Dáil debates

Wednesday, 1 April 2009

Ceisteanna — Questions

Official Engagements.

10:30 am

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 1: To ask the Taoiseach if the arrangements for his proposed visit to Washington DC in March 2009 have been finalised; and if he will make a statement on the matter. [8758/09]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 2: To ask the Taoiseach if he has received an invitation to the White House during his forthcoming visit to Washington DC; and if he will make a statement on the matter. [8759/09]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 3: To ask the Taoiseach if the itinerary for his visit to the United States around the St. Patrick's Day 2009 period has been finalised; and if he will make a statement on the matter. [9523/09]

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 4: To ask the Taoiseach the arrangements for his visit to Washington DC; and if he will make a statement on the matter. [9855/09]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 5: To ask the Taoiseach if he will report on his recent visit to the United States; and if he will make a statement on the matter. [10602/09]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 6: To ask the Taoiseach if he will report on his recent meeting with US President Obama in Washington DC; and if he will make a statement on the matter. [10603/09]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 7: To ask the Taoiseach if he convened a meeting of the Irish America Economic Advisory Board during his recent visit to the United States; and if he will make a statement on the matter. [10604/09]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 8: To ask the Taoiseach if he will make a statement on the outcome of his visit to the United States during the St. Patrick's Day 2009 period. [10881/09]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 9: To ask the Taoiseach if he will make a statement on his meeting with President Obama during his visit to the United States. [10882/09]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 10: To ask the Taoiseach if he will make a statement on his meetings with political leaders during his visit to the United States. [10883/09]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 11: To ask the Taoiseach if he will make a statement on his contacts with the Irish community during his visit to the United States. [10884/09]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 12: To ask the Taoiseach if he will report on his visit to Washington DC; and if he will make a statement on the matter. [11065/09]

11:00 am

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 1 to 12, inclusive, together.

I travelled to the United States on 14 March accompanied by the Minister for Foreign Affairs, Deputy Mícheál Martin.

On Sunday, 15 March, I launched a major review of Ireland-US relations entitled, Ireland and America: Challenges and Opportunities in a New Context. This review, prepared by the ambassador at my request, reflects the changing nature of the Irish-American relationship and sets out how we can re-energise and renew that relationship. It is the first significant review of diplomatic relations with the United States since the 1930s and includes a number of recommendations that will re-energise and ultimately transform how Ireland does her business in America.

On Monday, 16 March, I led a successful trade mission on behalf of Enterprise Ireland. This involved up to 100 exporters and contracts worth $130 million with their US customers in this year alone. I believe the value of those deals will ultimately reach more than $500 million in the coming years. These contracts demonstrate the faith US industry has in the capability and potential of Irish-owned companies.

Later that day, I attended the US-Ireland Council event hosted by Tourism Ireland where I placed a particular emphasis on promotion of Irish tourism in the valuable US market. I briefed business leaders on the Government's strategy to tackle the challenges of a contracting global economy and to encourage further investment into Ireland. Later that afternoon, I travelled to Washington to attend the annual American Ireland Fund dinner.

On the morning of St Patrick's Day, before I went to the White House, I met with the Friends of Ireland group led by Congressman Richie Neal. I briefed the group on the situation in Northern Ireland, the review of US Ireland relations, and immigration reform was also discussed.

At my bilateral meeting with President Obama at the White House, I updated the President on recent developments in Northern Ireland. I was heartened by the President's strong message of support for the peace process. He also made it clear that the United States will always stand with those who work for peace.

President Obama and I also discussed the global economic situation, the banking crisis and trade and investment between the US and Ireland as well as a range of international issues. Later, at the shamrock ceremony, I presented the President with the traditional gift of shamrock to symbolise the friendship and deep ties between Ireland and the United States. I also invited the President to visit Ireland and I hope he will be able to take up that invitation at some time during his term of office. President Obama also announced the appointment of Dan Rooney, a long and valued friend of Ireland, as US ambassador to Ireland.

