Enda Kenny (Mayo, Fine Gael)

I agree that the connections which have been in place for so many years, be they in the areas of art, literature, music, politics, business, economics or trade, remain very strong. I recognise that the process relating to foreign direct investment from the United States has evolved from one where we attracted companies which produced computer hardware to a model where a great deal of computer software is now developed and produced here. Ireland provides both an English-speaking launch pad into Europe and a strong legal base. The Deputy is well aware of this and I recognise his association with helping to develop the process to which I refer. As an agency, IDA Ireland has been superb - in the face of intense worldwide competition for investment - in continuing to promote the structures, environment and skills which exist in this country. In that context, I refer again to the package of the four T's - technology, tax, talent and track record - and the importance thereof.

The chief executive of a major company based in California informed me that it sited its European operations in Dublin not just because of the common language, the corporation tax rate or the fact that this is a young and vibrant city but rather as a result of the passion of young people for their work. He further stated that it is their desire to be able to create the future and to be challenged in doing so, which makes them stand out from any of their peers across the globe. I am sure the Deputy will agree this is something of which we, as Irish citizens, can be very proud.

This morning the Government dealt with the issue of a number of US companies here which traditionally have been able to operate their accounting systems without having extra charges imposed on them by means of double accounting systems. The facility that exists in this regard has been extended.

Deputy Martin established the Global Irish Network, which is an important entity. We hope the network will evolve and change to reflect the new circumstances that exist in the US. President Obama's proposals in respect of tax did not emerge until after my visit to America. During the meetings we had, we asked the business people we met to prove how serious they are with regard to what they are doing in Ireland. A number of questions arose with regard to stability in the context of our 12.5% rate of corporation tax. As the Deputy is aware, the Government has been very clear in respect of this matter. There will be no movement in respect of the rate, which is transparent across the board and which gives rise to an actual effective rate of 11.9%. It is clear that American companies in particular welcome certainty, decisiveness and horizons against which they can plan their business. What we had to say on this matter was very much acceptable to and very much accepted by them.

As the Deputy is aware, this is an election year in the United States. The representatives from a number of companies which are big players in America and which have operations in Ireland also understand that fact. They are aware that if the US Administration were to follow through on its proposals in respect of tax, the process that would have to be undergone would be both long and tortuous. When he visited this country last year, President Obama informed me that while the recommendation was being made, he wanted to make it clear that even if the Administration were to follow through on it, the process relating to it would be very long.

During my visit to the US there was some discussion on the corporation tax rate but the main focus was on the fact that Ireland is very much seen as a country about which people are positive and in which they find it beneficial to invest. We hope to keep the link to which Deputy Martin refers very much alive and to be vibrant and energetic about our work in this regard. We inform those in business in the United States and beyond of the decisions being taken by the Government to assist the business sector here. I found the interaction with those involved in business and politics in the US extremely stimulating in the context of their interest in Ireland as a destination for continued investment in the future. The latter is extremely important, not only with regard to the jobs directly created as a result of such investment but also in the context of the knock-on effect for small and medium enterprises here which can provide supplies and facilities for the companies involved.

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