Brian Cowen (Laois-Offaly, Fianna Fail)

I raised the tax deferral issue with President Obama when I met him on Saint Patrick's Day. At that time, the President confirmed that this was an issue not to be resolved overnight. He was mindful of the possible impact on Ireland, but he would act with caution and would be ready to discuss any potential unintended consequences. The Tánaiste also met with senior members of the US Administration to discuss the issue, including the Treasury Secretary, Mr. Geithner, in a visit to Washington on 20 and 21 April.

The proposals published on 4 May now go to the US Congress for consideration and these have potentially wide ranging effects on investments made by US companies worldwide. The US will be anxious not to hurt its global competitiveness. A senior IDA executive is working with our embassy in Washington to monitor and engage with the issue. Senior officials of the Department of Enterprise, Trade and Employment, the Department of Finance and the Department of Foreign Affairs, the IDA and the Revenue Commissioners have been meeting regularly on US tax policy issues. The Government will continue to ensure that the message of the positive experience of US companies based in Ireland and competing in Europe feeds into the deliberations of the Obama Administration and of the US Congress.

One of the cornerstones of America's success has been its leading role as a global trading nation. The US National Bureau for Economic Research has estimated that every dollar invested abroad by American multinational companies generates $3.50 in investment back in the US. American companies have invested in Ireland not out of sentiment but because they have seen excellent returns. These investments generate profits which protect and create jobs and investment in both Ireland and the US. They help to develop the centres of management excellence, the active networks and the deep pools of knowledge that are essential to economic recovery in both countries.

The Irish-American leadership council has not yet been set up, but the Minister for Foreign Affairs is working on it. We are also looking at bringing a major seminar to Ireland in September, which will be a timely occasion to proceed with that initiative. Our embassy, staff and ambassador will be maintaining a close liaison with the various committees of the House of Representatives who will be dealing with the Obama proposals, including the ways and means committee. We expect Congressman Richie Neal to be the vice chairman. He has been an outstanding friend to Ireland over many years and on many issues. We also have a number of contacts in Congress that will enable us to monitor closely congressional thinking on these matters. As I stated, this is a process that will continue for some months, if not years.

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