Later that afternoon, I was honoured to attend lunch with President Obama and our friends on Capitol Hill hosted by Speaker Nancy Pelosi. Following lunch, I met with Senators Patrick Leahy and Chris Dodd before meeting the Ireland America Economic Advisory Board to discuss economic issues and how Ireland can position itself for future economic growth. At all of my meetings I emphasised that Ireland is taking every step to ensure support for the banking sector, that we are working hard to improve the position of the public finances, restore competitiveness and maintain and create as many jobs as possible.

Later that evening, I addressed a reception hosted by the ambassador in co-operation with Enterprise Ireland. I then went to the White House where the President and First Lady hosted a St. Patrick's Day reception and where I also met Vice President Biden. The visit demonstrated the enduring links between Ireland and the United States at so many levels; political, cultural, economic and community.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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This was an important visit by the Taoiseach, which I supported. In fairness to him, the reports were to the effect that he was not unduly phased when he started to read President Obama's speech and that he got over that little glitch without any problem. Fair play to him.

I welcome the appointment of Dan Rooney as ambassador to Ireland. I met Mr. Rooney on a number of occasions when I was Minister for trade and I am sure he will do a first-class job in terms of relations between the United States and Ireland. Does the Taoiseach believe the American Government will proceed with its comprehensive immigration legislation? There is division over what should be done. Should we proceed on a bilateral basis or push for a comprehensive immigration legislation package? It is a complex area. The Minister for Foreign Affairs spoke to the Secretary of State for 45 minutes and there has been some movement since the beginning of the Obama presidency.

The list produced following the Taoiseach's announcement of a review of US-Ireland relations is quite comprehensive. It indicates the intention to appoint new consuls to Atlanta and Houston. Will these appointments require acquisition of property?

The Taoiseach mentioned the strong partnership with the Irish-American community and the US authorities in caring for the forgotten Irish. I have visited these locations. Elderly Irish people who went over to work as navvies or in domestic service find themselves isolated, often in tied-rent in buildings surrounded by many different nationalities, making it difficult for the Irish community to care for them. What strengthening of that partnership does the Taoiseach see to give effective contact with those people? It is not all about money; from meeting some of these people, it is clear there is a real need for continued human contact with the Irish.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I discussed immigration reform with President Obama and he is open on the issue. It is a difficult domestic issue in the United States for many reasons and there are many caucuses apart from the Irish caucus that have an interest in it. Finding a comprehensive approach to immigration reform is the best way forward in terms of engaging the Administration and, most importantly, Congress, because Congress determines the laws in these matters as well as whatever initiatives emanate from the Obama Administration.

One of the issues that has emerged from the debate is the need for the American public to feel reassured about the safety of its borders. When there is public confidence on that issue, the question of dealing with those who have travelled to the United States illegally might be addressed in a more positive way than is possible at present. We have been making certain initiatives regarding short-term visas as a means of keeping the item on the agenda and also of finding a pragmatic way forward which might not sort out the question of illegal immigrants in the near term, because that must be dealt with more comprehensively, but at least it indicates that progress can be made on this issue generally. The strategic review we outlined provides ideas on which we will continue to work.

On opening additional consulates in the United States, other economic hubs have been built up since the 1930s when we first established our physical locations in the country. The southern United States offer obvious opportunities and Atlanta and Houston would be regarded as places where we should have a consular presence. Atlanta is the location of the headquarters of Coca Cola which made a €300 million investment in Wexford recently. That is a first choice and can be developed from within existing resources.

When I was Minister for Foreign Affairs, I instigated a review of the emigration question. A full report was published under the chairmanship of Paddy O'Hanlon that recommended the establishment of an unit for the Irish abroad, bringing various departmental activities within the scope of the Department of Foreign Affairs and that has proved to be a great success. It is a small unit and it is very well run and administered. All of the welfare groups have seen a sea change in terms of the cohesion and coherence of the approach to the issues they deal with in these communities, particularly in Britain, the United States and Australia. That unit has proven its worth.

