The Minister of State for Europe, Mr Dick Roche, said he had issued a strong letter to the president of the European Convention, pointing out the Government's view that the right of nation states to make the ultimate decision on taxation had to be defended.
Mr Roche was reacting to a warning by Labour spokesman on European affairs, Mr Derek McDowell, that there was a need to provide for a minimum level of corporation tax throughout the EU.
Mr McDowell said we would have to look again at the issue of tax harmonisation. It had been a particular mantra of the more right-wing elements of this Government - the Tánaiste and the Minister for Finance - that we did not want to go down this road at all. This approach ignored the fact that we were already well down that road in relation to other taxes, such as excise and VAT.
We would shortly find ourselves whingeing that foreign direct investment was being snatched by other states which were levying a lower rate of corporation tax. We would then quickly find ourselves in a position where we would have to contemplate cutting public services because we would not be able to sustain the current level of corporation tax.
We needed to have a bit more foresight than Mr McCreevy or Ms Harney. "Because I think they will conclude very quickly that it is in Ireland's national interest, quite apart from the broader issues involved, to ensure that among other things that we do provide for a minimum level of tax on corporations throughout the Union."
Mr Roche, who was speaking in the debate on the European Communities (Amendment) Bill, 2000, said we would be undercut in regard to taxation. This was one of the areas where he was not prepared to surrender an inch.
The Bill, which makes part of domestic law articles of the Nice Treaty, was passed.