Eamon Ryan (Dublin South, Green Party)
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Question 74: To ask the Minister for Enterprise, Trade and Employment if he has carried out an analysis of the implications for capital investment here of the US corporate tax amnesty proposed in the American Jobs Creation Act which was signed into law by President Bush in the last week of October 2004. [28585/04]

Tony Killeen (Clare, Fianna Fail)
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On 22 October last President Bush signed into law the American Jobs Creation Act of 2004, which provides for the amnesty in question. It gives US multinationals a one-off chance to repatriate to the US accumulated profits held outside the US, by availing of a special effective corporate tax rate of 5.25%. Non-US profits repatriated to the US are normally taxed at between 35% and 40%. As the legislation has just been signed into law, full details of how it will be interpreted by the US Inland Revenue Service and implemented in practice are not yet available. I have been informed that IDA Ireland is not overly concerned that this one-off opportunity to repatriate accumulated profit in the US will affect the level of ongoing US investment in Ireland. Companies committed to existing spending plans can still avail of the US opportunity and proceed with existing investment openings. However, given the significance of US investment to Ireland, IDA Ireland will manage it over the coming months. As part of the process, IDA Ireland and Forfás will undertake a joint review of the legislation, the possible implications for Irish foreign direct investment and how it is structured.

Eamon Ryan (Dublin South, Green Party)
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Will the Minister make available to Members such a report and analysis, given that it is a very important issue for many Irish companies and others based here but held abroad? Is the Minister aware of the figures recently quoted in various media that in 2001 $26 billion in profits was made by American companies? Given those figures and since a large part will not have been repatriated because of the tax arrangements, we could be looking at a very significant, multi-billion, transfer of capital back from Irish funds and accounts to home ones. Is the Minister concerned in that regard about the implications, even though IDA Ireland has assured him that there are no immediate implications for investment policy?

Tony Killeen (Clare, Fianna Fail)
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The issue of whether the report will be published is for the Minister, Deputy Martin, and I will mention to him the Deputy's interest in that regard.

On the profits currently enjoyed by US companies in Ireland, it is not at all clear — and not likely — that much is reinvested in Ireland. The taxation regime undoubtedly makes it difficult for the profits to be repatriated to the US, but it is considered likely that a substantial proportion of the profits of US multinationals are invested elsewhere and not necessarily in Ireland. Nevertheless, IDA Ireland and Forfás will keep a very close watch on developments when the blue book has been completed at the end of 2004 and the implications become clear in early to mid-2005.

Eamon Ryan (Dublin South, Green Party)
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Is the Minister aware that, in tables showing repatriated and overseas profits, Ireland, a relatively small country on the world stage, is at the top, with far more significant overseas profits than any other industrialised country with which we might like to compare ourselves, including Germany and Britain?

Does he agree that, while the Taoiseach obviously cheered on the re-election of President George W. Bush as being, as he saw it, good for Irish business, we are exposed in a changing cultural climate in the United States and elsewhere in which overseas investment and the movement of jobs overseas will lead to pressure on the US Government, regardless of who is in power, to cut back on what are seen as tax havens? While we are not a tax haven in the sense of Bermuda, it will be seen, when the figures are shown that a country the size of Ireland can attract $26 billion a year in profits, that there will ultimately be great political pressure in the United States to amend the tax regime so that we are no longer able to use the advantage of which we have availed for many years. Is the Minister concerned that Ireland is now at the top of the league in that regard and might come under pressure to amend some of its tax haven rules?

Tony Killeen (Clare, Fianna Fail)
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I had reason to read all the statements made by the Taoiseach on the US election, both before and after the event, and I found no evidence that he was cheer-leading either candidate. On the contrary, he took an extremely neutral view. I take the Deputy's point on the importance of foreign direct investment in Ireland and that this country has been the biggest beneficiary of American direct investment. That is one reason for Forfás and IDA Ireland to review the impact of the US decision for investment. The view has been strongly expressed that this economy's success regarding foreign direct investment, particularly from the US, has been driven by factors other than those that will be affected by the decision, but it is very important strategically and economically for this country, and it will certainly be kept under review.

Séamus Pattison (Carlow-Kilkenny, Labour)
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The time for Priority Questions has expired. We must, therefore, take the other questions in ordinary time.