Brian Cowen (Laois-Offaly, Fianna Fail)

While I accept that things are said in campaign speeches, I do not minimise the import of what has been said. I do not wish to draw conclusions which may be adverse to our interests as to do so would be to take a leap too far. As I stated, this type of issue has arisen in the past in terms of treatment of tax treaties, etc., and we have always negotiated, worked and used the goodwill of our relationship to help inform discussions and ensure people see that the arrangement is a mutual benefit which reflects genuine economic activity. Sometimes changes in tax treaties arise because in the case of designated tax havens there is seen to be a diversion of funds in the absence of activity. This is very hard to justify. However, that is not the position in terms of the US investment trend in Ireland — quite the contrary.

Regardless of which candidate won the election, the United States has a budgetary issue because a serious deficit has arisen. There are also fewer savings and far greater consumption. The incoming US Administration, as in the case of every other administration, faces huge budgetary challenges in the context of the international financial and economic crisis. I recall a conversation I had with Mr. Robert Rubin, a former Treasury Secretary who is president of Citigroup, when I met him in the context of an important investment his company was making in an international e-banking project. The project is being conducted from the company's Irish operation and I compliment it on its success in obtaining this type of work from such a reputable organisation. Mr. Rubin said that generally speaking the budgetary issue would have to be addressed regardless of who was President Bush's successor. This, he said, would involve consideration of the usual expenditure issues as well as taxation issues. Again, nothing further was said apart from this general point, which is quite obvious. In view of the commitments and expenditure programmes in which it is engaged, the budgetary and economic challenge facing the United States, as resilient and successful an economy as it has proven to be, is no less than it was in the past. It is perhaps even greater in some respects.

On the Deputy's final point, the group of Ministers which has been meeting on this matter is advancing the programme of Government commitments and indicating the way in which this is being done. We have been happy to rely on the assurances given to us by the outgoing administration that rendition is not taking place through our airports. The Government will take the opportunity to inquire as to the intentions of the incoming US Administration regarding the continuance of operations in Guantanamo Bay and, as a friendly country, seek assurances in whatever way we can confirming compliance with human rights requirements, including on the issue of torture etc. and information on the activities and policies the incoming administration intends to pursue to ensure such issues do not remain on the agenda in the international arena.

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