Simon Harris (Wicklow, Fine Gael) | Oireachtas source

We are not allowed to name people.

Deputy Boyd Barrett was concerned that the Bill was about avoiding tax or regulation. I suggest that he read it in advance of Committee Stage and have an exchange with us then. Some 64 sections give rise to an offence.

As to the question of tax advantages for investors in ICAVs, it is important to reiterate that, while investors in undertakings for collective investment in transferable securities, UCITS, or alternative investment fund structures like ICAVs may be able to avail of the US check-the-box tax treatment, which is already available to unit trusts, common contractual funds and investment limited partnerships, the tax treatment of any fund structure is a matter for each jurisdiction where the liability arises and such "look through" vehicles have long been available to fund promoters in Ireland and across Europe.

Deputy Pearse Doherty asked whether we were simply introducing this legislation to compete with Luxembourg. My colleague, Deputy Twomey, alluded to this matter. Luxembourg has a similar vehicle, but so does Italy, Spain, France, the UK, Germany and the USA. Deputy Michael McGrath summed up the situation well, in that the House needs to make a collective effort - that is the Government's wish - so that our structures can "catch up" and be fit for purpose. Let us make the jobs of the people who are travelling the world promoting Ireland as a location for employment and investment easier by ensuring that the structures we have in place are like those used by our competitors. If we do not do so, we will get left behind.

I want to answer as many questions as possible. The ICAV Bill should not be seen in isolation as a technical exercise to make the lives of fund managers or their accountants or lawyers easier. The legislation's intention is to bring Ireland to a point where we can compete on an even footing with other European fund domiciles. We should not cede ground to our competitors when it could mean the loss of investment. I did not get appointed as the Minister of State with responsibility for international banking and the IFSC to cede ground. I have been appointed to provide political oversight, bring the public sector together and ensure that we have fit-for-purpose structures and innovative products and that we are ready to compete for more jobs and investment. While one cannot be certain as to the precise number of new jobs that will result from the availability of the ICAV structure, past evidence suggests that industry makes use of whatever vehicles are available. The fact that we will not need to apply unnecessary company law requirements arising from EU obligations to ICAVs will be a bonus.

As drafted, the Bill cross-applies a number of provisions of the Companies Act. On further reflection, it may be desirable to set out some of these regimes in a more extensive form. I expect to conclude my consideration of where this might be most appropriate in the near future. If necessary, I will table proposals on Committee Stage in this regard and consider amendments from colleagues on all sides.

Deputy Ross admitted that he sometimes got things wrong. He got some things wrong today. It is wrong to name in the House an individual or series of individuals, apply derogatory terms like "cronies" and "stooges" and imply that having political affiliations or being involved in political life somehow makes someone a bad person or debars one from contributing to State agencies. I heard him make the same comment in respect of the Garda, the Judiciary and State boards. We need transparent procedures for appointments to State boards. My colleague, the Minister for Public Expenditure and Reform, outlined reforms on behalf of the Government this week. My party has made mistakes, but I would suggest that every party and Independent in the House has done so. We must put reforms and mechanisms in place. In doing so, however, let us not suggest unfairly that everyone who serves on a board or has been appointed to a Garda or judicial position is somehow unable. The sort of commentary in which someone shouts, roars and makes wild statements before leaving the House without listening to my response, which was requested, is unhelpful. We need to reform the system. Deputy Ross has previously suggested various individuals for senior appointments to banking positions.

Were I to name those individuals, which I will not, I might even make him blush. Consequently, Members should not try to be whiter than white here. Members should look at the system and together should introduce the reforms.

I will conclude on this point but there was also a comment on the broader, global taxation issues. While this issue is not directly related to this Bill, it is fair that it is brought up in the context of international banking. Again, however, one should not pretend that nothing is happening in this regard. An OECD discussion is under way, as is the base erosion and profit shifting, BEPS, process and the Department of Finance has opened this process to public consultation and submissions were received. Moreover, the first series of reports are available. It is fair to state that Ireland, as a small open economy with a small population, must move in line with our international partners. We need global action on this issue as it is a global matter. This is not to state - I see Deputy Mathews appears animated - there are not measures the Government could take and may take and obviously, there will be a budget next Tuesday.

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