Mr. Brian Cotter:

I will respond first to the questions on the pharmaceutical industry. Senator Walsh is well aware of the strengths of the sector. I wish to link my comments to the issue of dynamics as Senator Walsh put his finger on a particular dynamic in the pharmaceutical industry. It is notable that the employment strength of the life sciences sector remains high. Significant new investment is being made here, with new companies locating to Ireland and current companies making new investments. As we discussed, this is a global competitive environment and some of the companies which have patents are looking closely at how they will compete in the relevant businesses. Some will remain and compete with a different business model, while others will divest of the relevant investments. This is a reflection of the type of activity one sees in the pharmaceutical sector, with companies asking whether the portfolio of plants they operate is suitable for the businesses in which they want to be involved.

In general, Ireland has a reputation as being a centre of excellence from a manufacturing perspective. This is a major advantage in whatever business one wishes to be engaged. From our perspective, we want to hold on to this centre of excellence in manufacturing and build upon it by ensuring companies find it attractive to invest in research and development and seek to partner with universities, etc. here in the life sciences sector. There is, therefore, much to play for in the sector. While some of the macroeconomic figures from the Central Statistics Office have been impacted by changes to patents, they do not appear to have had a significant impact on employment in the wider industry base. This is, however, an issue to watch. Speaking to members, they see more upside and opportunities, notwithstanding the obvious threats arising from the issue the Senator identified.

I agree with Deputy Crowe and an earlier questioner that there is room for more analysis. A large number of reports have been published on the investment environment. One of the interesting reports was produced by the Centre for Economic Policy Research in London, which examined intra-trade and the investment relationship. It is curious and very positive that CEPR, in its research, suggests that for American companies operating in Europe, the employment of EU workers may increase by 11%. Given the share of US investment Ireland attracts - the Chairman referred to a figure of 14% - we are very well positioned in the sectors in which US companies are involved. Moreover, there are important indigenous companies involved in these sectors. Deputy Crowe referred to the nutritional business and food. Significant investments are being made in high technology nutritional products and services, not only by US companies but also Irish companies. Kerry Group, for instance, is making an investment in west Dublin focused on innovation and research and development that will create 1,000 jobs. The group is a significant player in the ingredients marketplace in the United States. The Irish Dairy Board and Glanbia are also significant players in this sector. All of these companies trade on the excellence of manufacturing and the reputation of Irish management and workers for delivering high quality manufacturing facilities that meet the highest standards in the world. These sectors can create considerable positive spillover for small and medium-sized enterprises.

On the issue of small and medium companies, we welcome the decision to open a new chapter in TTIP looking at the impact on SMEs, in particular the commitment on both sides of the Atlantic to carry this forward past the negotiations to ensure any blockages to SME access to markets or obtaining information about how to access markets are addressed. This will be very important in enabling small companies to take advantage of opportunities.