Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I decided to come to the Dáil for an extension of the scheme, not to amend it. I am aware of the views expressed in that letter. Similar views were expressed to me directly by representatives of the aircraft leasing industry but I do not think the case was strong enough to make the alterations that were being requested. A lot of the time in these matters, it is a matter of judgment. It is hard to know whether the advantages that are being claimed will result or not. I have a note here as to why the scheme would not be open to new hires, which was the burden of the letter from the Minister for Transport, Tourism and Sport quoted by Deputy McGrath. It related to why someone must be employed in another country before moving to Ireland.

As part of the SARP review in 2014, the proposal to include new hires was considered but it was felt that to include new hires could cause job displacement in the Irish labour market. For example, if an Irish tax-resident individual and a foreign-based individual with similar skills both applied for the same job, it would be less costly for the employer to hire the foreign-based individual. This would place the Irish tax-resident individual at a considerable disadvantage so that is the principal reason I did not amend the scheme.

Deputies will appreciate that Ministers and Deputies, including Opposition spokespersons, are lobbied. To paraphrase W. B. Yeats, sometimes it is very hard to tell the dancer from the dance. When they are making claims about a huge economic advantage to the Republic of Ireland, one does not know whether they are simply advancing a personal case. It is always a line ball call but in considering this, I think it is worth proposing to the Deputy that we extend the scheme without amendment and the scheme concludes as currently enacted at the end of 2017. We are giving advance notice because there are many people looking again at Ireland - people considering whether they will transfer business from the UK to Ireland or many US investors considering whether they will change the plan they had to invest in the UK and invest in Ireland instead. We are positioning ourselves to make sure we are competitive. I agree that this is a small part of the IDA offers and there are many other considerations that are far more important.