Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

Question 96: To ask the Minister for Foreign Affairs the role he plays in securing foreign direct investment from the USA; and if he will make a statement on the matter. [38566/08]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

My Department works closely with the Department of Enterprise, Trade and Employment and the State agencies under its aegis, in promoting Ireland's economic interests overseas. As Minister for Foreign Affairs, I attach the highest priority to using our network of embassies to further the Government's economic objectives, including attracting inward foreign investment.

Our embassy in Washington and consulates in the United States work closely with the IDA in facilitating high level contacts and providing information on the extensive supports available to companies interested in investing in Ireland. The IDA and the Irish Consulate in New York share a premises in Ireland House with other State agencies, thereby ensuring close collaboration in their efforts to attract foreign direct investment.

Every opportunity is used, including high-level visits and bilateral meetings, to raise and advance Ireland's economic interests in the United States. In my recent visit I addressed business leaders at a luncheon in New York, where I met clients of IDA Ireland and Enterprise Ireland. I also met individual Irish companies which do business in the United States, and senior figures in the financial services sector.

In all my contacts, I underlined the benefits of investing and doing business in Ireland. I also drew attention to the increase in Irish investment in the United States and the development of the mutually beneficial economic relationship which this implies. My key message was that Ireland is, and remains, an attractive location for high-end, skill-intensive investment.

Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

The Minister will know that approximately 152,000 people are employed directly in foreign companies that invest here and that approximately 300,000 are indirectly so employed. Does he know what percentage of jobs created by foreign direct investment comes from the United States? He may not have the exact figure today but my understanding is that approximately 40% of all jobs created by foreign corporations are in US-based companies. Perhaps the Minister might let me have the figure later.

There is much euphoria in Ireland as a result of the American presidential election. Is the Minister concerned that the new US President may make a policy change as he has intimated, most particularly at the Democratic Convention in Colorado? President-elect Obama stated that he may look at the concept of double-taxing companies that are based abroad. I have concerns that the new US Administration may seek to put an additional charge on companies that invest abroad and that this might have major implications for Ireland.

It is very important that the Minister give me his view and that he outline what steps, if any, he might take to try to ensure that this very important economic sector does not come under threat.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

American investment in Ireland is very significant and over 100,000 jobs have been created by American companies. The figures are available in the Department of Enterprise, Trade and Employment and can be supplied to the Deputy. The key point is that it has been a significant factor, not merely in terms of quantity of investment but in the types of industries that have come in such as life sciences, technologies or internationally traded services. The degree of expertise that has come with that and the mindsets acquired in how to organise human resources and more have been greatly beneficial to us.

As Minister, I work with the Department of Enterprise, Trade and Employment to continue to seek ways of encouraging that investment, consolidating existing investments and winning new investment.

Regarding President-elect Obama's position on taxation and the suggestion that the new administration may seek to disincentivise companies moving overseas in terms of deferral tax, subsidiaries and other means, we must take this step by step. We must also be aware that such a policy change would require legislative input and we would obviously engage in making our position known to Congress and to public representatives there.

The reason many multinationals go overseas is to win market share in big trading blocs. American multinationals come to Europe to win market share in Europe. They are in Asia to win market share in China and India. There is, therefore, an interdependency. The system is now a global one and is not that easily disassembled. There is a journey to go yet on this matter and we must be cautious about overreacting. We must certainly be mindful of the situation and will take steps to respond if necessary.

Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

I am satisfied that the Minister is mindful and am glad to know that he will put a block in the first hurdle of President Obama's new policies.

Former President Clinton also intimated a similar policy when he came to office in the early 1990s. Is the Minister familiar with the steps we took, if any, at the time, or how far such a policy evolved during that period?

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

The Minister will give a brief final reply.

Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

I cannot over-emphasise how important it is that we ensure our economic interest is protected. The Minister might also supply me with figures at a later time in respect of the investment that Irish companies might have in the United States. Perhaps he might also give a similar total figure for the EU.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

That is a good question for the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Mary Coughlan.

Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

I know it is probably a little bit outside the Minister's remit but he constantly informs me using his previous experience as Minister for Enterprise, Trade and Employment and therefore I believe the Leas-Cheann Comhairle will allow me the latitude.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I was very keen to get that figure when I was Minister for Enterprise, Trade and Employment in order to tell Enterprise Ireland to do some homework regarding how many jobs Irish companies create in the US. The figure now is approximately 80,000 jobs. It is by no means a one-way street. I had the unusual circumstance about a year and a half ago of a US Senator lobbying me to see if a particular company might locate in his jurisdiction. That was an unusual kind of event because it was normally the other way round.

The key point made by Deputy Timmins about lobbying——

Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

I wondered about the previous role——

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The core issue here will be what is in the fundamental interest of corporate America, of the multinationals and of the American economy. As I said earlier, it can be argued that if companies become global economic powers in their respective fields this is ultimately beneficial to the American economy. That is ultimately what will inform the policy response in the United States.