Billy Timmins (Wicklow, Fine Gael)
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Question 84: To ask the Minister for Foreign Affairs the impact the Lisbon treaty, if ratified, will have on Ireland's foreign direct investment policy; and if he will make a statement on the matter. [10524/08]

Dermot Ahern (Louth, Fianna Fail)
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The reform treaty provides for a more effective European Union across a range of areas and will allow the Union to continue to develop positively, as it has throughout our 35-year membership. A more effective Union will continue to make Ireland an attractive place for foreign direct investment. All member states remain free to determine their own policies in these areas subject to EU rules on state aid and competition and other areas of EU competence. The reform treaty does not change this position. Article 2.157 of the treaty makes clear the Union's commitment to the progressive abolition of restrictions on trade and foreign direct investment. Accordingly, nothing in the treaty poses a threat either to Ireland's foreign direct investment policy or broader national enterprise policy.

The Common Commercial Policy, the European Union's international trade policy, is one of five areas of exclusive Union competence. In trade negotiations the Commission negotiates on behalf of the Union, subject to a mandate given it by the member states. In the reform treaty the provisions dealing with the Common Commercial Policy include a reference to foreign direct investment. This reflects the growing importance of outward investment from Europe in a globalised world. For example, existing trade agreements contain rules that apply to investment by EU companies in other countries and vice versa. Foreign direct investment is, therefore, already an aspect of the European Union's commercial policy. Mentioning foreign direct investment in the reform treaty merely adds clarification, recognising the Union's existing involvement in the area.

In the reform treaty qualified majority voting is the standard decision-making mechanism for the Common Commercial Policy. However, there are some important qualifications. The Council is to act unanimously in the areas of trade in services, intellectual property and foreign direct investment where the negotiations cover issues for which unanimity is required internally. An important example would be the area of taxation. Under the reform treaty, Ireland continues to have the right to determine how its fiscal policy is developed and applied. For us, this is a key aspect of enterprise policy for both the indigenous and foreign direct investment sectors.

Billy Timmins (Wicklow, Fine Gael)
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I agree with the Minister. I have read my copy of the treaty and do not see anything in it that would have a negative impact on the ability of Ireland to make decisions in the area of foreign direct investment. However, the claim has been made that it would have a negative impact, similar to the claim that Article 48 renders the treaty self-amending.

Does the Minister agree that there is a danger that if much misinformation is released about the treaty, the general public will become confused? Does he envisage a role for the Referendum Commission in this regard? I have not yet seen its terms of reference — perhaps they have not been drawn up — but will there be a possibility for it to intervene if inaccurate claims are made? A grave disservice is done to the general public by the release of misinformation by either side. What I have seen thus far is that those opposed to the treaty are incrementally putting out misinformation and those who are for the treaty are refuting it, with the result that there is a failure to provide real information on the treaty. Does the Minister have any idea why the "No" side is putting out misinformation? Does he believe those involved are doing this on an incremental basis? Does he foresee any role for the Referendum Commission to intercede or give a view on the accuracy or otherwise of information released?

Dermot Ahern (Louth, Fianna Fail)
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I agree with the Deputy that this is yet another kite flown by certain people to try to suggest there is something in the treaty which would affect our ability to entice foreign direct investment into Ireland and the European Union. In fact, the exact opposite is the case. The provisions of the treaty are all about the ability of European companies to do business with third countries and ensuring barriers put up by third countries in dealing with European companies are reduced. That is what the reference to foreign direct investment in the treaty is all about. To say otherwise is incorrect. IBEC, the Dublin Chamber of Commerce, the American Chamber of Commerce Ireland and a number of other business groups have called for support for the treaty.

With regard to the role of the Referendum Commission, I expect it will respond to and deal with issues in an objective way in order that there is no fear of misinformation. It will give independent, objective advice on some of the kites flown during the campaign in order that the public can make up its own mind. We should consider, for example, the benefits that have accrued to Irish business and the economy through our involvement with the Single European Act. We would not have had that Act without qualified majority voting. The qualified majority system is sometimes portrayed as being bad but we would not have had a single market without it. Ireland has gained hugely from our involvement in the Single Market. Our previous economic development has been replicated in the period since we joined.

Billy Timmins (Wicklow, Fine Gael)
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I realise that the Estimates are dealt with by the Select Committee on Foreign Affairs but could the Minister enlighten me on the sum of €800,000 for matters to be dealt with by his Department? What is this money actually for? Am I correct in stating €5 million is being allocated to the Referendum Commission and €800,000 to the Department?

Dermot Ahern (Louth, Fianna Fail)
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We have set up a website and published in February an easy to read A4 size pamphlet. We have also issued a 22-page plain guide to the treaty, probably one of the best documents available. I suggest everybody receive a copy. Members of the Oireachtas have already received their own copy and we will be supplying copies to them in bulk in the next few days. It is available in English and Irish and also in Braille and audiovisual versions which we were asked to provide by a number of people who contacted the Department. We will be sending the guide to every household in the country. The sum of €800,000 mentioned by the Deputy is for the work that has been done to date by the Government in an objective way. The Referendum Commission is independent and can spend the €5 million allocated to it as it wishes.