Mairéad Farrell (Galway West, Sinn Fein) | Oireachtas source

The Dáil appears to be running ahead of schedule. As the Minister will know, we have long called for the closure of loopholes and reliefs that certain funds, companies and investment vehicles have availed of and exploited to reduce their tax liability. It is also our view that the facilitation of tax avoidance and aggressive tax planning by successive Governments has damaged the reputation of this State internationally and undermined its ability to negotiate in discussions around international taxation.

There is merit in amendment No. 24, put forward by Deputy Boyd Barrett. His amendment is similar to ours. Sinn Féin supports the two-pillar solution on international tax reform reached at the OECD and its principles and objectives. Like every element of our tax code, we must make sure that this agreement, once implemented, is actually complied with by companies within that scope. Our amendment calls for a report on the two-pillar solution agreed by the OECD-G20 inclusive framework to address the tax challenges arising from the digitalisation of the economy, its impact on Exchequer revenue, its consequences for economic competitiveness and options for a renewed industrial strategy in the context of this changing landscape. This is crucial for a number of reasons. It is crucial to provide clarity on its operation and the number of enterprises in scope under pillars 1 and 2. We need an updated impact assessment regarding pillars 1 and 2 on Exchequer revenue. Previous estimates of a €2 billion annual reduction are out of date. The design of pillar 1 has changed, including the portion of residual profit above the 10% margin that will be allocated to market jurisdiction. The 15% under pillar 2 could result in an increase in corporate tax revenue in the medium term but we need up-to-date projections to inform public policy. This is an issue that my colleague, Deputy Doherty, raised with the Minister at the finance committee and it is a piece of work that we believe the Department should undertake.

While we can remain competitive as a result of these changes, we can only do so if we address those factors just as crucial for investment and our economic competitiveness. Those include the likes of childcare, housing, research and development and education. In so many of these areas, we have simply fallen behind. The Department, perhaps in conjunction with the Department of Enterprise, Trade and Employment, should consider and give an assessment of these factors and options for a new industrial strategy, something that I know is addressed each year by the National Competitiveness and Productivity Council.