British stance on tax unchanged

The Minister for Finance, Mr McCreevy, has received assurances from the British government that London opposes any change in the requirement for unanimity on all tax issues within the EU, writes Denis Staunton.

The move follows remarks at the weekend by Britain's foreign secretary, Mr Jack Straw, who suggested that Britain could accept majority voting on some tax issues concerning cross-border fraud. "Today I had a conversation with Paul Boateng, who is substituting for Gordon Brown and he assured me there is no change in the position of the UK," Mr McCreevy said.

In Rome on Saturday for the launch of final negotiations on a constitutional treaty for the EU, Mr Straw referred to an article in the draft text that would abolish the national veto on a narrow range of tax issues.

"We want to make sure that the whole of the relevant article, with the exception of some possible details related to cross-border fraud, is covered by unanimity," he said.

Mr McCreevy said the British Treasury contacted his officials to reassure the Government that London shared Ireland's determination to resist any change to the present position.

The Government has been to the forefront of efforts to resist any move towards tax harmonisation within the EU. Britain, Sweden and some of the new member-states due to join the EU next year share the Government's view but some states complain Ireland's low corporate tax rate amounts to unfair competition.

The Taoiseach, Mr Ahern, told other EU leaders in Rome that Ireland was determined to resist any move to undermine the requirement for unanimity on tax issues in the EU's new treaty.