Ryan ‘hopeful’ Ireland will be ‘part of solution’ on global corporate tax

Green Party leader Eamon Ryan has said he is "hopeful and confident" that Ireland will be "part of the solution" on global corporate tax talks.

The Government is currently considering a revised text of the OECD’s tax proposals, which Ireland has resisted signing up to so far due to concerns they could pave the way to higher rates of corporate tax than explicitly outlined in the original text.

Mr Ryan also indicated that it could be important reputationally for Ireland to sign up to revised terms.

The published version states that countries will agree to a rate of “at least” 15 per cent. Ireland has articulated its concerns on this point, and a draft of new terms has been circulated in advance of a meeting of the OECD this Friday.

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Speaking on RTÉ’s Morning Ireland programme, Mr Ryan said on Tuesday he is “hopeful” that Ireland will get what it wants in the next text.

“Now, this is subject to a Government decision on Thursday and we have to look at all of the latest reports back from Minister for Finance Paschal Donohoe, but I’m hopeful and confident we will be able to be part of the solution here.”

The Cabinet is to discuss the issue on Thursday. He agreed that it is important repuatationally that we sign up now, saying: “I think it is and I’ve said that all along. I think Paschal Donohoe has done a really good job in terms of our path but we still have to wait and see what he has to say on Thursday.”

Meanwhile, Social Democrats co-leader Catherine Murphy has said the state risks “huge” reputational damage if it does not sign up to the deal. Speaking in Dublin today, Ms Murphy said countries such as the Cayman Islands had signed up.

“We certaintly don’t want to be counted as part of the group of tax haven countries, and it’s self evident we are moving in that direction,” she said.

Ms Murphy said the Government needed to invest in and develop a new industrial policy which didn’t rest on taxation, including tackling infrastructural deficits.

Labour finance spokesman Ged Nash said it appears a “landing zone” is emerging for Ireland to sign up to the deal. “We do not believe a marginal increase will cost us jobs, or impact negatively,” he said. “Ireland should be confident enough to trade on the very important attributes that we have.”

“We don’t want to see a bizarre situation arise, and it would be absolutely unconscionable where the rest of the world introduces a minimum effective rate of corporation tax, we retain our 12.5 per cent, which would end up being a fiction,” he said.

Arguing that Ireland should sign up on the condition there is a minimum rate of 15 per cent and no more, Mr Nash said: “It appears a landing zone is opening up where ireland is preparing to do that and we welcome that”.

‘Wish list’

Mr Ryan also defended the revised National Development Plan which was published on Monday.

The plan was not a “wish list” as had been claimed, he said. The funding was available and would be provided. It was important to get value for money. He explained that it was difficult to provide timelines because of the Irish planning process which involved public consultation and was subject to challenge.

The key test would be in the delivery and getting value for money, he added. Ireland was good at building schools and roads and it was time to start to be good at delivering public transport and meeting climate targets.

Mr Ryan said that compact development was needed which would have people living in town centres and would mean low carbon development. A focus on public transport would help achieve climate targets.

“In this decade we will decarbonise this country, there will be 47,000 new jobs,” he said. The skills shortage in the building sector would be met with a switch of focus to apprenticeships and he encouraged young people to consider a new career in the sector.

Mr Ryan also said that he had known that the Attorney General would have to finish off “a limited number of cases” when he took up his position. That situation had been “fully notified” to the Cabinet and he understood there was precedent.