Alan Kelly (Tipperary, Labour)
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900. To ask the Minister for Jobs, Enterprise and Innovation her views on proposals to lower the UK's corporation tax rate to 15% or lower; if she has discussed this matter with the Minister for Finance; if they are developing a strategy to address the potential impact of such a move on the Irish economy; and if she will make a statement on the matter. [22718/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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On 24 June 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.

I, together with the Minister for Finance and the Government, are actively considering all aspects arising from the UK referendum, conscious that the situation is evolving and remains uncertain in the short term. UK tax issues are a matter for the UK administration and parliament. Chancellor Hammond has indicated that the Autumn Statement will take place as usual.

A competitive tax offering is one 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.

A priority for Government is to protect and promote Ireland’s interests to the greatest extent possible, working within the EU context. Ireland’s foreign direct investment policy, of which tax is one part, has attracted real and substantive operations to Ireland – the kind that brings real jobs. We have an enviable track record. Ireland’s transparent and competitive tax regime and our membership of the EU continue to provide a certainty that is valued by business. 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.