Lisbon Treaty will not curb veto rights on tax, says commission

IRELAND WILL continue to be able to veto demands by European Union member states for changes to its business taxes if the Lisbon…

IRELAND WILL continue to be able to veto demands by European Union member states for changes to its business taxes if the Lisbon Treaty is passed, the Referendum Commission has said.

"So far as taxation is concerned, our considered view is that there isn't any change: that the present veto on taxation will continue," said the commission's chairman, Mr Justice Iarfhlaith O'Neill.

Some of those who have urged a No vote in the June 12th referendum have argued that Ireland's low business tax environment could be threatened by the treaty's ratification.

The commission, an independent body, will send two million copies of a 14-page explanation of the treaty to every home in the country from early May onwards.

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In addition, a more detailed explanation has been made available on the commission's www.lisbontreaty2008.ie website, while the public will also be able to call a Lo-call number - 1890-270970 - for information.

The scale of the challenge being faced is illustrated by the fact that 62 per cent of the public say they do not know anything about the treaty, according to opinion poll research carried out for the commission. Just 5 per cent say they are properly informed.

However, both Mr Justice O'Neill and another member of the commission, Comptroller and Auditor General John Purcell, insist the commission has enough time to ensure that the public is properly informed.

The current low knowledge levels are "not surprising", said Mr Purcell, since it was in line with past experience such as during the Nice referendum campaigns.

Mr Justice O'Neill said the public information campaign beginning on May 12th, backed up by a €5 million budget, will last four weeks.

"That corresponds roughly to the length of a general election campaign and, ordinarily, people don't engage in issues until we get well into that four-week period.

"We feel that we are on time to have maximum impact in terms of informing the people about what this is all about," said Mr Justice O'Neill.

He said that voters will not be able to claim legitimately after the referendum is over that they were not offered sufficient information in advance to make up their minds.

"If they stubbornly refuse to read what we publish then they are entitled of course to stubbornly refuse to read that, or anything else . . .

" they are not entitled to claim that they have not been informed," said the High Court judge, who has supervised the preparation of the commission's explanations.

He went on: "It is fair to say that if people don't understand, they feel disempowered and they won't vote. If they do understand, they are much more likely to vote.

"After that, they are entitled to exercise their democratic choice in whatever way they wish," he said.

The Referendum Commission reserves the right to intervene during the weeks ahead, "if there is a need during the campaign for further statements" to counteract "serious confusion or misconception" about the treaty's contents.

Mr Justice O'Neill said, however, the independent body would not intervene if the Yes and No camp clashed on issues that have nothing to do with the treaty.

"There may well be things arising during the debate that are not part of the treaty and that will be no concern of ours."

Meanwhile, Minister of State for European Affairs Dick Roche clashed strongly with Libertas, the No campaign group funded by businessman Declan Ganley.

Libertas's claims that Lisbon would affect the Common Agricultural Policy were "a bit rich" given Mr Ganley's past criticisms of the policy, when he described it as "a weapon of mass destruction", said Mr Roche.

The Minister has cautioned farmers not to heed calls to vote No, he said, over their concerns about World Trade Organisation (WTO) as these talks will take another year to finish and have nothing to do with the referendum.

The Government's ability to secure a good deal for Ireland - and secure the support of the French for Irish farmers - will be compromised by a No vote, the Minister of State cautioned.

The handling of the WTO talks by commissioner Peter Mandelson, who was given a tight negotiating hand by the EU, is causing concern not just in Ireland, but also in Germany and France.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times