FG to move motion on corporation tax

Fine Gael said today it would move a motion in the Dáil next week on protecting Ireland’s 12

Fine Gael said today it would move a motion in the Dáil next week on protecting Ireland’s 12.5 per cent corporation tax rate.

Speaking in Donegal, party leader Enda Kenny said there were genuine fears that the Government will “sacrifice” the corporation tax rate as part of the negotiations with the IMF and EU.

“A low corporation tax rate is a cornerstone of Ireland’s economy, and will play a crucial role in rebuilding the country,” he said. “The survival of the 12.5 per cent rate will be crucial for retaining thousands of jobs in multinational companies based in Ireland.

He said the low rate was crucial in the IDA’s efforts to attract foreign investment in Ireland.

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Yesterday, Tánaiste Mary Coughlan firmly ruled out the Government conceding any change in the Republic’s corporation tax in the talks with the EU and IMF. She told the Dáil the 12.5 per cent rate was non-negotiable.

Mr Kenny, who was campaigning with byelection candidate Cllr Barry O’Neill, called on Sinn Féin to clarify its position on corporation tax and support his party’s Private Members Bill next week, which is supported by Labour.

Sinn Féin's finance spokesman Arthur Morgan accused Mr Kenny of toeing the Government line.

"Fine Gael backed the policies that created this crisis," he said. "They continue to support the Government's disastrous economic polices just as they supported the Government in the Lisbon treaty referendum when Sinn Féin said the EU will go after our corporation tax."

He said Sinn Féin had no intention of supporting increases to the corporation tax rate in the foreseeable future.