Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Pimp out our country: is that the best the Deputy has to offer? I am proud of the efforts of successive Governments to attract investment into our country. If the best that the Deputy can offer in a serious debate is to describe this as "pimping out our country" and if the only reference he can make to jobs is the phrase "anti-jobs", he is doing a grave disservice to the role of international investment in creating jobs in our country and sustaining communities. The only reference I heard in the contributions by the Deputies on the role of these companies in creating jobs was when Deputy Pearse Doherty used the phrase "anti-jobs". Deputy Boyd Barrett and Deputy Paul Murphy did not make a single reference to employment or the fact that the corporations to which they refer are employers in our country. Those same companies play and have played a valuable role in creating the tax revenue that has allowed for the funding and improvement of public services. They have played a valuable role in creating jobs in our country. If the best Deputy Doherty can offer is to describe this as "pimping out our country", he does not recognise the value of many of the good jobs that have been created by the companies in question.

Reference was made to a number of contributions. I do not believe it is unpatriotic to have a debate; I have never suggested that. It is important that we have an open debate on any element of public policy.

I would never question the motive of any Deputy in doing that, but I will challenge his or her language, as is done to me, and I will challenge the intent, as is done to me every time I make a point on why I support Government policy.

Let us look at the report of the Revenue Commissioners and what Deputies have said in response to it. The report did make the point that 13 of the top 100 companies pay an effective rate of tax of just 1%. There are explanations for that and on the engagement between the earnings of those companies, how they pay tax abroad and the role of exemptions that are available in the tax code for economic activity. However, what none of the Deputies mentioned when referring to the report is that 79 companies paid an effective rate of tax of 10% or more and almost two thirds paid rates in excess of 12%. Reports published by the Revenue Commissioners have pointed to the fact that our effective tax rate moved to between 9.7% and 9.8% and for 2012 and 2013 the effective tax rate was 10.1%. They are the other things in that report that were not mentioned by any Deputy quoting from the report.

The other thing that was not mentioned by any Deputy who made reference to corporation tax and what is happening with the trends is the fact that corporate tax receipts have grown and that was listed in various reports, including the Coffey report, which was commissioned and published by my Department. The Coffey report makes very clear that since 2000, corporation tax receipts have moved from €3.9 billion to €7.35 billion. In all of the commentary on corporation tax so far in the debate no account has been taken of the role played by the companies that pay those taxes in creating very important jobs within the economy or the fact that corporation tax receipts in recent years have increased, so we are raising more taxes from companies that are subject to corporation tax. Neither did the commentary take account in any way of the fact that the companies that have been referred to here by name by some but not all Deputies employ people in this country and the general sector overall is a critical employer within the country.

A specific question was asked about Article 12. From the way that was referenced by Deputies one would think Ireland was the only country that is not in it. I will explain why we are not part of that provision at the moment. Not only are we not part of it but countries such as Denmark and Germany are not part of it either. One of the reasons for that is because work is still under way at OECD level to determine what profits, if any, would be attributable to a new permanent establishment created under this test. As we have to play a role then in providing clarity to companies so their tax liabilities can be generated here in Ireland, once we are clear how this will be calculated I believe that we will be happy to include this test in our tax treaties but that is the reason that article has not been triggered.

As to the allegations that have been made that this or any Government was involved in deals with any particular company, I repeat again that this and any other Government that has preceded it did not make agreements on tax policy for any individual company. We tax for the economy in its entirety or sectors of the economy. That law is then applied impartially by the Revenue Commissioners. While some Deputies have either doubted the intention behind it or the impact of moves that have been made to dealing with stateless companies and winding up the double Irish agreement, all of those decisions were taken because we want to be in a place where we have a tax code that is a source of competitive advantage and we do so in a way that meets the growing international consensus regarding how these matters will be dealt with, and I will do that. However, of course if any job is lost or if any employer were to change the investment it has in this country because of any change that was made, some of the Deputies who are in here tonight criticising what is happening would also be the ones criticising job losses.

See this speech in context