Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Fianna Fáil is supporting the Bill. People looking in and members of society in general might validly ask why it is in Ireland's national interest to join the Asian Infrastructure Investment Bank. When one looks at Ireland's strategic interests, economic development and deepening trade relations with many Asian countries, however, it becomes clear that it is certainly in our interests as a country to join.

There is, of course, a cost to this, which is €25 million over a five year period. In the context of the level of trade we have and which we aspire to have with the Asian economy it is a modest investment, which will pay a very rich return to the country. To take one example in terms of our trading relationship with China alone, which the Minister has put on the record, in 2015 bilateral trade between Ireland and China reached €11 billion. It is significant trade. In the context of Brexit, at a time when we are trying to diversify market penetration for so many Irish firms that are quite dependent on the UK economy and the UK market, having a foothold in Asia fits in very well with the objectives to lessen this dependence in terms of our trade with the UK and to diversify and widen our market penetration. The Minister of State, Deputy Eoghan Murphy, has had quite an engagement on the Asian front in the area of financial services and I am sure he will speak about this over the course of the debate on the Bill. It is a very important area for our country as we seek to attract further investment in the area of financial services.

I note the Minister for Finance of the day will become a governor of the Asian Infrastructure Investment Bank so Ireland will have a seat at the table, and this is to be welcomed. In addition, I note we will be part of a constituency of euro area member states, where Ireland will have a turn on the board of directors in terms of the more day to day operational element of the bank. It is very important to have influence at this level so we can ensure the activities of the bank meet the strategic objectives of our economy and what we seek to achieve.

I note from the Minister's speech that it is the objective of the Government that the contribution of €25 million will be recognised as part of Ireland's overseas development aid requirement, which is 0.7% of GNP, and while this issue has not been finally determined, it is likely it will meet the test to form part of the contribution. It is fitting and appropriate this would be the case given the nature of the activity in which the bank will be involved, for example, in the areas of energy and developing better infrastructure, including transport infrastructure. Looking at various projects that have already been approved by the bank, it is fair to say those investments will help to develop the Asian economy and, in turn, will help to create significant opportunities for Irish firms.

The trade missions to Asia in recent years, which have been led by various Ministers and heavily supported by Enterprise Ireland and other State agencies, have been successful. There is an economic dividend for the European Union and particularly for Ireland in ensuring the Asian economy continues to be developed and that infrastructure bottlenecks there are addressed. Irish firms will not just develop export opportunities but will also directly provide services as part of projects which will be funded by the Asian Infrastructure Investment Bank.

The Asian Infrastructure Investment Bank is a very new bank. I have to say I did not know a whole lot about it until I started researching it in anticipation of the debate today. China will be the most significant player, along with India and other countries in Asia. It is operated on a multilateral basis. I note and welcome the level of co-operation that exists between the new bank and other international institutions such as the IMF, the World Bank, the European Investment Bank and the Asian Development Bank. The fact Ireland has a vice president of the European Investment Bank in the form of Andrew McDowell presents an excellent opportunity for Ireland to develop stronger relations through this channel with this new Asian Infrastructure Investment Bank.

The Bill itself is quite short and, in effect, what we are doing is providing for the approval of the articles of agreement of the new bank and consent for the payments to be made. We should ensure there is a proper reporting mechanism and that Ireland's involvement in the bank is accounted for, and I suggest, for example, this be a standing item on the agenda in the finance committee. At least every year we should be given an update on the work of this bank and Ireland's role in this regard, and we should seek to measure in so far as we can what the economic benefits are to Ireland as a result of being directly involved in and being a member of the bank. I will leave my opening remarks at that. I welcome the Bill. We look forward to Committee, Report and Final Stages of the Bill. We support the Bill and we look forward to the remainder of the debate.

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