Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Question 97: To ask the Tánaiste and Minister for Foreign Affairs and Trade if the corporate taxation rate here will be preserved if EU treaty changes go ahead. [38475/11]

Eamon Gilmore (Dún Laoghaire, Labour)
Link to this: Individually | In context

At the European Council last month, important steps were taken in relation to budgetary discipline within the euro area and firewalls, both of which are issues of importance to Ireland, and progress was made towards taking Europe beyond the current crisis. In particular, leaders agreed to further strengthen economic policy coordination within the euro area, by way of an intergovernmental agreement, to construct a new 'fiscal compact'.

Negotiations are on-going on a draft Treaty to give legal effect to this agreement. Corporation tax is not an issue in those negotiations. For Ireland, as a small open economy with a heavy concentration of foreign direct investment, our corporation tax rate is critical to supporting our economic recovery and employment growth. What was agreed at last month's European Council does not open the question concerning our 12.5% corporation tax rate and the Government's firm position in the matter has not changed.

As a quite separate matter, the European Commission made a formal proposal last year concerning a Common Consolidated Corporate Tax Base (CCCTB). That proposal is being discussed in the normal way and, as has been made clear on many occasions, Ireland will play a constructive role in that regard.