Seanad debates

Tuesday, 15 July 2014

8:40 pm

Photo of Pat O'NeillPat O'Neill (Fine Gael)
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I welcome the new Minister of State at the Department of Education and Skills, Deputy Damien English, on his debut appearance in the Seanad.

Photo of Averil PowerAveril Power (Fianna Fail)
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I, too, welcome the Minister of State, Deputy Damien English, and congratulate him on his promotion, which is richly deserved. He is one of the few Members on the Government side who regularly makes the trek, as I often do, out to Ballymount. Anybody who is willing to go a few rounds with Vincent is more than able for the job the Minister of State has just been given. As Seanad spokesman on education for my party, our swords will undoubtedly cross at times, but I look forward to working with him and wish him well for the future.

I have tabled this Adjournment matter to highlight the need for Ireland to re-establish its representative office in Taipei, given the significant potential for greater economic and cultural links between this country and Taiwan. I recently visited Taiwan as part of an Oireachtas delegation and was hugely impressed by the country's economic progress, respect for human rights and high-quality health service.

Economically, Taiwan is doing extremely well. Indeed, from 1952 to 2012, it achieved an average annual economic growth rate of 7.3%, one of the fastest growth rates in the world. While that rate has slowed in recent years in the context of the wider economic environment and the impact of the global financial downturn, the international economic crisis has had a much lighter impact on Taiwan than on other developed economies, including our own. The country's unemployment rate is below 4% and the proportion of people living below the poverty line is 1.5%.

Taiwan also has a world-class health service, with a national insurance system far superior to the Dutch model the Government seems intent on emulating. This is an issue I intend to raise with the new Minister for Health, who has just left the Chamber. It is an excellent system based on compulsory health insurance, with everybody paying into the system through the taxation regime. There are no private providers competing for insurance premia, as is expected in our system. Instead, competition is at the point of delivery, with providers competing to provide services and thereby helping to ensure costs are kept as low as possible. The Taiwanese authorities have managed to eliminate waiting lists in the system and provide a top-class service. There is much we can learn from their experience.

In recent years, Taiwan has become one of Asia's main providers of foreign direct investment, ranking only behind Japan, mainland China, Hong Kong and Singapore. The opportunities for Irish export companies are immense. Food companies, in particular, could find a huge market there. During our visit to Taiwan we discovered that although it currently imports much of its beef from the United States, there is an awareness of the superiority of Irish beef as a result of the conditions in which cattle are reared and the rules in regard to feed and so on. The Taiwanese would like to import Irish beef but it requires a broader trade agreement to facilitate that. More generally, there is scope for a range of Irish enterprises to build business partnerships with local companies which would help them to succeed not only in Taiwan but also in mainland China and Asia. In other words, Taiwan could potentially be a significant gateway for Irish companies into Asia.

There is also great potential to encourage more tourism from Taiwan. The last Government introduced in a 90-day visa waiver for Taiwanese tourists, which allows them to visit Ireland without having to go through the administrative rigmarole of obtaining a visa. However, the number of tourists coming here is still very small. The reason may well be that there is very little on-the-ground promotion of Ireland as a tourist destination. There is no office there selling Ireland as a place Taiwanese people should visit.

There is also considerable potential to attract more Taiwanese students to our third level colleges and English language schools. The potential is there, too, for greater cultural links between the two countries. As part of our visit, we attended the very successful Irish dancing school in Taipei. It was interesting to see Taiwanese men and women enjoying Irish dancing, including competitively.

As I have outlined, there are opportunities for closer co-operation on many different levels, but Ireland is not realising those opportunities. One of the main inhibiting factors is the impact of the closure of the former representative office some years ago as part of the broader reduction in the number of embassies. Earlier this year the Government reopened the Vatican Embassy and opened new embassies in other countries. It is time now to examine the case for reopening the Taiwanese office. Eighteen other EU countries have representative offices there, in addition to the EU office. One of the main benefits of this presence is the monthly meeting between the representatives of the various offices and the EU office to discuss trade opportunities. We are missing out on that by having no representation. I urge the Minister of State to use any influence he has with the Minister for Foreign Affairs to ensure the office in Taipei is reopened.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I thank the Acting Chairman for his kind words. I was in the Gallery of this Chamber only last week thinking I would not mind being in here some day. I did not expect it to happen so soon and in this capacity. It is funny how things turn out. I also thank Senator Power for her warm words. I have enjoyed our time working together on the education committee. No doubt we will still be making trips out to Uncle Vincent; I am sure I will not escape that particular task in my new role. Those engagements help to keep all of us on our toes, which is no harm.

