Sir, – The Irish presidency of the European Council’s success in securing agreement on the accounting and transparency directives (Suzanne Lynch, Business, April 9th) is a landmark moment for citizens of countries rich in oil and minerals.
For the first time, communities in these countries will be able to see how much local extraction generates.
With this information journalists and local representatives will be armed with the tools to ensure their community receives a fair share of the benefits. They will also be able to ensure that these revenues are responsibly spent, to the benefit of all citizens rather than the few.
But agreement was not reached on the inclusion of additional industries – such as telecommunications and construction, nor on greater levels of information to be disclosed. This should include the information necessary to identify whether companies are paying the correct amount of tax in a country or whether profits are being artificially shifted to jurisdictions offering minimal rates of taxation.
The Irish presidency deserves great credit, but until similar regulation covers all industries and includes a far greater level of information, some multinationals will continue to exploit gaps in legislation to deprive developing countries of much-needed revenue and prolong these countries reliance on aid. – Yours, etc,
SORLEY McCAUGHEY,
Head of Advocacy
and Policy, Christian Aid,
Clanwilliam Terrace,
Dublin 2.