Irish veto over EU tax changes will remain, Ahern states

Ireland will continue to have a veto over tax sovereignty, Taoiseach Bertie Ahern told the Dáil, as he was questioned about the EU reform treaty referendum.

He rejected concerns from Sinn Féin, the only party in the Dáil to oppose the treaty, about moves to have a common corporate tax base, and said he did not believe it was "the type of grand project that will ever progress into a policy area".

Sinn Féin Dáil leader Caoimhghín Ó Caoláin claimed the debate about a common corporate tax across the EU had been shelved until after the referendum, and he asked if Mr Ahern sought "to have it shelved because they are anxious as to its impact in terms of Irish voter thinking regarding the EU reform treaty proposition".

The Taoiseach denied the debate had been shelved. There had been no substantive political debate but work of a purely technical nature was ongoing. He added that "they can go ahead with their technical work all they like and we will co-operate with it".

He did not think it would turn into a tax-harmonisation issue "and if I did, I would not support it. We still have our own protections".

Mr Ahern was referring to the "red line" areas of protection or special interest. "Tax sovereignty is an area over which we have a veto," he said.

During the regular Dáil debate on EU council meetings, Sinn Féin foreign affairs spokesman Aengus Ó Snodaigh claimed "that the Taoiseach has invited the German chancellor and the president of the European Commission to give him a dig-out on the referendum".

Mr Ó Snodaigh said if the presidents, prime ministers and chancellors who signed up to the treaty "want to be involved in referendums, they should organise one in their own jurisdictions".

Minister for Foreign Affairs Dermot Ahern said it was chancellor Angela Merkel's turn to come to Ireland. "I believe it will be a bilateral meeting, as it has more to do with our relationship on that basis with Germany, but her views on the treaty may well be part of that if she comes before the referendum."

Mr Ó Snodaigh said "the need for Ireland to have its place at the EU table is obvious. Many benefits have come about from membership of the EU. However, everything has not been good," he said.

"The sacking of Irish Ferries workers was not good, the inability of the Government to deal with the problem of Brazilian beef was not good, neither was the shutting down of the Irish sugar beet industry. The privatisation of Telecom Éireann and Aer Lingus was not good. The proposal to liberalise the postal service is not good, the engagement of Irish troops in EU battle groups is not good."

Fine Gael foreign affairs spokesman Billy Timmins noted that "the downside of the welcome referendum in Ireland is that there will be a very strong "No" campaign by people who always begin by advocating openness and truthfulness and talking about deals behind closed doors, but then proceed to circulate misinformation left, right and centre. I find it slightly amusing that they always use the preamble that Ireland has not done too badly out of Europe but that the forthcoming treaty is the one that will finish it off".