Paul Murphy (Dublin South West, Socialist Party)
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192. To ask the Minister for Finance his views on the proposal in the Northern Ireland Assembly, to introduce a 10% corporate taxation rate. [8806/15]

Michael Noonan (Limerick City, Fine Gael)
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In the first instance, this is a matter for the Northern Ireland Authorities and the Westminster Government.

However 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.