Michael McGrath (Cork South Central, Fianna Fail)
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3. To ask the Minister for Finance the progress made in setting up the escrow account for the money owed by a company (details supplied); the timeframe for the establishment of the account; the timeframe for the first payment to be made to the account; the fines that are likely to be imposed on the State for failing to comply with the Commission’s decision; and if he will make a statement on the matter. [44938/17]

Michael McGrath (Cork South Central, Fianna Fail)
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At the end of August last year the European Commission issued its state aid ruling in regard to Apple. Since then, the money, €13 billion, plus interest, has not been collected. While I fundamentally disagree with the European Commission's state aid ruling, I believe it must be respected. When will this money be collected and lodged to the escrow account as promised?

Paschal Donohoe (Dublin Central, Fine Gael)
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Ireland does not accept the Commission’s analysis in the Apple state aid decision.

Bernard Durkan (Kildare North, Fine Gael)
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Hear, hear.

Paschal Donohoe (Dublin Central, Fine Gael)
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However, we have always been clear that the Government is fully committed to ensuring that recovery of the alleged Apple state aid takes place without delay and we have committed significant resources to ensuring this is achieved. Irish officials and experts have been engaged in intensive work to ensure that the State complies with all its recovery obligations as soon as possible and they have been in constant contact with the European Commission and Apple on all aspects of this process for over a year.

We have made significant progress on the complex issue of establishing an escrow fund. Given the scale and bespoke nature of such a fund, the precise terms are subject to confidential and commercially sensitive deliberations and I cannot at this point be drawn into a public commitment on timeframes as this could undermine the State's position, save to say that it will take place as soon as possible.

The announcement of the intention to launch infringement proceedings against Ireland is a wholly unnecessary step by the Commission. No fines will occur to Ireland on foot of infringement proceedings under Article 108(2) of the Treaty on the Functioning of the European Union. Assuming the Commission can successfully convince the European Court of Justice that Ireland has not made sufficient progress on recovery, the result will be a declaration from the court that Ireland has not complied with its treaty obligations.  The Government takes this very seriously and we will do everything in our power to defend such action.

Fines may occur on foot of a second court action taken by the Commission for Ireland’s failure to have complied with a judgment of the European Court of Justice under Article 260(2) of the treaty. The level of fines is at the discretion of the court and the purpose behind them is to ensure that member states takes their treaty obligations seriously.

The Government has made clear that we respect the rule of law in the European Union and we will continue to take all necessary steps to ensure that the need for such action and the levelling of such fines does not arise.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Minister for his reply. I do not understate that there are many complexities involved. It is not a case of simply exchanging bank account details and money being transferred. However, in delaying this process the Government has given ammunition to those who seek to target Ireland in regard to corporation tax. The common consolidated corporate tax base, CCCTB, proposals have been refloated by the European Commission, along with proposals to tax digital companies based on turnover and President Juncker has been talking about removing the veto in regard to corporation tax matters.

These are very serious issues. The key issue is that by not meeting the European Commission's deadline for collecting the money from Apple we have provided those who seek to target us with unnecessary ammunition. I do not understand why the Minister will not say when he expects the money to be paid over. The money should be collected by Ireland pending the outcome of the appeal. Fianna Fáil supports the Government's appeal but respects the decision that was made and the money should be collected pending the appeal. Why can the Minister not say when that will be done? Can he update the House on the sum of money involved?

Paschal Donohoe (Dublin Central, Fine Gael)
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I am not sure on what evidence the Deputy can conclude that I am in any way delaying on this issue. In terms of relevant timeframes, it has previously been the case that when a member state has co-operated in good faith with an understanding or direction from the Commission, the Commission will actively engage with the member state for at least two years before initiating proceedings in that regard. The Government sought an extension from the Commission to deal with this matter but it was not granted. One reason the negotiations are so sensitive is because of the amount of money involved. When the fund is set up, as it will be, it will be one of the largest of its kind in the world. The fine is the largest of its kind that a government or company has had to deal with. Because of the complexity of the matter and because the Commission has indicated that other jurisdictions might be able to access the money in the future, before the money can be received we must have a very comprehensive agreement in place in respect of the operation of the escrow account. To have the fund set up, the Government had to go through several procurement processes to ensure compliance with European Union law. That has all taken time and that is the reason I regret the action taken by the European Commission on the issue.

Bernard Durkan (Kildare North, Fine Gael)
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Hear hear.

Michael McGrath (Cork South Central, Fianna Fail)
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As the Minister noted, the Commission announced its decision at the end of August 2016. There was a deadline of early January 2017 for the collection of the money. I do not recall the Government saying that was wholly unrealistic, which now seems to be the Minister's central point. He accuses the Commission of bad faith and says that countries would normally get two years following a ruling such as this to collect the money but the Commission has instead initiated infringement proceedings. The Minister is giving further ammunition to the Commission by not even laying out a roadmap for the collection of the money. There are tendering procedures involved. Tendering started in July in regard to the NTMA, as I understand it. Can the Minister provide the House with an estimate of when the decision will be respected in terms of the collection of the money and it being put into an escrow account on a temporary basis pending the appeal?

Paschal Donohoe (Dublin Central, Fine Gael)
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I have indicated a timeline to the European Commission for the potential resolution of the matter. One of the reasons I cannot publicly indicate the likely point at which it will be concluded is we are having discussions and negotiations with a company in this regard and those have to conclude in a manner satisfactory for both parties. I aim to conclude the process as soon as possible, collect the money and, while the money is collected and deposited in an escrow account, continue with the action that Ireland needs to take to defend its name in respect of this issue.