Kenny: Corporate tax not raised at G8

Ireland’s generous corporate tax regime has not come under attack at the G8, Taoiseach Enda Kenny has insisted.

With the Fermanagh summit of world leaders turning its focus to clamping down on tax avoidance by major multinationals, Mr Kenny said Ireland had nothing to fear.

Attending the opening day of the gathering as head of the EU, Mr Kenny welcomed a landmark speech by US President Barack Obama calling for an end to the sectarian barriers in the North. Divisions over the civil war in Syria dominated the summit as Russia and the Western powers clashed over how to handle the escalating crisis.

With a massive police presence, demonstrations against the G8 summit just outside of Enniskillen were smaller than expected.

British prime minister David Cameron had intended to make tax avoidance the focus of the summit, but his ambitions were blown off course by Syria.

The conflict was discussed again at a working dinner of the leaders of the G8 countries — the UK, US, France, Germany, Italy, Canada, Japan, and Russia — last night at the Lough Erne resort.

Mr Kenny made it clear that Dublin would stand its ground over taxation.

“I can’t say what other leaders might speak of, but it hasn’t been raised with me today. International leaders are very clear that a low corporate tax economy doesn’t mean anything wrong in regard to tax. We have been very upfront about this. We have absolutely nothing to hide and everything to gain.”

Mr Cameron hopes to use the second day of talks to hammer out an agreement on greater sharing of tax information to prevent companies and individuals avoiding paying their fair share by hiding cash in offshore bolt-holes.

Mr Kenny also hailed a breakthrough in the marathon negotiations to hammer out a massive trade pact between the US and EU. Mr Cameron said such a deal could pump around €300bn into the world economy.

Mr Obama promised to make the trade talks, which start next month in Washington and are expected to last up to two years, a priority of his remaining term in office.

Mr Kenny said such a deal would be a major boon for the Irish economy.

“The potential is enormous, we would see several thousand jobs for Ireland coming out of this,” he said.

Earlier, Mr Obama received a rapturous reception in Belfast when he heaped praise on Ireland north and south, insisting the peace process had been a beacon to the world, but could not be taken for granted.

In his first visit to the North he called for renewed efforts for the two traditions to work together.