Seán Sherlock (Cork East, Labour) | Oireachtas source

The Deputy is taking a novel approach, which I admire, but I am not in favour of adopting these amendments. The Deputy's proposals impose unduly oppressive conditions on legitimate businesses. The suggestion that a majority of directors should be EEA-resident may particularly dissuade foreign direct investment companies from doing business in this country, which would be bad for Ireland and for Irish commerce generally. Section 138, which re-enacts existing law, ensures that companies which do not have at least one director who is resident in an EEA state must put in place a bond, in the prescribed form, that becomes payable to a person nominated by the registrar or the Revenue Commissioners. The purpose of the bond is to discharge any fine imposed on the company in respect of an offence committed by it and prosecutable by the registrar or for the purpose of discharging certain fines and penalties imposed on it by the Taxes Consolidation Act 1997. The moneys can also be used to cover expenses that are reasonably incurred in the collection of said penalties. The bond cannot be used for any other purpose. Therefore, the amendments proposed do not achieve any legitimate policy goal. Their sole effect is to create an arbitrary restriction on non-EEA companies trying to do business in Ireland. In that context, the Government will not support the amendments.

See this speech in context