Ireland's Corporation Tax 'Non-Negotiable'

Ireland's Deputy Premier, Mary Coughlan has maintained that their low rate corporation tax of 12.5% was "non-negotiable" after it emerged the competitive rate may be part of the ongoing negotiations.

The Tanaiste maintained that Ireland's low corporation tax has been a significant contributor to the State's ability to attract vast amounts of foreign investment and said attempts to repeal the tax rate are being perceived as an infringement of Ireland's threatened sovereignty.

Today, Irish officials are locked in what is being described as "technical discussions" with EU analysts in a probable loan from the European Central Bank, the International Monetary Fund and European Commission.

It's believed that a number of aspects of Ireland's current economic policy could be under threat during the negotiations with the State's EU partners.

Brian Cowen has also rubbished accusations that the Government had surrendered Ireland's sovereignty as the European officials analyse the nation's books. Mr Cowen said the economy remains strong and sustainable.

"There is no question of loss of sovereignty for Ireland," the Taoiseach said.

Speaking in the Dáil today, Finance Minister Brian Lenihan opened by giving reassurance to depositors that “all deposits continue to be safe and secure", and warned about "misinformed, inaccurate and in some instances mischievous comments about the protection of deposits”.

Mr Lenihan said that, were the ongoing talks to result in a loan being made available to Ireland to create confidence but not "drawn down" to the banking system, that would be a "very desirable outcome".

"The job of Government is to protect the taxpayer and that is what we have been doing and what we are now doing," he said.

Mr Cowen said in currency terms the country shares its sovereignty with the Euro partners and is working with them to find an overall solution to wider problems.

"It will be the sovereign decision of the Irish Government on behalf of the Irish people that will decide what shape any package would be where we can decide that`s in our best interests," the Taoiseach said.

"At the moment we are in the process of working out what the best options are."

(DW/BMcC)