Terence Flanagan (Dublin North East, Fine Gael)

I propose to share time with Deputy Paul Connaughton. I welcome this short and focused Companies (Amendment) Bill, which extends the period by which certain companies can use the US accounting framework rather than the accounting framework used in Ireland. Generally, the international financial reporting standards, IFRS, system is used in Ireland but this Bill will allow US companies to use the general accepted accounting principles, GAAP, system until the end of 2020. This was to be phased out by 2015 but there is no global agreement on the accounting rules and how companies in different countries use different rules. Accordingly, this is being extended. The Bill will be particularly of interest to US multinationals and the companies they deal with. It will save time and cost for those who have offices in Ireland. It will improve efficiency and also Ireland's competitiveness and attractiveness as a location in which the US looks to invest.

Ireland ranks high in the IMD world competitiveness survey. It is ranked first for the availability of skilled labour, first for investment incentives and first for the flexibility and adaptability of our workforce. These are three important areas that should encourage investment in the country. In 2011, Ireland was ranked second for openness to foreign investors, another reason why we should attract investment. The strong "Yes" vote on the stability treaty endorsed the perception of Ireland as a stable country and endorsed the confidence that we are on the road to recovery. One of the priorities of the IDA is to attract more foreign direct investment to Ireland, as outlined in its strategy documents.

The US has been an investor in Ireland for a long time. It believes in the strengths and talents of the Irish workforce. This country has a good future. More than 100,000 workers are in US multinational companies and over 50% of foreign direct investment in Ireland has come from the US over the past five years. One in seven jobs in Ireland comes from foreign direct investment. This Government is determined to get Ireland back on track and to be numbered among the top five countries for international competitiveness, an ambition which is aided by the low corporation tax rate of 12.5%.

I refer to the welcome announcements in recent months by US multinational companies. Hewlett Packard announced 280 jobs in Kildare and in Galway. PayPal announced the creation of 1,000 jobs in its European, Middle East and Africa customer service headquarters to be based in Dundalk. Both Eli Lilly and Apple announced that they would each create 500 jobs in Cork. Mylan is a US multinational pharmaceutical company announced 300 jobs in the Baldoyle industrial estate in my constituency of Dublin North-East and a further 200 jobs in the Minister of State, Deputy Dinny McGinley's constituency. This announcement is much appreciated and welcomed by our constituents. The chief executive officer of Mylan stated that the availability of a skilled and a highly educated workforce with a strong work ethic and a commitment to excellence had encouraged Mylan to make this further investment in Ireland.

We need to have self-belief and be confident that we are taking the right steps to take our country out of recession. The Taoiseach recently led a trade mission to China and he was accompanied by the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney. It is hoped this visit will lead to announcements of job creation in the future. Some contracts and agreements have already been signed and the Government is working to promote and encourage foreign direct investment into Ireland.

Foreign direct investment generates 70% of corporation tax and it contributes to expenditure of €19 billion in the economy and generates €110 billion in exports. This investment should be encouraged and the provisions in this Bill will help to make Ireland a more attractive option for international companies to expand and to set up business in Ireland. It will allow US companies to prepare their Irish accounts using the US GAAP accounting standards and this will create a more efficient system and companies will incur fewer costs. Any provision that allows for lower costs and less red tape is to be welcomed.

We all want to see further foreign direct investment in Ireland and less bureaucracy for business. I commend the Bill to the House.

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