Co-operation will not dilute our sovereignty
I am fully in favour of debating with members of the No campaign, but I believe that in order for the necessary discussion to occur in a frank and informative manner, the facts must be recognised for what they truly are.
Firstly, he states that our low corporate tax rates (currently 10% for manufacturing, 16% for trading with profits over 254,000 and 25% on passive income and not the blanket 12.5% as stated by Mr Coughlan) are a factor in encouraging foreign investment in the Irish economy. This is true.
However, it is also a fact that the Minister for Finance has decided that our corporate tax rate of 16% be reduced further to a rate of 12.5% (target date January 1, 2003).
Considering that the EU average rate is 39%, this certainly cannot be construed as anything remotely close to tax harmonisation! To clarify,
The Nice Treaty does not and cannot alter this development. It will happen irrespective of Nice. Nice does not reduce the power of the Irish Government to decide on its own corporate taxation policy. Additionally, all other taxation policy remains within the domain of the Irish Government and will do so until the Government decides otherwise, which is highly unlikely.
Mr Coughlan goes on to allege that the Articles in the Nice Treaty that provide for "enhanced co-operation" have the effect of removing Ireland's veto on harmonising taxes in the EU. This is Not only is this untrue and , it is also utterly inconceivable.
This claim is untrue because Enhanced co-operation does not allow the position of any country in the EU to be overridden by other member states. It Enhanced co-operation is designed to avoid undesirable splinters occurring whereby certain member states pursue policy objectives outside the framework of the EU, excluding other member states.
With this system, closer co-operation can occur on policy issues within the EU structures, between member states that wish to participate. No country is obliged to participate, yet no country can be excluded. The euro is an example: of this, where Ireland and 11 others went ahead and Britain, Denmark and Sweden stayed out. Even if eight or more countries want to harmonise taxes, Ireland can stay out just like Britain has stayed out of the Euro. It is a much fairer system than exists at the moment.
Enhanced co-operation is needed to prevent a two-tiered Europe developing.
Mr Coughlan's claim that enhanced co-operation will end our veto on taxation policy is inconceivable for one very simple reason. No Irish citizen could seriously believe that Minister McCreevy would endorse a Treaty which would harmonise the taxation policy of the EU. A rather improbable scenario, given the position he has consistently taken on this issue. In fact he is on record as having said such a move would be "illogical and inconceivable". We all know that the Minister likes to keep a firm grip on the reins of the nation's taxes! In short, The objections being advanced by the National Platform and others from the No camp fail to look at the facts and evaluate the real implications of Nice. Rather than trawling through Articles of the Treaty and subsequently interpreting them in a manner which is only ever going to represent a pre-decided position, it would, perhaps be advisable to look at the deeper issues at stake here.
What is the value of our own isolationist taxation policy in Ireland, if by rejecting this Treaty, we reduce our negotiating power in the EU, we shut of a crucial market of 500 million consumers, and we retreat into a peripheral role on the outside of a united and progressive Europe? This Treaty is so much more important than merely voting for institutional reforms.
It is about something much bigger. Do we like the fact unemployment rates have dropped by 15% in the past ten years, that our standard of living has improved beyond recognition, that Irish businesses are now investing all over the world and that our rights as citizens have been afforded unprecedented protection? If so, and if we want it to continue, we cannot reject Nice and be relegated to marginalisation for the first time since 1973. By voting Yes to Nice, we are voting Yes to the Europe from which we have gained so much and Yes to the Europe that can offer us so much in the future.
This is not merely our second chance, it is our last chance so lets use it wisely.
Yours etc.,
Lucinda Creighton,
Young Fine Gael,
Director of Elections,
51 Upper Mount Street,
Dublin 2.
