Niall Collins (Limerick County, Fianna Fail)
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781. To ask the Minister for Jobs, Enterprise and Innovation her plans to respond to the recent announcement by the United Kingdom Chancellor to reduce the United Kingdom's corporation tax rate to 15% as opposed to a previously announced reduction to 17%; if this poses a challenge to Ireland by reducing foreign direct investment here given a recent Economic and Social Research Institute study that says that every 1% drop in the United Kingdom rate would, all things being equal, reduce foreign direct investment from outside the European Union by 4.6%; and if she will make a statement on the matter. [20466/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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On June 24th we published a contingency plan outlining our whole of Government response which was immediately activated. Government is addressing the implications for Ireland of the UK leaving the EU by actively taking forward the contingency plan to ensure that we respond appropriately. The Government and my Department and its agencies are taking concrete actions to address potential challenges and deliver for Ireland on any potential upside that change inevitably presents. I instituted a Coordination Group consisting of the Chief Executive Officers of IDA Ireland and Enterprise Ireland and relevant enterprise, single market, and trade officials, to oversee the management of our immediate response and the messaging to businesses both overseas and domestically. I will continue to chair this Group as part my Department’s ongoing response as developments unfold.

Both agencies have communicated directly with their clients, and, I am aware that there have been multiple contacts since then, between IDA Ireland and Enterprise Ireland and the enterprise base.

In terms of FDI, IDA Ireland continues to market Ireland across the globe as the number one location for direct investment, confirming that we are open for business.

UK tax issues are a matter for the UK administration and parliament. Chancellor Osbourne had previously suggested a cut to the corporation tax rate in the UK and I am sure there will be proposals emerging in many areas over the coming period.

A competitive tax offering is part of our attractive holistic offering. Ireland’s 12.5% corporate tax rate is underpinned by a competitive regime – our world class R&D tax credit and our ‘best in class’ OECD compliant Knowledge Development Box. Our low rate applied to a broad base ensures sustainable economic growth while still maintaining tax revenues.

In relation to the ESRI report ‘Corporate Taxation and Foreign Direct Investment in EU Countries: Policy Implications for Ireland’, the ESRI highlight that investors from outside the EU are attracted by the possibility of getting access to the European Single Market.

A priority for Government is to protect and promote Ireland’s interests to the greatest extent possible, working within the EU context. FDI has been, and will continue to be a key element of Ireland’s enterprise policy. Ireland’s holistic foreign direct investment policy, of which tax is one part, has attracted real and substantive operations to Ireland – the kind that brings real jobs.

Ireland’s transparent and competitive tax regime and our membership of the EU continue to provide a certainty that is valued by business. FDI is attracted by a holistic package and Ireland can point to an enviable track record. Ireland has an English speaking business environment, ease of doing business and access to talent and consistently performs well on key international indices. Ireland has a certain, stable and competitive offering. Ireland is, and will remain a member of the EU and Eurozone.