There has been in the past the ability to provide increased resources to many of these welfare organisations. I met them myself. During my trip to New York in July 2008, I attended a function attended by many elderly people who have been in the United States for many years. Some of them still live in the neighbourhoods that were traditionally Irish in the past but are no longer as strongly connected to Ireland. Many of them maintain good connections through their own initiatives, activities and involvement in Irish organisations down the years. Welfare organisations also have effective outreach initiatives that ensure people who are now living alone or who do not have the same family support are assisted and helped in every possible way, including through social networks. This is all important work and has less to do with resources than with the fact that there are many highly motivated people who are committed to the Irish community in America and who have developed and maintained these organisations to great effect.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Did the Taoiseach discuss with President Obama the continuation of the post of Special Envoy to Northern Ireland? There was a rumour that it might not continue, although I hope that is not the case. We in this country greatly value the continuing interest of successive United States Governments in our problems.

While we know this country is not regarded as a tax haven, the definition used by the General Audit Office in the USA is very loose and equates Ireland with countries such as Liechtenstein and other locations that are clearly tax havens. This is not the case for Ireland and it is important we make that crystal clear. Those responsible for inward investment from the United States should not be under any illusions on that point. For general consumption we should deal with the matter.

The last time I was in New York, I met a group of young Irish-American businessmen and women. Many of them had never been to Ireland. As a result of their genuine interest in building relations between their generation and Ireland, it would be worthwhile to put in place a programme for young business people who would be brought here from the States to see the developments we are making in software, intellectual property and our capacity for research and future innovation, and vice versa. As the Taoiseach is aware, at least 80,000 people work in Irish-owned firms in the United States. A reciprocal business programme on a six-month or yearly basis would be beneficial.

Most Irish university presidents must raise money in the States from philanthropic sources and so on. The detail given by the Taoiseach stated there would be a co-ordination of activities of Irish universities and higher education institutes. This is the key to the future. The world will change utterly again in the next 20 years with developments in the Internet, genetics and robotics. What sort of co-ordination of activities is envisaged?

The detail also stated there will be extended secondary school linkages and development of curriculum materials between the US and Ireland. What is meant by co-ordinated links between schools in the States and Ireland? Will a programme be set up whereby Irish secondary schools can travel to the States for classes and vice versa? Will the Taoiseach elaborate on the development of curriculum materials?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The US President confirmed a US envoy to Ireland would be appointed. I welcomed this as an envoy has a role to play in the bedding down of the peace process. Most important, the contribution of the United States in emphasising the economic dividend of the peace process has been highly effective. It has leveraged much goodwill and investment projects not only in Northern Ireland but the island of Ireland.

The tax haven issue arose in some documentation relating to audits that emanated from one of the congressional offices. It has been taken off the list since our diplomats in the United States brought it to attention. There is no indication or question of the US President or others regarding Ireland as a tax haven. They understand we have double taxation treaties and meet all the relevant transparency criteria.

Tax deferrals are more complex issues. The challenge is to strike the right balance between supporting domestic employment and staying outward looking in ensuring US companies are in a position to invest in countries such as Ireland and maintain competitiveness overseas. I made the strong point to the US President that every $1 invested by US companies in Ireland brought a return investment of $3.50 to the US. By internationalising their business, they become more competitive.

Concerning Deputy Gilmore's earlier question on Leaders' Question on job losses, this is about competitiveness and being able to provide goods and services for which there is international demand. A world economic downturn for the first time in 25 years and the worst in 80 years will have an effect on small open economies to a greater extent than others. The reduction of the growth in the Irish economy is mirrored by the experience of Singapore, Taiwan and South Korea, the ASEAN tiger economies, which have also been affected by the international economic downturn. It is not surprising given the small domestic markets that are available to absorb what we produce and our reliance on exports as a large percentage of we produce.

The strategic document sets out for the next 20 years, at least, what the relationship with America should mean. It highlights the approach needed rather than allowing some people to characterise it as being based on sentimentality or the vacuous suggestion our relationship with the US should be reduced to the presentation of a bowl of shamrock on St. Patrick's Day. Those who characterise it in that way are usually expressing their own latent anti-Americanism. The relationship with the US is far more than that and has brought much progress to this country. It is bilateral and has been of mutual benefit. Ireland now has a developed economy rather than a developing one. Irish industry has become internationalised in the United States, as elsewhere, providing direct jobs which are commensurate to the number of jobs provided by US companies in Ireland. That is not well known in Ireland, let alone in the United States. It is an important point that needs to be made rather than characterising the relationship as Ireland being less than an equal, where it must go cap in hand to the United States. That is not the way either we or the US sees the relationship. There are still a few in this country who like to see it that way as it suits their dated thinking.

