Micheál Martin (Cork South Central, Fianna Fail)

The issue is as follows. The European Commission and its officials must operate in the context of the regional aid guidelines and multisectoral framework that have been passed by the member states. Ireland entered a number of submissions on that, particularly for large projects. There was a footnote attached to the multisectoral framework which we argued should allow for innovation in terms of large-scale projects, even where the company may have a dominant share of the market. In one previously highly publicised case, that argument did not win through.

The number of projects caught up in this sort of multisectoral framework is few. The majority of projects do not necessitate notification. Notification can be necessary under a range of criteria. Enjoying in excess of 25% of market share is a key one and it is one which affects this case. We are engaged with the Commission at present, answering questions and responding with information on the market share of the company concerned.

The issue the Deputy has raised is more general. It is not a political problem for Ireland vis-À-vis the Commission. It is really about the competitive position of Europe vis-À-vis other trading blocks across the globe and in terms of overall globalisation.

We in Ireland have a view and have made a submission to a review being undertaken of those regional aid guidelines and the new multisectoral framework for large investment projects. We have made the point that Ireland often wins these projects not from European member states but from countries in Asia, South America or elsewhere. We submitted that this point should be taken on board and that Europe as an entity must be competitive and must face up to competition in terms of effective corporation tax rates in the context of the state aid policies of non-EU countries. We have concerns about that overall position.

The good news is that the significant players see Ireland as an attractive location for industry and for high-end activities. The activities plan in this respect is relatively good for 2005. I have accompanied IDA Ireland on a number of trade missions and we are working hard to position Ireland as an attractive location. That continues to be the position.

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