Seanad debates

Tuesday, 4 October 2016

European Commission Decision on State Aid to Apple: Statements

 

2:30 pm

Photo of Colm BurkeColm Burke (Fine Gael) | Oireachtas source

I welcome the Minister to the House and thank him for his presentation. I come from the local electoral area where the Apple facility in Cork is based. It is a mixed area, in that a large section comprises local authority housing where at one time unemployment reached well over 50%. It is an extremely important facility in Cork, in terms of the contribution it is making to the local economy.

In real terms, about 18,000 jobs in Ireland are a result of Apple and all of the spin-off enterprises associated with it. At an average salary of €40,000, the contribution to the economy per annum is about €720 million. That shows the commitment Apple has given to Ireland. It came to Cork in 1980, stayed there, continued to expand and grow its facility and provided jobs for Irish people. Over 5,000 people now work in the facility in Cork, and there are plans to expand that to over 6,000. It is a significant contributor to the national and local economy because it pays commercial rates and local taxes.

We seem to ignore the contribution companies make at a local level in terms of paying rates. I produced a summary of the rate contributions of the ten largest companies in Cork. Cork County Council collects €118 million in rates, of which the top ten companies paid €27 million. In Cork city, out of €61 million collected, the top ten companies paid €9 million. One of the local authorities in Dublin collected €314 million in rates, of which the top ten companies paid €77 million. These companies are making significant contributions, not only to the national but also local economies. The rates being collected contribute to providing local services, whether that involves ensuring local authorities can deliver amenities, housing and other things. It is important that we recognise that fact.

In addition to the employment Apple is providing in Ireland, it has also agreed to proceed with a €850 million data centre in Athenry, which is another significant investment. Apple has made a major contribution to this country. There are 18,000 jobs in Ireland as a result of its investment.

Sinn Féin opposed Ireland joining the European Union. At the time, there were 1 million people working in the country. There are now 2 million people in the country working, which is a result of our progressive policies in regard to attracting companies like Apple and making sure they received the necessary support to stay and provide jobs. That is an extremely important point. We must keep in mind the contribution these companies are making and will continue to make. It is important that we appeal the decision.

Unlike what my colleagues say, I believe that if the Irish Government did not join in this appeal Apple would have appealed it. The required money would not have been available. Apple will appeal the decision all the way. Ireland has to appeal the decision because we must protect our sovereignty regarding making decisions on tax policy. I fully support the Minister and Government in lodging the appeal.

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