Pearse Doherty (Donegal, Sinn Fein)

Approximately 700 people will avail of the deduction this year. Their tax reduction comes to about €7,000, as far as I understand it from the latest data I was able to ascertain. A proposal such as this, intending to assist companies to develop emerging markets for exports, is good. I have no problem with it. I have a problem with the fact that we are extending it with Russia included, notwithstanding the fact that the Minister is going to go away and look at that. I cannot support that at this point because it is an extension rather than a continuation of existing policy. However, I hope that will be dealt with.

The wider issue is that it does not have to relate to export-related activities. That is the problem. The intention was always about new markets. I hear what the Minister said, which is that a company may not be involved in exports at this time but the person who is on the ground is creating the opportunity for exports next year or the year after. I understand that. Let us consider a scenario, and I ask the Minister to tell me if it is feasible. Can an individual benefit from the foreign earnings deduction if the company is not involved in exporting? Let us say that I set up a company that is involved in retail. I sell products to the Irish market. Those products are produced in, for example, China, as many products are, and I have people on the ground there managing that activity for my company in Donegal or wherever. I have no intention ever to sell whatever I am selling, perhaps Leprechaun images or whatever else, in China. I have no interest in that. Therefore, I am not involved in exports. Because those people in China are employees of the company and have to be there, because they need to be hands-on and looking at what the manufacturers are doing, they are able to avail of this deduction but their activity is not export related. Is that not the case?