The question is how we can engage with America in a way that will bring mutual benefit. It is in the same way we want to engage in Northern Ireland with those of a different tradition to bring mutual benefit. The way is through the various recommendations outlined in the ambassador's excellent and comprehensive report. It is not an operational programme; there are ideas, such as contacts between education systems and schools, that need to be developed. Through Science Foundation Ireland and the university sector, genuine efforts are already being made to bring research talent from the United States to work with Irish science teams in developing the goods and services of the future which can be commercialised for the jobs of the future.

The undertaking of the strategic review was timely. It was the first initiative I took when I became Taoiseach and visited the United States last July. I am grateful for the work on the document by the ambassador and his team. It involved wide consultations with an engaged Irish-American community which appreciated the initiative and has seen much good come from it. It sets the scene for developing the relationship in a substantive way in the years ahead.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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I acknowledge the Taoiseach's visit to the United States and his meetings with US President, Mr. Obama, were a diplomatic success. I compliment the Taoiseach and all concerned on this and I welcome the proposals, arising from the visit, for the strengthening and deepening of relations between Ireland the United States.

I understand the Taoiseach gave an undertaking to the US President that he would convey to the recent European Union summit Mr. Obama's wish that Europe should match the stimulus package of the United States to restimulate the global economy. One newspaper, however, reported the outcome of the summit was the rejection of the Obama proposals. Did the Taoiseach convey President Obama's views to the summit? What is his reaction to the fact that it appears the American package got short shrift in Brussels?

I welcome that President Obama was reported as saying he does not consider Ireland to be a tax haven. Is the Taoiseach satisfied, arising from his discussions with the US President, that no jobs in Ireland will be at risk as a result of any tax changes which may be made by the US Administration?

Concerning the proposed new visa arrangements and the position of the undocumented Irish in the United States, prior to his visit the Taoiseach spoke about a reciprocal visa arrangement similar to that which applies between Australia and the United States. Has any progress been made on that or will we see any progress on that idea?

Finally, in the course of an interview with CNN, the Taoiseach is reported to have said that he would welcome or be willing to accept a number of released Guantanamo detainees to Ireland. That is at variance with what the Department of Justice, Equality and Law Reform has been saying up to now. Will the Taoiseach confirm to the House that Ireland will be accepting detainees from Guantanamo and can he give an indication as to the numbers he has in mind?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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My apologies for being at variance with the Department of Justice, Equality and Law Reform. That is unforgivable.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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I would not say that was the first time the Taoiseach was at variance with the Department of Justice, Equality and Law Reform. He should wear it as a badge of honour.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Taoiseach should do it more often.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Wolf Blitzer was the gentleman's name in CNN. The official position is that the EU is currently taking a common position on this matter and is engaging with the United States on the Guantanamo issue. All countries have adopted a common position. When asked a straight question, I made the point, which I stand over, that Ireland will not be found wanting in terms of making some contribution toward resolving this question. Given that we were one of the first governments to call for its closure we should perhaps be able to come up with some way of contributing to the consequences of its closure and to do so in a way that can be done.

I recall that in the past when I was Minister for Foreign Affairs we took into Ireland some Palestinians who had been involved in a stand-off with the Israelis. A siege had taken place some years ago and part of the way to resolve it was for those who were calling for it to end to take some of those people out of where they were to Ireland. We did that. The same principle should apply in this case. The detail of that will have to be worked out but if a request comes from a friend to assist it will be considered. If one welcomes the initiative taken by the Obama Administration, as I do — and I know Deputy Gilmore does — that Guantanamo should be closed, then we need to show that we will assist in that effort. That is totally consonant with our values and also with the friendship we enjoy with the United States.

On the question of a tax haven, it is very early days in terms of the tax deferral issue. Deputy Gilmore will be aware that many things have been said, as there always are during election campaigns, and one has to await the settling in of an administration to find out precisely what the intention may be or what may be the legislative intention of Congress in that area. One of the first points President Obama made in my conversation with him was important. He spoke about the recognition that all of us need to stay open to avoid undue protectionism. In other words, the worst response to the present world recession is for everybody to turn in on themselves and not to be committed to more open trade between each other. That was an important indication to me that philosophically he is very much of the view that America and American industry has a global presence.

