Brian Cowen (Laois-Offaly, Fianna Fail)

Wolf Blitzer was the gentleman's name in CNN. The official position is that the EU is currently taking a common position on this matter and is engaging with the United States on the Guantanamo issue. All countries have adopted a common position. When asked a straight question, I made the point, which I stand over, that Ireland will not be found wanting in terms of making some contribution toward resolving this question. Given that we were one of the first governments to call for its closure we should perhaps be able to come up with some way of contributing to the consequences of its closure and to do so in a way that can be done.

I recall that in the past when I was Minister for Foreign Affairs we took into Ireland some Palestinians who had been involved in a stand-off with the Israelis. A siege had taken place some years ago and part of the way to resolve it was for those who were calling for it to end to take some of those people out of where they were to Ireland. We did that. The same principle should apply in this case. The detail of that will have to be worked out but if a request comes from a friend to assist it will be considered. If one welcomes the initiative taken by the Obama Administration, as I do — and I know Deputy Gilmore does — that Guantanamo should be closed, then we need to show that we will assist in that effort. That is totally consonant with our values and also with the friendship we enjoy with the United States.

On the question of a tax haven, it is very early days in terms of the tax deferral issue. Deputy Gilmore will be aware that many things have been said, as there always are during election campaigns, and one has to await the settling in of an administration to find out precisely what the intention may be or what may be the legislative intention of Congress in that area. One of the first points President Obama made in my conversation with him was important. He spoke about the recognition that all of us need to stay open to avoid undue protectionism. In other words, the worst response to the present world recession is for everybody to turn in on themselves and not to be committed to more open trade between each other. That was an important indication to me that philosophically he is very much of the view that America and American industry has a global presence.

By the same token, he is very strongly of the view that there seems to be some instances where in respect of areas of the world that are not involved in the international tax treaties to which we subscribe, the system of nameplating, as they say, where a lot of companies are situated in various parts of the world for financial purposes who do not have a substantive presence there but who are using it as a means of availing of the benign tax environment that is located in those places. He clearly feels that is something he as President, and Congress, need to address. That is an understandable domestic objective from his point of view.

That is not to say President Obama is inimical to American investment in Ireland. They are two totally separate and different issues, although one is often mixed up with the other. While I cannot give any commitments as to where all that will end up, I am satisfied, based on my discussions, that President Obama's remarks are not targeted at American industry in Ireland. He has other people in his sights and we are not top of his agenda in that respect. I was very pleased to hear that, and to hear from him that wider philosophical view that he believes America needs to be engaged with the world not only in political and diplomatic terms but also in economic terms and that it is not a question of an America first policy, simpliciter, it is a question of finding a balance, which is understandable from his perspective given the very serious economic challenges he faces and the employment issues he has to contend with as well.

I did not talk to my colleagues at a formal session but I mentioned my visit informally. The characterisation of what Deputy Gilmore said arose from what Larry Summers had to say in interviews a week or so before that. What was being emphasised by European leaders is that we have in the European model this question of economic stabilisers so that when one considers what a stimulus is, the stimulus in Europe includes not just a direct fiscal stimulus into the economic activity of the economy but also the fact that when people lose their jobs there are social security nets and income supports. These have the effect of helping to stabilise people's move to joblessness and then to return to work through training, etc. There are also various social supports and other retraining models that provide income support for people out of work.

Such social supports are not similar in the United States and therefore when one considers the full impact of the stimulus package, President Barroso would make the point that the impact of the European package is of the order of 3.3% GNP into the European economy this year. That compares favourably with stimulus packages in other parts of the world, including the United States. It is a question of a discussion taking place between Europe and the United States as to the impact of the measures each respective administration is making. I hope and believe the G20 meeting this week will indicate that there is not the same level of discord as perhaps is being suggested between both regional blocs.

The other point Deputy Gilmore raised related to the visa programme with Australia. We are trying to develop the Ireland-US bilateral visa arrangements with a new reciprocal and renewable two-year working visa arrangement. There is not a reciprocation arrangement in the Australian set-up. We believe it is preferable to have such a system so that there is a benefit to the citizens of the United States in the same way as there is for our citizens. For that reason we believe this has its attractions and that it will gain support in Congress.

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