Dáil Éireann Debate, Thursday - 11 June 2015
79. Deputy Derek Nolan asked the Minister for Finance if, and the way, his Department invokes human rights principles when assessing budgetary decisions, in particular as regards international taxation of corporate profits; and if he will make a statement on the matter. [22825/15]
Amharc ar fhreagraThe Government's overarching priority in recent years has been to return stability to the public finances, while also ensuring that economic recovery is supported and the most vulnerable in society are protected. Indeed, it is quite obvious that stable and sustainable public finances are a pre-requisite for social cohesion. The Government's approach to economic and fiscal policy, through maintaining an acceptable social safety net and returning the unemployed to work, has been consistent with the ideals set out under the International Covenant on Economic, Social and Cultural Rights. I would also note that earlier this week, a delegation led by my colleague, Minister of State, Seán Sherlock T.D., travelled to Switzerland to discuss Ireland's performance in this regard.
Through the crisis, expenditure in critical economic and social sectors has been protected to the greatest extent possible; in 2015 some four-fifths of gross voted current expenditure is allocated to the Social Protection, Health and Education sectors. Government's continued prioritisation of these sectors has meant that primary social welfare rates have been maintained since this Government took office. Our commitment to protecting the most vulnerable in our society is also found in recent data published by Eurostat showing that Ireland's system of social transfers, the redistribution of wealth and income to those most in need, is among the most effective in Europe at reducing the 'at risk of poverty' rate.
Aside from social transfers, the fundamental reforms to labour market activation undertaken by this Government represent a significant modernisation of Ireland's approach to tackling unemployment through a two-pronged approach: Pathways to Work ensures that the unemployed are given a chance to up-skill and re-join the workforce; while the Action Plan for Jobs has directed its efforts towards boosting labour demand through key reforms.
I feel it is also important to highlight the progressive nature of the Irish taxation system when discussing Ireland's record of protecting people's rights and income in budgetary decision making. The fact that this Government has maintained such a progressive and redistributive tax and social welfare system during one of the most difficult fiscal consolidations in the history of the State demonstrates its commitment to equality and fairness. ESRI research shows that Budgets 2009-2015 in aggregate had neither a progressive nor a regressive pattern and that losses due to budgetary policy were highest for those in the top ten percent of the income distribution followed by those in the bottom ten percent.
Looking at the budgetary decision making process, the Cabinet handbook requires a statement on the likely effects of the decision sought on gender equality, people with disabilities and persons experiencing or at risk of poverty or social exclusion to be included in Memoranda to Government. Consequently, Government does consider each of these important issues at an individual policy or programme level.
With regard to the international taxation of corporate profits, this is something which is of concern to my Department who have been engaging on this issue at a supranational level through the BEPS initiative.
Finally, I would emphasise that the Department of Finance is committed to engaging with developing countries to assist them in increasing their domestic tax revenues in ways that are more efficient, fairer, and better promote good governance and equity was stated in October 2013 in "Ireland's International Tax Strategy". Further, Ireland's "One World, One Future" policy for international development commits to an all-of-government approach to international development. This project also reflects a growing international interest in the subject of how tax systems may impact on the economies of developing countries.
