Written answers

Wednesday, 13 July 2011

Department of Foreign Affairs and Trade

Economic Recovery

6:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 65: To ask the Tánaiste and Minister for Foreign Affairs and Trade the extent to which he continues to engage with members of parliament or policy makers within the EU in the context of reiterating this country's basic and urgent requirements with particular reference to economic recovery; and if he will make a statement on the matter. [20353/11]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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As part of the diplomatic initiative, which I announced at the beginning of April and in line with the Government's commitment to restoring Ireland's standing as a respected and influential member of the European Union, I have sought regular engagement with policy makers in all the institutions of the European Union. During these meetings I have made clear the economic and financial realities confronting this country and the steps that we have taken to get our public finances in order, to repair the banking sector and to restore growth. I have emphasised our determination to see this process through to a successful conclusion and sought to inform and to persuade, pointing to the benefit for the euro area and EU as a whole of Irish success.

In addition, I have travelled to London, Paris, Vilnius and Berlin for bilateral consultations with my opposite numbers. I have also had bilateral meetings with my Finnish and Luxembourg colleagues in the margins of the Foreign Affairs Council. On Monday, I met European Parliament President Jerzy Buzek during the course of his official visit to Ireland. I will continue my programme of bilateral engagements with Ministerial colleagues over the period ahead.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 66: To ask the Tánaiste and Minister for Foreign Affairs and Trade his efforts to date or intentions to convince without exception each of our EU partners of the necessity to recognise that Ireland's ability to meet its obligations arising from ECB and IMF-EU member state rescue provisions should not be undermined by any attempt to restrict this country's economic capacity by a way of interference with already established tax regimes including corporate taxation; and if he will make a statement on the matter. [20354/11]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 67: To ask the Tánaiste and Minister for Foreign Affairs and Trade the extent to which he continues to reiterate Ireland's fundamental opposition to any attempt to alter in any negative way any aspects of taxation policy within this country; and if he will make a statement on the matter. [20356/11]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 68: To ask the Tánaiste and Minister for Foreign Affairs and Trade when it is likely that EU colleagues will come to accept that there is no obligation on any member state to concede any of the provisions of previously adopted treaties on the basis of any emerging necessity whatsoever; and if he will make a statement on the matter. [20357/11]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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I propose to take Questions Nos. 66 to 68, inclusive, together.

In all engagements with EU partners, the Government has stated clearly and categorically that Ireland will not accept any adjustment in the Irish corporation tax rate. I know that this is a view shared by the vast majority of members of this House and by the Irish people. Any increase in our corporation tax rate would be counter-productive both in terms of our ability to attract foreign direct investment and to grow our way out of our current situation, something which is in the interests of the entire EU.

As part of the diplomatic initiative announced in April to restore Ireland's standing as a respected and influential member of the European Union and to ensure understanding of and support for Ireland's approach to our EU/IMF programme, my colleagues in Government and I have taken every appropriate opportunity to seek to ensure a broad understanding and appreciation of our position among our partners on this issue.

Since taking office, I have met my European colleagues on many occasions at EU and other Ministerial meetings. In addition, I have travelled to London, Paris, Vilnius and Berlin for bilateral consultations with my opposite numbers. I have also had bilateral meetings with my Finnish and Luxembourg colleagues in the margins of the Foreign Affairs Council and on Monday, I met with the President of the European Parliament, Jerzy Buzek, during the course of his official visit to Ireland. I will be continuing my programme of bilateral engagements with Ministerial colleagues over the period ahead.

The publication by the European Commission in March of a formal proposal on a Common Consolidated Corporate Tax Base (CCCTB) represents the beginning of what will be a lengthy process. We have done considerable preparatory work concerning the CCCTB issue and look forward to making our contribution to these deliberations. The Government is sceptical about many aspects of a CCCTB, but we are willing and committed to work constructively with the Commission and other Member States on the issue. This proposal was made on a legal base requiring unanimity.

Ireland is not opposed to greater co-operation within the European Union on tax policy matters. Indeed, under the Euro Plus Pact, work will be taken forward by Finance Ministers and the Commission on pragmatic coordination of tax policies on issues such as, the exchange of best practices, avoidance of harmful practices and proposals to fight fraud and tax evasion. As the Deputy may recall, in June 2009, the Heads of State or Government of the 27 Member States of the European Union decided with respect to the concerns of the Irish people on the Treaty of Lisbon, in the area of taxation that, "nothing in the Treaty of Lisbon makes any change of any kind, for any Member State, to the extent or operation of the competence of the European Union in relation to taxation".

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