Micheál Martin (Cork South Central, Fianna Fail)
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96. To ask the Minister for Finance if he has had recent discussions with the First Minister and Deputy First Minister of Northern Ireland regarding equalising corporation tax rates between Northern Ireland and Southern Ireland; and if he will make a statement on the matter. [8926/14]

Micheál Martin (Cork South Central, Fianna Fail)
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97. To ask the Minister for Finance if he has had recent discussions with Prime Minister Cameron on equalising corporation tax rates between Northern Ireland and Southern Ireland; and if he will make a statement on the matter. [8927/14]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 96 and 97 together.

As I have said previously in this House, as a rule we do not comment on the tax regimes of other jurisdictions. However, the OECD has consistently stated that low corporation tax rates combined with a broad base is the best way to encourage economic growth while still maintaining tax revenues. That is what we have being doing for many years and what we will continue to do.

A reform of the Northern Ireland corporation tax rate and base has the potential to generate benefits in that part of the island, as well as on this side of the Border. Some commentators might see it as a case of Northern Ireland entering into direct competition with us on corporation tax, but I do not see it that way I see it as having the potential to benefit both sides of the Border thereby providing an impetus for the island as a whole.

Of course there is strong evidence that a low corporation tax rate on its own will not be enough to attract significant FDI and we have consistently demonstrated that Ireland's attractiveness for foreign multi-national corporations is based on a whole range of factors one of which happens to be our 12.5% tax rate.

I have not held any discussions with either the First Minister or the Deputy First Minister on the issue of equalising corporation tax rates between this State and Northern Ireland.

Micheál Martin (Cork South Central, Fianna Fail)
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98. To ask the Minister for Finance if tax cuts have been discussed at his latest meeting with the social partners; and if he will make a statement on the matter. [10349/14]

Michael Noonan (Limerick City, Fine Gael)
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In advance of Budget 2014, I met, along with Minister Howlin, a number of representative organisations including IBEC, ICTU, the IFA, the ICMSA, the Construction Industry Federation and the Community and Voluntary Pillar.  During these meetings, a broad range of issues were discussed including their tax proposals, which I considered in the context of Budget 2014.  

 In January of this year, I met with IBEC, during which a broad range of topics were discussed, including the economy and general tax policy.  In addition, I also delivered a speech and took part in a Q&A session to the IFA executive board, in which general tax policy in relation to the farming sector was discussed. 

As the Deputy will be aware, we have to deliver a general government deficit of less than 3% in 2015 to exit the Excessive Deficit Procedure (EDP).  This will require further consolidation, including the introduction of revenue raising measures in Budget 2015. Once out of the EDP, Ireland will have to meet its obligations under the preventative arm of the Stability and Growth Pact.  

The key objective is to achieve our Medium Term Budgetary Objective (MTO) of a balanced budget in structural terms in 2018.  Until we reach our MTO, discretionary revenue reductions have to be offset by other revenue increases or expenditure reductions.  Within these constraints, I will continue to work with my Department, as I have done in each of the last 3 years, to reform the taxation system to enhance economic growth and increase employment.  This will include reviewing and reforming, where appropriate, tax expenditures in the form of reliefs and incentives.