Mary Coughlan (Donegal South West, Fianna Fail)

As the proposed tax changes outlined by the US Administration on 4 May were proposals rather than detailed draft legislation, it is not possible to definitively state what the effect will be for US foreign direct investment in Ireland. However, the stated intention of the Obama Administration is primarily to target US companies which invest in countries widely considered to be tax havens. Ireland, of course, is not a tax haven nor is it considered as such by the US Government.

The Minister for Finance and I have already briefed our Cabinet colleagues on the proposed changes. Given that more than 450 American companies have already invested more than $55 billion in Ireland, we are acutely aware of the importance of potential changes to the US tax code on American investment abroad. I recently met the US Secretary of the Treasury, Mr. Timothy Geithner, and several members of the US Administration. The Government is committed to maintaining contact with the US Administration in the time ahead.

The Government has maintained a monitoring system for developments in the US international tax code for a number of years. In addition, a contact group comprising senior officials from my Department, the Departments of Finance and Foreign Affairs, the IDA and the Revenue Commissioners has been meeting to monitor ongoing developments. We will continue to engage with the US Administration and Congress as this issue develops and the initial proposal evolves into legislation. To this end, the IDA has deployed a senior executive to the Irish embassy in Washington as a point person to monitor and engage with this issue.

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