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

Data centres play an important role in the retention and attraction of foreign direct investment into our country. The policies his party is putting forward on personal taxation look to increase the marginal tax rate for people who I accept are well paid, but our levels of marginal taxation play a role in ensuring our country can be competitive. They make a contribution to it and the Deputy's party is against any change in those areas. Deputies Ring and Lahart are right to call out the contribution foreign direct investment and large employers make to our country, but the Deputy sees large employers, entrepreneurship and income as something to be taxed and extracted.

I believe in enterprise in order to support companies created here and companies that come to Ireland. We must have competitive policies that can make a difference. While I understand the appeal of the policies the Deputy has put forward, especially with all our country has gone through in recent years, they are a threat to that enterprise.

I noticed what Deputy Ring said about the impact and role of one company, McHale. It is a fantastic Irish company. What does it do? It was set up in the west of Ireland and sells its equipment and the fruit of its engineering brilliance all over the world. One could also look at Combilift, a similar company in Cavan and Monaghan. Those kinds of firms depend on a competitive regime here in Ireland in relation to things that Sinn Féin wants to change.

I wish to comment on where we are with the OECD changes and what is happening here. The Exchequer returns for November, which were shared a short while ago, reveal a position on our borrowing and tax collection that is ahead of and much improved on where we could have thought we would be a year ago. The reason for this positive position is that we came into a pandemic with an economy with lots of employers in it and with public finances that were in good condition. I accept, in making those points, that there are many other things in our country and society on which many people still want us to do better. However, we now know the value of an economy with its public finances in order, with many employers and with low levels of credit. We are trying to put this pandemic and its economic effects behind us, but it is difficult. Recent days alone have shown how difficult it is.

On the amendment before the House, I have already said that when I have information on the further impact this OECD regime may have on our corporate tax collection and on our economy in the future, I will share it with the Oireachtas. Deputies Doherty and Boyd Barrett are right to look for that and I will share it. We are not at the point at which we have further detail available to allow me to give the clarity for which the Deputies are looking. The corporate tax collection from which we now benefit, due to the companies mentioned by Deputies Ring and Lahart, is playing an incredibly important role in allowing our country to make the steps towards recovery from this pandemic. However, I emphasise that we cannot be in a position in which we depend on that corporate tax take and those receipts to fund the progress we want to make in the future. If this pandemic had not happened - one can say this about many things - our public finances would now be in balance or in surplus, which is what we need if we are to reduce, over time, our reliance on corporate tax. Thankfully, our corporate tax receipts are growing at the moment, but this is happening at such a pace that we need to ensure over-reliance on such receipts does not become an issue.

Deputy Boyd Barrett raised the issue of the difference between the total income and the taxable income of company. He was right to say there is a difference. The Deputy and I debated this on Committee Stage. I will repeat what I said to him in committee - the difference between the income to which he refers and the taxable income upon which the tax is levied can be explained by the use of things like capital allowances and by how business expenses are recognised. These standard features of corporate tax regimes all over the world relate to expenses that are relevant to the location of these companies in Ireland. That, in turn, leads to the building, investment, equipment and construction that create jobs and income here. I do not accept this amendment. As I have said previously, I do not believe reports in finance Bills are the way we should be looking to get further information on matters. When the information is available to me, I will share it with the Oireachtas.

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