President criticises calls for corporate tax hike

DEMANDS BY France and Germany for increases in Ireland’s corporation tax rates are “a nonsense”, President Mary McAleese has …

DEMANDS BY France and Germany for increases in Ireland’s corporation tax rates are “a nonsense”, President Mary McAleese has said in unusually direct remarks, insisting the issue is “not up for negotiation”.

In an interview with the Dutch NRC Handelsbladnewspaper, Mrs McAleese said French president Nicholas Sarkozy had come to Ireland during the second Nice treaty referendum "to reassure" Ireland that it "would always have" control over corporation tax.

Mrs McAleese said: “It is not for negotiation. We have enough debts without throwing away one of the most important tools that we have that will enable us to pay our debts. We just don’t accept that there is any argument. We think it is a nonsense.”

Ireland’s corporation tax policy “long, long, long predates” EU membership, she told the newspaper, in advance of a State visit to the Netherlands early next month.

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Asked if the Irish are “blaming” the EU, she said: “What on earth could they blame Europe for? We have just had the Nyberg report this week which says to us very firmly, you know, look in the mirror . . .”

The Irish have “a righteous sense of indignation and anger” towards people they trusted for telling them that “all was well”, she said.

Many of them bought “family homes because they believed that if they didn’t buy them this year they wouldn’t be able to afford them at all next year, I think they are entitled to be a bit cross, they are entitled to be disappointed”.

Criticising elements in the media “who were doing very well on the advertising”, the President said it “was telling us in breathless tones [to] buy the ski chalets in Bulgaria”.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times