Mattie McGrath Accuses 'Establishment' of Favouring Multinationals

I too want to say, on behalf of the Rural Independent Group, that we salute and support our brave Gaelic, Tanaiste, and wish them well in recovery. Teachta, Ireland has become a country of the establishment. In Ireland today, citizens, i.e. voters, are consulted every four or five years at the time of the general election. But institutions that are part or close to state have regular and daily access to ministers, power and to government decision making. In fact, many government departments even pay these organizations to provide them with advice. Is it any wonder then that the system is stacked against the ordinary man and woman? Today and every day, Irish people are being hammered by the government's approach to taxation. The marginal rate of tax, PRSI and USC on average workers now rests at 52%, while on the other hand the rate of a cooperation tax is 12.5%. This is the differential of nearly 40% and contrast with Germany, where an average worker pays 28%, and the income tax and the cooperation tax pay 26%. In Germany, the same loopholes do not exist for large corporations and investment funds to evade paying tax, while in Ireland, these loopholes mean that the large investment funds and corporations and coca funds pay little or no tax at all. In fact, Google, one of the world's richest companies, were facilitated to move 63 billion in profit out of Ireland in 2019 and pay 263 million in taxes. They are just representing an effective tax rate of 8.4% by Google. And Google example means that to every 100 euros earned by a taxpayer, an ordinary worker, it just paid 40% or Google, they paid 40 cents in tax. But for every factory, an ordinary worker, a 100 euro earned in Ireland, the average worker in 2019, they pay a staggering 52% or 52 euro. What's going on, Taoiseach? I mean, it's obvious to see. One doesn't need to be a scientist to see that there's getting a special treatment here. This is not a disgrace of gigantic proportion, Taoiseach. The deep rot and hugely significant issues that are conveniently never debated in this house. This needs to change the issue. The government needs to come clean here. The government and successive governments have turned a blind eye to this behaviour and conveniently sweep it under the carpet. That does not resemble, as socially, just our democratic country. These values that our founding fathers fought for, and women, men and women who are brave and such of them paid the ultimate price, these were patriots. They were selfless men and women. Some of them paid the ultimate price, as I said. I don't think that they paid the price to allow for 100 years on to be constantly exploited by foreign multinational corporations and to see our people punished and abused in that way. They certainly did not, and we celebrate them, as I said earlier, and we should live up to their ideas and standards. Thank you, Deputy. Taoiseach? First of all, I always have to fundamentally disagree with this label, the establishment. Every deputy in this house is elected at every general election. And I would have equal respect for all deputies, by dint of the fact that they've been elected, and it's too easy a label to throw out there. And it's deliberately done to undermine people, whereas we actually have a strong, functioning democracy in Ireland, compared to other countries. And we have also, we continue to reform our parliament, and we facilitate a whole range of groups out there in society to access parliamentarians, to influence policy formulation, and to advocate for their interests. And there are aspects of our system that continually need reform, but we should always affirm the strengths of Irish democracy as the world becomes more authoritarian. And I would just make that point. Now, in terms of taxation, I don't know whether the deputy is saying the 12.5% for multinationals is too low, or as a model, as part of a wider model, it is the wrong one. What I would say is that when he speaks about those who lost their lives in the War of Independence, or who fought in the War of Independence, I often think of Sean Damas, who was 16 years of age in the GPO. Now, there's a person worth studying in terms of how his life evolved. He was an internationalist. He believed in joining international rules-based organizations. He was way ahead of his time in supporting access to the common market. In the early 60s, he could see what was coming downstream, and he wanted to prepare for Ireland for it. And he did a lot of work to get Ireland ready for joining the European Union, which is probably one of the best things this country ever did. And it's something I'm particularly proud of, of my party's role, Fianna Fáil's role, in leading Ireland into the European Union. Because it turned us from being an insular island to a far more outward economy, and we have benefited significantly because of our membership with the European Union on so many fronts. Now, in terms of the foreign direct investment model, over the last 50 years, since we decided to look outwards, we've attracted in some of the best manufacturing facilities into Ireland. Whether it is the Intels of this world, whether it's the Hewlett Packard, the Apples of this world, the pharmaceuticals. Only this week, Pfizer have announced now that mRNA vaccine technology will come to Ireland in Grange Castle and will be manufactured there. That places Ireland at the center of the manufacturing of vaccine substance, which can be used in Europe and all over the world. Because it's the fastest way to get vaccines out there across the world. Now, that model will change over time, Deputy. And the OECD is looking at the broader framework governing corporate taxation. But it actually has worked for Ireland in terms of a small island having to compete with other bigger players in the economic field. We've attracted thousands and thousands of good quality jobs in the pharma industry, in the technology industry, and yes, in the digital sector as well. Mr. Teichok, time is up. Deputy McGrath. Mr. Teichok, look, I accept that the multinationals came here back in the 80s and 90s, and they're in Canmel and Merck and other companies doing great work. I'm talking about 40 years on. We need to review the taxation. Why is the ordinary worker only paying 26% in Germany and 52% here? And why have we no tax havens for those multinational companies in Germany? Because they respect their people. We had a different issue about Germany last week. Teichok, you mentioned Sean Lamass. Our union government colleagues bear no resemblance to those fine men and women of 19, 16 and 21. None whatsoever. You've sold out to the EU, and we've seen them with the fisheries. Deputy Michael Collins is standing this morning, and he's apologised for his absence, with the fishermen in Cork. We've seen them with our agriculture policy, replied to Deputy Murphy, you're beholding to Europe, and beholding to anybody that keeps you in power. And all these organisations have too much access to you and to your ministers, and they have them all, and the OECD have answers as well, and questions to answer. So, we need to come clean here, Teichok, and open their eyes here, and be fair to our people. Treat them with respect. And you're some man to lecture about democracy, good democracy, when you have trottened on democracy for the last 14 months. Overwhelming me, and you're going to do it again this day, and vote again for more draconian measures. You have some cheek. Thank you. First of all, because I said that the Irish taxation system is one of the more progressive globally. Those who earn the most, pay the most, in terms of... And the social, I mean, the German overall taxation framework is much more onerous than would be the case here, actually. If you take all of the social insurance and contributions that have to be made. And I do not believe you are comparing like with like there. And I don't know whether you're advocating that we leave the European Union. I would disagree with you. I think we have to work for a stronger European Union into the future. And I believe in terms of the global challenges, in terms of even the most recent cyber security attack on the country and on our health service. Whether it's climate change. Whether it's energy efficiency and working together. Europe will provide us, if we work collectively with others, with the most effective way out. And of course, trading and selling goods and services into a huge market. That's huge for Irish companies. They create jobs by selling the goods that they make and the services they provide by accessing the market. Thank you.