By the same token, he is very strongly of the view that there seems to be some instances where in respect of areas of the world that are not involved in the international tax treaties to which we subscribe, the system of nameplating, as they say, where a lot of companies are situated in various parts of the world for financial purposes who do not have a substantive presence there but who are using it as a means of availing of the benign tax environment that is located in those places. He clearly feels that is something he as President, and Congress, need to address. That is an understandable domestic objective from his point of view.

That is not to say President Obama is inimical to American investment in Ireland. They are two totally separate and different issues, although one is often mixed up with the other. While I cannot give any commitments as to where all that will end up, I am satisfied, based on my discussions, that President Obama's remarks are not targeted at American industry in Ireland. He has other people in his sights and we are not top of his agenda in that respect. I was very pleased to hear that, and to hear from him that wider philosophical view that he believes America needs to be engaged with the world not only in political and diplomatic terms but also in economic terms and that it is not a question of an America first policy, simpliciter, it is a question of finding a balance, which is understandable from his perspective given the very serious economic challenges he faces and the employment issues he has to contend with as well.

I did not talk to my colleagues at a formal session but I mentioned my visit informally. The characterisation of what Deputy Gilmore said arose from what Larry Summers had to say in interviews a week or so before that. What was being emphasised by European leaders is that we have in the European model this question of economic stabilisers so that when one considers what a stimulus is, the stimulus in Europe includes not just a direct fiscal stimulus into the economic activity of the economy but also the fact that when people lose their jobs there are social security nets and income supports. These have the effect of helping to stabilise people's move to joblessness and then to return to work through training, etc. There are also various social supports and other retraining models that provide income support for people out of work.

Such social supports are not similar in the United States and therefore when one considers the full impact of the stimulus package, President Barroso would make the point that the impact of the European package is of the order of 3.3% GNP into the European economy this year. That compares favourably with stimulus packages in other parts of the world, including the United States. It is a question of a discussion taking place between Europe and the United States as to the impact of the measures each respective administration is making. I hope and believe the G20 meeting this week will indicate that there is not the same level of discord as perhaps is being suggested between both regional blocs.

The other point Deputy Gilmore raised related to the visa programme with Australia. We are trying to develop the Ireland-US bilateral visa arrangements with a new reciprocal and renewable two-year working visa arrangement. There is not a reciprocation arrangement in the Australian set-up. We believe it is preferable to have such a system so that there is a benefit to the citizens of the United States in the same way as there is for our citizens. For that reason we believe this has its attractions and that it will gain support in Congress.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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I have one brief additional supplementary question. Will the proposed new consulates in Atlanta and Texas be hit by the recruitment embargo announced by the Government since his visit to the United States?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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That will have to be taken into account. It was not intended that they would be set up immediately. The consulate in Atlanta will be set up in the first instance and Houston in due course. It is hoped that this can be done from within existing resources. We have to take cognisance of the financial situation also, but I believe those consulates will emerge in time as the priorities suggest.

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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I wish to associate myself with the complimentary comments made by Deputy Gilmore with regard to the Taoiseach's visit to the United States.

Undocumented Irish people from every county in the country are virtually in limbo in the United States. Some people who went there during the previous recession in the 1980s have not been back here since. Since many of those young people left, they have suffered family bereavements but have been unable to return home because of the fear of not being able to return to the United States. Many of them have, effectively, settled in the United States. Can anything practical be done for these people, particularly those who have been bereaved during this period or those who have been there since the 1980s?

