Brian Cowen (Laois-Offaly, Fianna Fail)

The US President confirmed a US envoy to Ireland would be appointed. I welcomed this as an envoy has a role to play in the bedding down of the peace process. Most important, the contribution of the United States in emphasising the economic dividend of the peace process has been highly effective. It has leveraged much goodwill and investment projects not only in Northern Ireland but the island of Ireland.

The tax haven issue arose in some documentation relating to audits that emanated from one of the congressional offices. It has been taken off the list since our diplomats in the United States brought it to attention. There is no indication or question of the US President or others regarding Ireland as a tax haven. They understand we have double taxation treaties and meet all the relevant transparency criteria.

Tax deferrals are more complex issues. The challenge is to strike the right balance between supporting domestic employment and staying outward looking in ensuring US companies are in a position to invest in countries such as Ireland and maintain competitiveness overseas. I made the strong point to the US President that every $1 invested by US companies in Ireland brought a return investment of $3.50 to the US. By internationalising their business, they become more competitive.

Concerning Deputy Gilmore's earlier question on Leaders' Question on job losses, this is about competitiveness and being able to provide goods and services for which there is international demand. A world economic downturn for the first time in 25 years and the worst in 80 years will have an effect on small open economies to a greater extent than others. The reduction of the growth in the Irish economy is mirrored by the experience of Singapore, Taiwan and South Korea, the ASEAN tiger economies, which have also been affected by the international economic downturn. It is not surprising given the small domestic markets that are available to absorb what we produce and our reliance on exports as a large percentage of we produce.

The strategic document sets out for the next 20 years, at least, what the relationship with America should mean. It highlights the approach needed rather than allowing some people to characterise it as being based on sentimentality or the vacuous suggestion our relationship with the US should be reduced to the presentation of a bowl of shamrock on St. Patrick's Day. Those who characterise it in that way are usually expressing their own latent anti-Americanism. The relationship with the US is far more than that and has brought much progress to this country. It is bilateral and has been of mutual benefit. Ireland now has a developed economy rather than a developing one. Irish industry has become internationalised in the United States, as elsewhere, providing direct jobs which are commensurate to the number of jobs provided by US companies in Ireland. That is not well known in Ireland, let alone in the United States. It is an important point that needs to be made rather than characterising the relationship as Ireland being less than an equal, where it must go cap in hand to the United States. That is not the way either we or the US sees the relationship. There are still a few in this country who like to see it that way as it suits their dated thinking.

The question is how we can engage with America in a way that will bring mutual benefit. It is in the same way we want to engage in Northern Ireland with those of a different tradition to bring mutual benefit. The way is through the various recommendations outlined in the ambassador's excellent and comprehensive report. It is not an operational programme; there are ideas, such as contacts between education systems and schools, that need to be developed. Through Science Foundation Ireland and the university sector, genuine efforts are already being made to bring research talent from the United States to work with Irish science teams in developing the goods and services of the future which can be commercialised for the jobs of the future.

The undertaking of the strategic review was timely. It was the first initiative I took when I became Taoiseach and visited the United States last July. I am grateful for the work on the document by the ambassador and his team. It involved wide consultations with an engaged Irish-American community which appreciated the initiative and has seen much good come from it. It sets the scene for developing the relationship in a substantive way in the years ahead.

See this speech in context