Aodhán Ó Ríordáin (Dublin North Central, Labour)
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Question 52: To ask the Tánaiste and Minister for Foreign Affairs if he will act on the recent publication by Dr. Sheila Killian at the University of Limerick, Driving the Getaway Car? Ireland, Tax and Development, written in co-operation with such prominent non-government organisations (details supplied); and if he will make a statement on the matter. [7054/11]

Jan O'Sullivan (Limerick City, Labour)
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I welcome the interest among Non-governmental Organisations and academic researchers in the international debate on financing for development, and in particular on the issue of taxation and development. Official Development Assistance (ODA) is essential, both as a direct contribution to the fight against global poverty and as a catalyst for other development funding. However, development is about much more than aid. Sustainable change and inclusive economic growth will not be achieved unless countries themselves can take the lead in their own development. It is worth noting that, at present, domestic revenue raises about ten times more in development financing for Africa than does ODA.

I have seen the report referred to by the Deputy. Notwithstanding its title, the report looks at some serious and important issues. While the Minister for Finance has responsibility for questions in relation to Ireland's taxation system, I would point out that Irish Aid, operating from within my Department, cooperates closely with the Department of Finance and the Revenue Commissioners in providing assistance to developing countries to build up their tax systems and in Ireland's engagement on global policy issues in this area.

Efficient and fair tax systems in developing countries are essential to the fight against poverty, and the achievement of the Millennium Development Goals. It is increasingly being recognised that tax evasion and avoidance, and illicit financial flows, represent a major obstacle to domestic resource mobilisation in poor countries, and are undermining development efforts. Ireland has engaged actively through the European Union, the Organisation for Economic Co-operation and Development, and the United Nations to ensure that effective multilateral action is taken to tackle these practices. A number of important recommendations are emerging, which will be considered in the coming period.

More generally, the Government's approach to these issues will involve a strong commitment to the aid programme and to the 0.7% GNP commitment, which we will strive to meet by 2015. We are firmly committed to the Millennium Development Goals, and to ensuring that Ireland's development programme is rigorously focused on the poorest people and communities, especially in sub-Saharan Africa, and on achieving results in the fight against global poverty and hunger. An important element in this is the building of capacity in our partner countries to raise their own revenue in a fair and efficient way, and to provide effective and accountable management of public resources. Through the Revenue Commissioners, for example, our cooperation with the Rwanda Revenue Authority is already being used to develop a tax compliance risk assessment system which has the potential for application in other developing countries. We are also supporting the African Taxation Administrators Forum in building capacity across the continent.

I believe that Ireland must play its role, as a developed country, in responding to the opportunities which now exist, through the OECD and in cooperation with developing countries, NGOs and the private sector, to create greater international tax transparency. The aim must be to strengthen the enabling environment for developing countries to collect tax revenues, build their state systems, promote inclusive economic growth and end chronic poverty and hunger. In the current economic environment, it is essential that we ensure that our development assistance is achieving clear results, and that we strengthen the coherence of policies across all Government Departments which affect developing countries.