Mr. Shane Nolan:

I will start with the key reasons some of these companies invest in Ireland. They differ depending on the company involved and the activity it wants to undertake. The common theme throughout is probably skills. One of the members of the committee asked if it was access to European markets which drove them to Ireland. Access to European markets drives them to Europe. It is a set of other characteristics, characteristics of Ireland, which attracts them here.

By and large, to companies from growth markets, with a particular focus on Asia, skills, not just technical skills but management skills also, are vitally important because many of the companies with which we deal are internationalising for the first time. They come from countries where there is no real blueprint for internationalising. There is no real superstar within their industry sector to which they can look for guidance. They are, therefore, looking for skills in Ireland, including management skills. They are looking for individuals who have previously helped US companies, by and large, to break into European markets.

I will touch on another question that was asked: what is the difference between our selling approach, or our messaging, in the US market and these markets?

In many ways our big challenge is to persuade our Asian prospects that the challenges they will face in growing a European business will be exactly the same as for US companies. It is sometimes assumed in Asia that companies from the United States come to Ireland because they know Europe and that it is all somewhat homogenous. However, when we discuss the details and the fact that the European Union is a single market with 26 flavours of legislation, language and cultures, the complexities become apparent. The skills that have been developed in Ireland to help US companies build their European businesses are also relevant to Asian companies.

Where investments have a business development theme, management skills are important. Technical skills and expertise emanating from the research community are also important. Huawei, a large Chinese electronics company and the second largest manufacturer of telecommunications equipment in the world, was drawn to Ireland by our skills in an area of telecommunications known as automated support systems. It viewed Ireland as being world class in that field thanks to a mixture of multinational and indigenous companies operating in that area.

While skills top the list, they are followed by telecommunications and transport infrastructure. Most Asian markets are brand aware, not only in consumer activities but also in terms of investment decisions. They like to know who else has invested in Ireland.

Tax is probably fourth on the list for the companies with which we engage in growth markets. Our tax regime is probably largely symbolic for these companies because it indicates consistency in Government policy. A change to the policy would indicate that other aspects of legislation were orienting towards the short term.