Michael Ahern (Cork East, Fianna Fail)

I refer the Deputy to the Seanad debates on the Bill where some of these issues were raised. With regard to licensed production overseas, a number of non-governmental organisations have called for the imposition of controls on what they refer to as "licensed production overseas". This is the practice whereby a company based in one jurisdiction permits a second company located elsewhere to manufacture its products under licence. The issue was considered in the context of the Forfás review and, ultimately, the consultants concluded: "While provision to govern licensed production abroad is legally feasible, this is not a priority concern in the circumstances of the Irish industrial base."

In deciding not to specifically provide for the inclusion of controls on licensed production overseas, the Department also took into account that controls already apply to the export of goods and technology required for the development, production or use of military equipment and other equipment subject to export controls. Such controls would apply to exports of goods and-or technology for use in connection with overseas production. Furthermore, these controls will be enhanced with the imposition of controls under section 5 of the Bill in accordance with EU Joint Action 401/2000 CFSP of 22 June 2000, which provides for controls on technical assistance, such as repairs, maintenance, development, manufacture, assembly, testing, training and instruction and consultancy services.

With regard to end-use monitoring, contemporary international export control practice favours enhanced pre-shipment controls and the use of risk analysis programmes. The sharing of information on potential end-users of concern is a strong component of preventative action by the EU and by the international export control regimes. Where there is any reason to doubt the bona fides of the end-users, an export licence is not issued. The Department will also deny a licence where there is any reason to believe there is a risk of diversion of the goods in question to an end-use or end-user other than that stated on the licence application. This accords with criterion seven of the European Code of Conduct on Arms Exports. The code binds Ireland to take into account such criteria as the existence of internal conflicts, regional peace and security and respect for human rights when considering whether to permit the export of controlled goods. Exporting companies have a responsibility to ensure their products are not being used for nefarious purposes. In line with best international practice, the Department continues to promote the implementation of effective internal compliance programmes by Irish exporters of controlled goods.

The definition of "export" in the Bill has been widened to cover goods imported for re-export and this will enable controls to be imposed on goods in transit. On overflights, the carriage of munitions is regulated by the Department of Transport under the Air Navigation (Carriage of Munitions of War, Weapons and Dangerous Goods) Order 1973.

The European Communities (Control of Trade in Goods that may be used for Torture) Regulations 2006 provide for penalties for breach of Council Regulation 1236/2005 of 27 June 2005, which prohibits the import or export of goods that have no practical use other than for the purposes of capital punishment, torture and other cruel, inhuman or degrading treatment or punishment. The Council regulation also imposes an export authorisation requirement on certain goods that could be used for torture or other cruel, inhuman or degrading treatment or punishment. Consideration will be given to imposing a ban on the export of such equipment when updating the list of goods to be controlled in orders made under the new legislation. I am sure the matters themselves will be decided by the House when the legislation comes before it.

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