Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Bhí an cur i láthair sin an-suimiúil. It goes without saying that the relationship between Ireland and the US is of great importance, as is the success of Ireland in attracting foreign direct investment and of US companies operating here. This relationship must be strengthened and developed. It is startling to note that 107,000 people are employed by US firms, while Irish firms employ 120,000 people in the US. I hope the balance will improve. The reason the figure is so startling is that we tend to believe the relationship is much more proportionate to the sizes of the respective countries.

I could focus my entire contribution on the positive relationships between Ireland and the US where much that is good is taking place. However, one aspect of my role is to highlight issues that could be resolved by the Legislature. Between January and August last year, exports to the US amounted to €14 billion. Over the same period this year, the value of exports to the US declined by €2 billion. The issue of the so-called "patents cliff" has given rise to much discussion here because approximately 60% of our exports are in pharmaceuticals and chemicals. Is there any relationship between the reduction in exports to the US this year and the patents cliff and, if not, can the delegation assist in identifying the reasons for the decline?

All the main parties in the Dáil, including Sinn Féin, support Government policy on corporation tax, which has been important in attracting US investment. However, the State does not focus sufficiently on improving other potential competitive advantages. I am concerned that we may become a bargain basement tax location rather than a country that trades on competitive advantages such as high levels of productivity, low energy costs and good access to export markets, all of which are important for companies. We know how Ireland's tax policies play on the economic front, including with the American Chamber of Commerce. However, as we approach the presidential election in the US, we must bear in mind that they also play on the political front. I note startling figures indicating that €27.8 billion of profits were generated by US companies operating in Ireland and €28 billion in royalties were repatriated. The so-called double Irish taxation system and other issues have also arisen. The Irish Times recently reported that the effective corporation tax rate here is 4% when one takes account of the various activities companies engage in - logically, from their perspective - to reduce their tax liabilities. In highlighting these issues, I stress that they are only one aspect of an enterprise relationship with the US that is, for the most part, successful, positive and growing. I ask the delegation to respond.