Paul Connaughton (Galway East, Fine Gael)

I am pleased to have the opportunity to speak on Second Stage of the Companies (Amendment) Bill 2012. Increasing Ireland's competitiveness in the global market place is absolutely essential in order to effect a reversal in the economic fortunes of the country. As more countries experience recession, the task of securing foreign direct investment becomes even more difficult. It is imperative that Ireland builds on its many advantages for foreign companies seeking a European base by ensuring that its company law is as streamlined and as easy to navigate as possible.

The amendments contained in this Bill seek to extend the period of time in which certain Irish incorporated companies can prepare and file their accounts under an accounting framework that applies in the USA, from the end of 2015 to the end of 2020.

This Government has prioritised the encouragement and facilitation of foreign direct investment and this Bill is one of a raft of measures being undertaken to ensure that the necessary housekeeping is done to smooth the way for companies considering investing here. Foreign direct investment accounts for one in seven jobs in Ireland, a staggering 250,000 jobs. What is particularly encouraging is that jobs continue to be created and to date this year, the creation of 4,000 jobs in 25 separate investments has been announced.

The ability to attract jobs, given the current unprecedented financial turbulence, is particularly commendable It is often the case that financial uncertainty creates an entrenchment which makes new investment less attractive and so the successes to date are very significant. However, every Member of this House is only too aware of the significant number of people who are currently unemployed and job creation remains a top priority. Thus, it is critical that every possible step is taken to ensure that Ireland becomes increasingly competitive in the global market.

A skilled workforce, attractive tax regime, English language usage and a cohort of multinational companies already based in Ireland, are just some of the attractions, but a pro-business environment is also extremely important and that is what this Bill seeks to effect. The WorldCompetitiveness Yearbook for 2011, ranked Ireland first in the world for business legislation for foreign investors and the attitude which underlies this first-rate ranking is reflected in this Bill.

Economic circumstances are changing at a rapid rate. The ability to adapt quickly and properly to the given circumstances will be critical in the months and years ahead. The need to meet evolving needs is a key consideration for any nation. With such a state of flux in world markets, pressure will be maintained to identify new opportunities and to create the conditions necessary to attract investment to Ireland.

The lack of uniform accounting standards is a constant headache for multinational companies and has also been an issue of international political concern, especially among G20 leaders. There is ongoing work to unify US accounting practices and the international financial reporting standards which are used in Ireland, but this work is slow and hopes that this work would have been completed by 2015 will not be realised. This Bill is necessary as it seeks to provide confidence as to the future accounting rules for companies either already located here or those considering locating here. The Bill will eliminate duplication of cost and effort for such companies as they will not be required to prepare two sets of accounts under two sets of accounting standards. This is a further common-sense measure being taken by this Government to return Ireland to the highest ranks in terms of international competitiveness and I commend all involved as their work will help smooth the financial path for American multinationals already located in Ireland and also for those considering locating a European headquarters in Ireland.

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