Oireachtas Joint and Select Committees

Wednesday, 12 February 2014

Joint Oireachtas Committee on Foreign Affairs and Trade

Scrutiny of EU Legislative Proposals

2:40 pm

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein) | Oireachtas source

We are all in agreement that we want to see this area fully transparent and accountable. Over the past five years, a number of assessments have come up with positive conclusions on the performance of the EDF. Some of the reviews referred to the fact that EU aid remains fragmented between EU instruments, the EDF and the budget and between national, regional, thematic and horizontal levels of action in the EU and member states' bilateral programmes. I am making the same point as Deputy Brendan Smith. They are saying that things are positive but that there are difficulties. If there is to be anything positive from today's meeting and Mr. Cotter's report, it is that we would like to hear how we can improve the system.

There are concerns about multinational companies and the view that they are getting away with tax dodging due to a lack of financial transparency or a lack of political will. There has been mention of the so-called double Irish arrangement and the allegation that by designating its office in Ireland in Cork, Mr. Cotter's county, Apple pays a tax rate equivalent to 1.9%. What can we do about that? Christian Aid estimates that tax dodging by wealthy multinational companies costs poor countries €160 billion a year and many of them are among the least developed countries. Do the witnesses agree that the EU must, as part of the package, fully commit to tax justice? We must also look towards mutually beneficial trade. I want to hear that we are trying to remove the loopholes in European law and in Irish law. What role can the committee play in this respect?

One of the big concerns is biofuels. The EU has been positive in providing some leadership but the concern of many developing countries is that European countries are going to these developing countries, including many countries the EDF is funding, and using fertile land that had previously been used for growing food. This increases the price of food locally. There is a contradiction in what we are doing. What can we do about this? Everyone wants to see more sustainable policies and to deal with climate change but we have a crazy system of countries buying carbon credits. It does not do anything to help our planet. It only encourages wasteful products and practices. Do the witnesses agree that Ireland needs to give greater leadership in this area? We are talking about pulling back on the previous agreement, particularly in respect of biofuels.

Haiti has been rocked by political instability, earthquakes and hurricanes. Can the witnesses give an overview of the EDF's involvement in that country and what is emerging?

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