Dáil debates

Thursday, 12 February 2009

Priority Questions

Bilateral Relations.

3:00 pm

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Question 1: To ask the Minister for Foreign Affairs the recent discussions he has had with the US Administration with respect to its recovery and re-investment plan; and the impact it is expected to have here. [5339/09]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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Those still having conversations do not have to go home but, as I said before, they cannot stay here.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Ireland and the United States enjoy close political, economic and cultural relations.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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There can be no side conversations. I have said that on numerous occasions as well.

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Deputy Gormley.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Successive Presidents and their Administrations and Ireland's many friends on Capitol Hill from both sides of the aisle have made an enormous contribution to bringing peace and economic prosperity to this island. The Government attaches the highest importance to strengthening the unique relationship between the two countries.

I welcome the commitment of the Obama Administration to overcoming the manifold challenges posed by the current economic climate worldwide. President Obama has made it clear that the recovery and re-investment plan is his top priority. The legislation, as currently developing, is focused on stimulating the domestic US economy, an undertaking which is central to restoring wider confidence in the US and globally, and as such is of particular significance for an open trading economy such as Ireland. The legislation is currently before the US Congress, with the Senate and House versions shortly to be brought to convergence. The Government will continue to follow its progress and assess its possible implications for this country.

The aim of the Government is to promote consolidation and growth of the economic partnership between the United States and Ireland. This partnership has been enormously valuable in the development of the significant trade and investment ties between our two countries. It is worth noting that the US was Ireland's second largest merchandise trading partner in 2007, with bilateral trade valued at $31.5 billion. Trade in services between Ireland and the US was worth $36.9 billion in 2006. These ties are mutually beneficial: just as US companies employ 95,000 people in Ireland, Irish companies in the US now employ more than 80,000 people. A strong US economy serves all our interests. The need to constantly update and renew these links will be a central theme of our contacts with members of the Administration and other key figures in the United States in the period ahead.

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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I thank the Minister for his reply. Did the Minister have any concerns about reports that the new President would encourage companies based abroad to pay tax at home? This might have had an impact on foreign direct investment here. Did the Irish ambassador have any role in lobbying the Administration and emphasising the importance of foreign direct investment to Ireland? Perhaps the Minister covered this in his reply, but I cannot recall. Did he use the office of the EU ambassador, John Bruton, who I understand did make representations, or at least public statements, on this issue?

While on the subject of Irish-American relations I will also ask if the Minister or the Taoiseach is going to Washington for St. Patrick's Day. Have they received invitations? Does the Minister see an opportunity in the context of the US recovery plan to raise the issue of the undocumented Irish in the US? There are several million undocumented people in the USA, including several thousand Irish people. Has the Minister raised this with the new Administration?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The question relates to the recovery and re-investment plan, which is fundamentally about the domestic US economy. Of course, if the American economy can effect a recovery, Ireland, as an open, exporting economy, stands to benefit. As I said in my reply, the US is extremely important to Ireland in terms of exports and investment from multinational companies. The broader issues raised by the Deputy, such as the possibility of taxation incentives for repatriation of profits, do not materialise in the context of this plan. Some amendments were suggested but they were not accepted.

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Did we have an opportunity to lobby about the amendments that were not taken up?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Our ambassador is lobbying in Washington and is in touch with his contacts on Capitol Hill. With the greatest of respect, it is not for us to tell President Obama and his Administration about the fine-tuning of their economic recovery plan, which is a matter for the domestic political agenda.

Photo of John DeasyJohn Deasy (Waterford, Fine Gael)
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Every other country does it.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The ambassador and the IDA are vigilantly monitoring the issues that concern us, such as the key issue of international tax policy. This was flagged in the platform of the President during the election campaign. The indications are that nothing will be done straight away, but it may surface in due course. Of course we will be lobbying, as we did before, to protect Irish interests as far as we can.

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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In the Minister's response he spoke about the special relationship between Ireland and the USA. It is important to note there was an attempt to hit at American companies based in Ireland. The Minister says the amendments in this regard did not appear, but my understanding is that there may be attempts to reintroduce them. The Minister should take a proactive role in ensuring that we maintain our position. While I agree that we should not interfere with how America is run and how it reforms its economy, I am sure the Minister is inundated with representations from other countries when we are passing legislation that may have an impact on them.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Not really. Of course, we will work as effectively as possible on our issues. Sometimes it is not through shouting and roaring from the rooftops that one goes about getting one's point across. There are obviously issues of interest to us on which we will be engaged with the American Administration. That will relate to their international tax policy.

Photo of Billy TimminsBilly Timmins (Wicklow, Fine Gael)
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Is the Minister going there for St. Patrick's Day?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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We will be dealing with St. Patrick's Day later.