Peter Power (Limerick East, Fianna Fail)

I share the Deputy's concerns and assure him that Irish Aid is very active on this issue. I am glad the Christian Aid report acknowledges that the Government is aware of the importance of a coherent and effective development aid response.

In regard to mineral rich countries such as Tanzania, which the Deputy cites, Uganda and Zambia, the extractive industry transparency initiative, which is part of the EU-Africa governance partnership, has been instrumental in supporting improved governance and accountability through the verification and full publication of company payments and government revenues from oil, gas and mining. Further progress on this initiative is being encouraged by Irish Aid.

The Deputy's basic point is that multinational companies use their huge capacity and the professional advice available to them to engage in abhorrent practices, including transfer pricing and false invoicing. While Irish Aid's programmes are not directly affected by these illicit practices, they have the capacity to undermine all development actors in the countries with which we work. For this reason, we need a global approach which would involve the G20, the EU and the OECD.

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