Niall Collins (Limerick County, Fianna Fail) | Oireachtas source

The attempt by the Government to claim competitive levels are improving is belied by the statistics. The Minister referred to the World Bank's ease of doing business report. That report shows that Ireland's position has disimproved, falling a number of places to 18th position. The Taoiseach has also failed to meet his 2016 target of making Ireland the best small country in the world in which to do business. Budget 2017 did not contain any measures to close the competitiveness deficit we experience vis-à-visthe United Kingdom. For example, the UK has a much more capital gains tax rate of 10% which applies to entrepreneurial gains of up to £10 million. This is far in excess of the €1 million ceiling that applies to our higher rate of capital gains tax.

The chief executive of the Irish Exporters Association has said the reduced capital gains tax rate does not bring Ireland onto the racetrack, to use his words, when the UK applies a ceiling of ten times the level of our €1 million threshold. Dublin Chamber of Commerce has said the changes will do little to stem the flow of start-up companies moving from Ireland to the United Kingdom. Our capital gains tax rates, particularly for start-up companies, are a major issue which the Government must address.

The British Prime Minister has indicated that the UK intends to reduce its rate of corporation tax to 15%, which would bring it close to the Irish rate. Against the backdrop of Brexit, Ireland has a competitiveness problemvis-à-visthe UK. What does the Government propose to do to reduce costs to business, red tape, the administrative burden, workload and underlying costs to make Irish businesses more competitive?

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