Business group Ibec has rejected Sinn Féin’s claim that the Lisbon Treaty is bad for business.
Sinn Féin, the only political party in the Dáil campaigning for a No vote in the June 12th referendum, said today the treaty would have “negative implications” for Ireland in the areas of taxation, investment in infrastructure, jobs and economic development.
Speaking in Dublin on the publication of the party's guide to the treaty for business, Sinn Féin Dublin MEP Mary Lou McDonald claimed the treaty "opens the door" to tax harmonisation across the EU.
“The Lisbon Treaty puts significant pressure on member states to reduce public expenditure. It limits the range of options available to governments in times of economic slowdown, particularly by placing more stringent limitations on borrowing. It fails to address the heavy restrictions of state aid. It actively undermines public services. And it opens the door to tax harmonisation. All of this reduces the Irish Government’s ability to invest its own future," she said.
Mary Lou McDonald and Gerry Adams unveiling the SF anti-Lisbon campaign
Ms McDonald said Sinn Féin has "never argued that the veto on taxation is gone".
"What we have argued is that Article 48 makes it easier to remove this veto in the future," she said.
“In a time of economic uncertainty governments need to be free to choose the best course of action to stimulate the economy and drive balanced and sustainable economic growth. The Lisbon Treaty restricts governments' choices, imposing a 'one-size-fits-all' approach to the economy."
In response, Ibec said Sinn Féin had “absolutely no credibility” when it came to matters relating to the Irish economy and could not be trusted on the issue.
Ibec director of EU and International Affairs Brendan Butler said that from a business perspective the Lisbon Treaty is “a complete no-brainer”.
“The Irish economy has been a major beneficiary of membership of the EU and the Lisbon Treaty will further support Irish business and jobs.”
He said Sinn Féin’s claims were “a bit rich” given that the party had not long ago called for an increase in Ireland’s corporation tax rate.”
Mr Butler said the treaty would for the first time give a role to the EU on energy security, providing cooperation between member states when there were difficulties with energy supply. It would also improve transport infrastructure across member states.
“Transport costs are a huge and increasing issue for Irish exporting companies and any measures that allow us to get our goods and services to market quicker and cheaper have to be welcomed,” he said.
Mr Butler said the Lisbon Treaty would also provide “substantial additional business opportunities” for Irish companies.
“Overall our exports into the EU member states increased from €44 billion ten years ago to €88 billion last year. Ratification of the Lisbon Treaty will give a significant boost the completion of the internal market particularly in relation to services and this has to be good for Irish business and jobs."