view the portfolio we offer in terms of our track record, our legal base, our technology capacity, our young people and the fact our corporate tax rate has been static, transparent and accountable right across the board.

The Apple case is being appealed on two fronts, one by Apple and the other by Ireland, on the basis that the Revenue Commissioners have never done sweetheart deals and have been utterly independent, accountable and transparent in the way they have done their business since they were set up. Obviously, the Commission has made its determination and a ruling that some of that money may well be due to other countries. We are only entitled to collect tax here on the economic activity generated here. There are no brass-plate companies here, the double Irish is gone, stateless is gone and we have introduced the new concept of the knowledge box at 6.25%, which is proving very attractive. The investment by one company of its intellectual property here distorted the GDP figures last year. However, this is fully compliant with OECD requirements and there may well be others who find this very attractive for further investment in intellectual property in Ireland, which would mean further research, innovation and development, which would obviously mean higher quality jobs coming on stream.

Deputy Ó Caoláin raised the point about Prime Minister May. Clearly, until Britain actually leaves the EU, it remains a full member. It will accept its full responsibilities and pay its full contributions. When Article 50 is triggered, that does not mean it has left and it will not have left until the exit process and transition process are completed, and it is unclear how long that is going to take. If the Prime Minister decides to change the rate of corporation tax that applies in Britain, that is the British Government's absolute right under the European treaties, as it is ours.

If corporation tax is reduced, that has to be made up for in some other way and that is a matter for the Government. Until such time as the definition of what we have to decide on, borders, the Single Market and economic and customs union - these are matters that have yet to be put up front - we have put several measures into the budget. They will not deal with everything and we are reconsidering matters such as access to low-interest credit, etc. There is a British Supreme Court decision due next week on the question being asked in the UK. Deputy Martin was right to say Brexit is the single critical issue.

With 67,000 cyber attacks against the American Government last year, it might be appropriate to have a discussion here in order that people might gain an understanding of what it is we should be doing. The Minister of State at the Departments of the Taoiseach, Foreign Affairs and Trade and Justice and Equality, Deputy Dara Murphy, will be happy to respond to that. We have given him extra resources. The Data Protection Commissioner has been properly facilitated in terms of remit, staff and so on. She has much better offices here in the city centre, which is good.

Long-term economic analyses are being undertaken all the time but we have not commissioned a Government analysis yet because the point on the horizon for which we should aim will not become clear until movement occurs. The sectoral work is quite detailed and I will brief the leaders as needs be. I have not commissioned a formal long-term economic analysis other than those that show possibilities as to might emerge from Brexit.

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