Michael McGrath (Cork South Central, Fianna Fail)
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74. To ask the Minister for Finance if he, or officials from his Department, have had discussions with Ministers in the Stormont Executive, or their officials, regarding the proposal to cut the corporation tax rate in Northern Ireland; if he will state whether an assessment has taken place of the impact of a cut in the Northern Ireland corporation tax rate on the economy in the Republic; and if he will make a statement on the matter. [8702/15]

Michael Noonan (Limerick City, Fine Gael)
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I can advise the deputy that neither I, nor my officials, have had discussions with Ministers or officials in the Stormont Executive in relation to the proposal to cut the corporate tax rate in Northern Ireland. Such an issue is a matter for the Stormont and UK Governments.

While a formal assessment has not been carried out in relation to the possible impact of a cut in the Northern Ireland corporation tax rate on the economy in the Republic, it is well known that Ireland is a supporter of fair tax competition and 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.

The 12.5% rate is a central pillar of our taxation system but it is important to remember that attracting foreign direct investment and stimulating growth is about much more than just having a competitive tax rate. As I have stated many times, the Irish system is built upon the 3 Rs and while rate is a key feature, the other two Rs of regime and reputation are equally important in shaping a competitive taxation landscape.

Ireland would be fully supportive of any measures which would make the Island of Ireland, as a whole, more competitive but a low stable corporate tax rate is only one piece in the competitiveness jigsaw. A reform of the Northern Ireland corporation tax rate has the potential to generate benefits on both parts of the island.