Kenny calls on FF leader to be more supportive

THE TAOISEACH reiterated his opposition to an increase in Ireland’s corporate tax rate and called on the Fianna Fáil leader to be more supportive of the Republic’s position.

Enda Kenny refused a request by Micheál Martin to publish the text of a document tabled by European Council president Herman Van Rompuy in March dealing with the corporation tax, adding that he disagreed with it.

“No leader before me had ever been in a situation in which an offer of support was conditional upon this country raising its corporate tax rate,” said Mr Kenny.

“I refused to do that, I still refuse to do it, and I will not move on it.”

Mr Martin said he was only asking for the document to be published.

Mr Kenny said it was about time Mr Martin began to support Ireland and stopped trying to score points with meandering statements about publishing the text.

“I am quite sure he has the text,” he added.

Insisting he was supportive, Mr Martin again asked the Taoiseach to publish the text, but Mr Kenny repeated he was sure the Fianna Fáil leader was in possession of it.

During a debate on last week’s European Council meeting, Sinn Féin leader Gerry Adams said he did not understand Mr Kenny’s negotiating strategy, although he did not think Fianna Fáil had much credibility on the issue.

The focus on the interest rate, said Mr Adams, although welcome, was similar to the fable of the emperor’s new clothes.

“The fact is that our partners are imposing a hefty 3 per cent surcharge on their lending to Ireland which, according to figures from the Minister for Finance, will cost the Irish taxpayer €3.4 billion for every percentage point,” he added.

“It does not add up. It is absolutely crazy.”

Mr Kenny said the Government’s objective was to get back to a situation where Ireland was in charge of its own economic destiny. “That means we must pay our way, meet our conditions and get out of the IMF-EU bailout deal as quickly as we can,” he added.

“That is why the Government has taken decisions on the banks and given some element of stimulation to our indigenous economy within the constraints of the IMF-EU deal.” Mr Kenny said he recognised the challenge facing the Irish people.

“People with distressed mortgages, those on low pay or those who are locked out of employment because of the structure of the joint labour committees are coming to me as they are to everyone else,” he added.

“Our job is to stimulate our own economy, increase our exports even further, improve our productivity and build on our flexibility so that foreign direct investment will continue.”

Richard Boyd Barrett (ULA) said the Greek people were protesting, rightly and justly, against vicious austerity measures. He asked if Ireland was preparing contingency plans, such as printing punts, in preparation for the possibility that we might have to pull out of the euro.

“No, we are not,” replied Mr Kenny.

“Ireland is meeting its requirements and conditions, challenging though they are, and when the interest rate reduction is applied that will be of extra help.”

Earlier, Mr Kenny said there was no detailed discussion of the situation in Ireland at the meeting, although in its conclusions the council welcomed the progress made in the implementation of the reform programme and agreed it was on track.

It was difficult, he said, to see Greece emerging from its current predicament unless some form of political unity of purpose was achieved. There was a mountain to be climbed and all must play their part, Mr Kenny said.