Brian Cowen (Laois-Offaly, Fianna Fail)

I am sorry but I am not getting involved in an argument with the Deputy. I am answering the question he has raised and giving him my strong view on these matters. There is no equivocation by my Government on these matters. There is none on either the issue itself or the nature of the assurances I have received from a country that I regard as a friend of this country.

On Deputy Naughten's question on Afghanistan, President Obama noted our record on development and believed it offered a range of opportunities for co-operation. He indicated that a review of the Afghanistan issue by General Jones is under way. He cited crop substitution programmes, judicial reform and literacy campaigns as areas in which Ireland and other countries could have a positive input.

With regard to tax deferral, the issue is at a very early stage of legislative intent, given that there is to be legislation. Suggestions have changed regarding tax deferral and it must not have significant implications for us. President Obama said he was mindful of our interest in this issue and that the United States will not take action without consultation. He said he was aware that these are complex issues with an impact on global financial flows. There was strong sentiment in the United States that the tax system should not encourage an exodus of jobs. That was a very fair point on President Obama's part. He stated the challenge was to strike the right balance between supporting domestic employment and staying outward looking and that it is a question of ensuring US companies are in a position to invest in countries such as Ireland and maintain competitiveness overseas. He also made the point that this is not an issue to be resolved over night. Over time, it might be possible to develop a package that involves issues for domestic economic policy in the United States. President Obama is mindful of the possible impact on Ireland and he will act with caution and will be ready to discuss any potential unintended consequences.

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