Pfizer U-turn exposes Government’s bargain basement Corporation Tax strategy – Tóibín
Sinn Féin spokesperson on Jobs and Enterprise Peadar Tóibín TD spoke today after the announcement today that the merger of Pfizer and Allergan in Ireland has collapsed, saying that this “has exposed the Irish Government’s risky strategy of attracting FDI through the promotion of tax avoidance strategies”.
The Meath West TD said:
“The announcement today of the collapse of the merger of Allergan and Pfizer has exposed the Irish Government’s risky strategy of attracting FDI through the promotion of tax avoidance strategies.
“The actions of the US Treasury Department which halted the merger demonstrate the riskiness of the strategy of previous Governments to sell the image of Ireland as a tax haven for FDI.
“This state has a two tier economy with the vast majority of Ireland’s exports come from the FDI sector. The last few governments have developed a competitive advantage for Ireland that is shocking overly reliant on bargain basement corporation taxes.
“Real sustainable competitive advantages such as transport, communication and education infrastructure have been significantly corroded by years of reduced investment.
"Nations across the globe are becoming increasingly intolerant of the tax avoidance strategies used by multinationals. With the revelations this week contained in the ‘Panama Papers’ this feeling will only be enhanced.
“Ireland’s overreliance on FDI has left us exposed and decisions taken abroad and beyond our control could have a devastating impact on jobs at home.
“The only way to safeguard against this prospect is to support the development of indigenous Irish Enterprise and SME’s and invest is real infrastructural advantages.”