Turning to the issue before us, I am taking this matter on behalf of the Minister for Foreign Affairs and Trade, Deputy Charles Flanagan, and the Minister of State, Deputy Sean Sherlock, both of whom are sorry they cannot be here. I will convey the Senator's points to them. It is an issue in which I have an interest. In fact, I had initially intended to be part of the Oireachtas delegation to Taiwan and was sorry I missed it. It sounds like a very interesting place and a very positive experience.

Ireland, along with all EU trade partners, adheres to the One-China policy and, as a result, cannot have diplomatic relations with Taiwan. This, however, does not preclude the development of economic and trade relations. There was an Irish trade office in Taipei from 1989 until 2011, opened originally under the auspices of IBEC and with funding primarily provided by IDA Ireland. The decision to close it in 2011 was taken by IDA Ireland on a purely commercial basis. The State agencies keep their allocation of resources under review in order to promote Ireland's economic interests as effectively as possible.

Reopening a trade office in Taiwan may be considered by the State agencies if a commercial case could be made for it. The Senator has made a strong case and I will ask that it be considered.

The Government has made extensive efforts to boost trade with China, including the official visit by now President Xi Jinping to Ireland in 2012, followed by the return visits to China by the Taoiseach and then the Tánaiste in 2012 and 2013. Vice Premier Ma Kai visited Ireland in November 2013 and last month saw another high-level visit by Liu Yunshan, a leading member of the Politburo Standing Committee of the Communist Party of China. Total trade in goods and services between Ireland and China amounted to approximately €8 billion in 2012.

Ireland's trade with Taiwan is substantial, particularly with regard to services. In 2013, merchandise trade amounted to €344 million. Of that, exports amounted to €130 million and imports to €214 million. Trade in services in 2012 was €585 million, with €504 million in exports and €81 million in imports. The Government is keen to continue building such trade relations and promoting other commercial links. For example, the possibility of concluding a double taxation agreement between Ireland and Taiwan is being examined.

Regarding other ongoing engagements, Taiwan has been included in Ireland's working holiday programme since 2012. Ireland and EU partners have also supported, where appropriate, Taiwan's observerships at the multilateral level and there are regular exchanges at working groups and other forums. Ireland contributes to the regular and comprehensive EU dialogue with Taiwan.

Relations between China and Taiwan have improved markedly of late, with the first official talks between the two sides since 1949 taking place in February 2014 in Nanjing, China, and return talks in Taipei in June. The Government welcomes this development.

Ireland is opening three new missions in Thailand, Indonesia and Hong Kong this year, demonstrating its commitment to building relations with Asia. Trade with Asia is worth €23 billion annually and the region will continue to be the driver of the global economy in the years ahead. I thank the Senator for her comments and interest and I will brief the two Ministers accordingly.

8:50 pm

Photo of Averil PowerAveril Power (Fianna Fail)
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I thank the Minister of State for his reply and his assurance that he will raise the matter with the Department of Foreign Affairs and Trade. He stated that the decision to close the IDA office was made on commercial grounds, but there are strong commercial reasons to reopen it. The 2013 trade figures represent a drop in the ocean compared with what we could be achieving in Taiwan. It is a shame.

I also noted the Minister of State's reference to Ireland's one-China policy, which seems to be making us reticent about developing closer links with Taiwan. That is also a shame. The policy has not stopped 18 other European countries from having representative offices in Taiwan. We should embrace Taiwan. As the Minister of State noted, relations between China and Taiwan are improving. We should not be reticent about stepping up, supporting the Taiwanese people and developing closer links.

While there, I was most struck by Taiwan's respect for human rights. It is strong on freedom of expression and belief and protects its people's human rights in ways that, unfortunately, have not yet reached mainland China. As a country that has always promoted human rights in its foreign policy, we should support Taiwan in every way possible in that respect.

I urge the Minister of State to bring my points to the attention of the Minister for Foreign Affairs and Trade. I also urge the Government to send a trade delegation to examine the commercial arguments for reopening an office. It would be significant if a Minister or Minister of State was sent with representatives from the IDA or Enterprise Ireland to examine the environment and opportunities before making an informed decision on how to proceed.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I thank the Senator and will bring her comments to the Minister's attention. It is important that Ministers of State engage with the Senator and those of her colleagues who have visited Taiwan. Apart from trade, the Senator also mentioned the culture and dancing. Perhaps we could take the matter from there. I will brief the Ministers on her valid arguments, which are worth considering. Perhaps we could co-ordinate a message with the Senator and her colleagues who have travelled there in the past three or four years and get some feedback.

I apologise for the Minister, who is not able to attend.