With regard to the Middle East, did the Taoiseach have any discussions with President Barack Obama with regard to the disgust and abhorrence felt by the Irish people during the siege of Gaza, the continuing situation there and the actions carried out before the Israeli election when over 1,300 people were killed in Gaza, many of them by phosphorus bombs that are, apparently, illegal for use against civilian targets? If he did, what was President Obama's response.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I thank the Deputy for his comments. The question of the undocumented Irish is a very difficult and long-standing issue. There are real hardships and human consequences to the inability, thus far, to regularise people so that they can come and go. People miss funerals of family members and are not in a position to attend other functions one would hope they could attend. This tells a tale of upset, worry, concern and anxiety for people on both sides, both the families at home and those located in the United States who are not in a position to return because of their status. We have all attended county association meetings at which part of the night has been taken up as almost a constituency clinic to discuss the issue with people with this problem who want to know if there is any way the situation can be resolved. We are all aware of many genuine and heart-rending stories and know the families and individuals concerned. I accept what the Deputy has to say in this regard and the impact it has on people.

For that reason, we must continue to put the case patiently in the corridors of power within the United States at all levels. However, we must do so in a way that is respectful of the fact that this is also a major issue for Americans. There is no lack of goodwill towards the Irish people and there will always be a recognition that they have contributed positively. Those who have gone to the United States have done well and what they have achieved through their progress, efforts, hard work and sense of community down the years reflects well on their country and families. However, in the current circumstances, it is important we understand we cannot make demands in this regard. We need to empathise with and understand the American point of view in terms of the problems immigration causes generally in the United States and the tensions that can arise because of that, particularly in the context of significant unemployment in many parts of the States affected by the recession.

There is, however, an enlightened majority of people — President Obama is one of these — who understand the positive contribution immigrants have made to the narrative of the United States. They have made it the country it is, and the Irish are a particularly well respected ethnic group in that context. Therefore, we on both sides of this isle must work with the Administration and Congress to find a solution that is acceptable to them, to Americans and to those of us who would like to see our diaspora regularised as quickly as possible. There is a way forward and a solution can be found if we continue to adopt the right approach and are conscious of their difficulties. If we proceed on those lines, there are prospects. There are no guarantees the situation can be resolved, but it is a serious domestic issue within US politics. There are many people of goodwill on both sides in positions of power who are interested in trying to devise a way forward but they have not been successful to date.

With regard to the Middle East, the issue did not arise specifically in my discussions with President Obama in the limited time we had, although the questions of Afghanistan and climate change did. The Minister for Foreign Affairs, Deputy Micheál Martin, had a long discussion with Secretary of State Clinton on those matters on the previous day. Perhaps the Deputy should put a question to him to elicit her official response. One point President Obama made in my meeting with him was that he characterised Ireland as a beneficial presence on the world stage. He recalled a story told by George Mitchell, that when talking to Palestinians he referred to progress on Northern Ireland, notwithstanding the 800 year duration of the problem, only to elicit the response that by contrast with the Middle East that was such a recent conflict.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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I have three brief questions for the Taoiseach. On tax haven legislation, is it not the case that the legislation currently being proposed goes far beyond the issue of tax havens and that US companies operating legitimately outside of the United States could be taxed on the double? For example, the Bank of America has 14 subsidiaries here in Ireland. What we will do is handicap US businesses investing in countries such as Ireland. Will the Taoiseach outline how we can progress this issue? It is of crucial importance to our part of the country where many US multinational companies are based.

The Taoiseach mentioned the bilateral deal with Australia and spoke about putting in a provision regarding a reciprocal arrangement for visas. How feasible is the proposal put forward by the Taoiseach? Also, have we considered the situation regarding US nationals based in Ireland who may have similar problems regarding residency? Could we use that mechanism to put forward proposals regarding the Irish in the United States?

