Brian Cowen (Laois-Offaly, Fianna Fail)

The IFSC has proved resilient in the face of the international financial crisis that has enveloped us over the past number of years. It is a matter of regret and disappointment to us all that many governance issues arose in the retail banking sector. A number of parties were sceptical and had reservations about the IFSC at the time of its initiation. They suggested that its regulatory regime would not be adequate. It is of great regret to me to see the domestic banking system is where most of the problem has arisen in terms of governance and policy issues, as distinct from the IFSC companies themselves which have been very successful trading in an area of much financial sophistication and innovation. To its credit, the reputation of the IFSC has been broadly maintained. That speaks a lot about the professionalism of the people who work there and the skills they have.

On how the IFSC itself is working, we have set out in the smart economy programme a range of measures which are needed to reinvigorate the industry, including reform of the legislative framework for financial services in this country. The update on that can be provided by the Minister for Finance if a question is put to him. Another measure is support for a targeted up-skilling programme for the industry. There has been increased support for research, development and innovation activity. Extending double taxation agreements has been an important feature. There is a need for vigorous promotion of new opportunities in areas such as specialist leasing, pensions, technology development and sovereign wealth funds.

The IFSC itself has seen the need to market the IFSC and to promote the benefits of locating in Dublin in respect of this area of activity. In a collaborative venture with the major industry associations, the Institute of Bankers in Ireland and the Stock Exchange have agreed to market the IFSC externally. As chairman, Mr. John Bruton has a role in promoting Ireland as a location for international financial services. He is participating in outbound marketing and promotional efforts including trips to the Gulf, London, New York and Paris. He will work with the IDA and IFSC firms to attract inward investment and support business development opportunities. That is a valuable resource both for the IDA and individual firms in supporting their efforts to bring investment and employment to this country.

The primary responsibility for marketing this country as a location for international financial services resides with IDA Ireland. The agency has a dedicated international financial services team with marketing executives based both at home and in overseas offices. We are extremely satisfied with their commitment to and delivery of their mandate in respect of the international financial services sector. My ministerial colleague, Deputy Batt O'Keeffe, and I have had the pleasure of meeting many financial services investors accompanied by the IDA. We have always been impressed by their knowledge of the business and the dedication and professionalism they have demonstrated. The marketing of this sector for the country is an area of high achievement. There is a long list of international financial services firms operating in the IFSC and, significantly, in regional locations throughout the country. That is a welcome development. This country is now home to more than 200 companies employing approximately 25,000 people. The sector contains some of the leading names from the world of insurance and re-insurance, fund administration, aircraft leasing, banking, investment management and financial technology.

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