Our rate of corporate tax 'a fetish' for some

SOME COUNTRIES had developed a deep antipathy towards our corporation tax policies, Fianna Fáil leader Micheál Martin told the Dáil last night. “Quite frankly it has become almost a fetish for the representatives of some countries to get excited about them.’’

He said as a minister he had debates with colleagues from other countries about the issue, and the House would know Brian Cowen had a “colourful and passionate’’ disagreement with French president Nicolas Sarkozy at his last EU council meeting.

“What is amazing about this is that not one shred of evidence has been produced to show that our corporation tax is anything other than a minuscule part of broader European economic performance.

“Our economy is 1 per cent of the size of the European economy. Our policies have an impact on the French and German economies which is close to zero.’’

Mr Martin was introducing a Fianna Fáil Private Members’ motion seeking to retain the State’s corporate tax regime.

He said an independent study on the likely impact of the EU Commission’s latest common consolidated corporate tax base had shown it would likely be of no net benefit to the European economy as a whole. “It would also be of negligible, if any, benefit to France and Germany.’’ However, there would be a direct and potentially devastating impact on Ireland’s economy, with our national income cut by over 3 per cent.

Minister of State for Public Service Reform Brian Hayes said there was a consensus on the corporate tax policy. “The overall message is clear and unambiguous: our commitment to the 12.5 per cent rate in the programme for government will be upheld.”