My final question relates to Guantanamo and the commitment given by the Taoiseach to the US authorities in his interview. The Taoiseach made the point that if people were to come to Ireland under that scheme, we would keep a very close eye on them here. We cannot do that. Many immigrants here currently have disappeared from the system while being processed. How then will we have the resources to monitor additional people coming into the country? I note the Minister for Agriculture, Fisheries and Food is beside the Taoiseach. I understand President Obama raised the issue of Afghanistan and, perhaps, the role Ireland could play in that regard. I understand the Taoiseach made the suggestion that because of our strong background in agriculture, we might be able to provide assistance in Afghanistan in the growing of crops other than poppies. Will the Taoiseach elaborate on that point?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I welcome the Taoiseach's comments on Guantanamo, notwithstanding the problems raised by Deputy Naughten. However, in the context of those comments, did the Taoiseach raise the issue of extraordinary rendition? There has been a link between Irish airports and, certainly, aircraft that have been used for extraordinary rendition in the past. Has the Taoiseach received assurances from the US authorities that the policy of extraordinary rendition is over in the context of the new approach towards detainees and detention generally and the so-called war on terrorism adopted by the United States?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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No, I did not seek those assurances because I have accepted those I have received to date. I would not regard it as very diplomatic to question, at the first meeting with a new US President, the assurances I have received. It would not be very sensible or judicious. Given that the US Administration is closing Guantanamo and that the question of rendition thereto arose internationally in the first place, it would not be right of me to raise the matter. There is no necessity for me to do so.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I would have believed the new US President would have welcomed the opportunity to clarify the issue.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The new President had already made his position clear. One way to make friends is not to question the assurances one has already received. It is not necessary to question them. There has been no evidence whatsoever of any rendition from this country and we have received assurances to that effect. There are many people who would like to suggest there is rendition but there is none.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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That is actually not true. I am not suggesting people have been transited through Shannon Airport but aircraft certainly have passed through it.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am sorry but I am not getting involved in an argument with the Deputy. I am answering the question he has raised and giving him my strong view on these matters. There is no equivocation by my Government on these matters. There is none on either the issue itself or the nature of the assurances I have received from a country that I regard as a friend of this country.

On Deputy Naughten's question on Afghanistan, President Obama noted our record on development and believed it offered a range of opportunities for co-operation. He indicated that a review of the Afghanistan issue by General Jones is under way. He cited crop substitution programmes, judicial reform and literacy campaigns as areas in which Ireland and other countries could have a positive input.

With regard to tax deferral, the issue is at a very early stage of legislative intent, given that there is to be legislation. Suggestions have changed regarding tax deferral and it must not have significant implications for us. President Obama said he was mindful of our interest in this issue and that the United States will not take action without consultation. He said he was aware that these are complex issues with an impact on global financial flows. There was strong sentiment in the United States that the tax system should not encourage an exodus of jobs. That was a very fair point on President Obama's part. He stated the challenge was to strike the right balance between supporting domestic employment and staying outward looking and that it is a question of ensuring US companies are in a position to invest in countries such as Ireland and maintain competitiveness overseas. He also made the point that this is not an issue to be resolved over night. Over time, it might be possible to develop a package that involves issues for domestic economic policy in the United States. President Obama is mindful of the possible impact on Ireland and he will act with caution and will be ready to discuss any potential unintended consequences.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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Was there bilateral discussion on the impact on US citizens in Ireland?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Yes. We have set out in our strategic review ways and means by which, short of granting citizenship entitlement, we could recognise people's Irish ancestry through certification of various kinds. The strategic review outlines ways and means by which we can develop networks beyond the Irish-American community. For Ireland, the Irish-American community should be used as a gateway to the wider American community.

Two great developments emerged from the peace process with regard to our relationship with the United States. First, thankfully, there is now highly informed public opinion on what contemporary, modern Ireland is about, on our objectives, on the way in which we do our business and on the way in which we intend to proceed down the democratic path. That is now accepted. Thankfully, we no longer have any significant element of our diaspora that is at variance with official Government policy on these matters. The circumstances that obtained heretofore comprised a great constraint on the development of our relationship with the diaspora and on how we could use the diaspora as a resource in comparison to how we can use it now. This is a highly significant change not only in the United States, but also in Britain, Australia and other parts of the world. Since people are highly informed and since our opinion does not differ from that of significant parts of the diaspora, we are in a position to use that diaspora far more positively than was the case in the past.

Second, the diaspora can provide a gateway to the wider American community. I do not refer simply to the benefits of developing the ethnic connection but also to the fact that the Irish-Americans, who are Americans themselves, can now become spokespersons for the modern Ireland in which we live today in terms of investment, trade, business and social networks and a range of areas. We have seen other ethnic groups in the United States develop particularly well and, therefore, it is not at all a question of resources but of ensuring that the links between Ireland and its diaspora are substantive, meaningful, relevant and mutually beneficial. That gives substance to the relationship. As I stated, those who try to reduce it to a sentimental one are way off the mark.