Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 1 to 4, inclusive, together.

As previously stated in the House, my Department has supported the international financial services industry in Ireland since the establishment of the IFSC in 1987, by providing a forum for the exchange of views and the co-ordination of effort through the mechanism of the IFSC clearing house group, supported by working groups in the areas of banking and treasury, funds, insurance, pensions and asset management.

Since its establishment in 1993, the clearing house group has been chaired by the Secretary General of my Department and its membership includes representatives of industry associations and prominent figures from the international financial services industry. There are also representatives from my Department, the Department of Finance, the Department of Enterprise, Trade and Innovation, the Central Bank, IDA Ireland, Enterprise Ireland, the Revenue Commissioners and the Stock Exchange.

The IFSC clearing house group identifies and considers issues of major concern to the long-term development of the international financial services industry in Ireland. These issues include the strategic development of new business areas and opportunities, and the progress of relevant legislation. From time to time, it identifies the need for responsibility to be assigned for overseeing and reporting to the Government on any appropriate initiatives in this area. The clearing house group does not deal with issues relating to individual enterprises or institutions, and does not supervise or oversee the industry; that is a matter for the Central Bank in the exercise of its independent functions.

The spread of membership of the IFSC clearing house group and the IFSC working groups enables discussion to take place in an open way, which reflects a wide range of experience and expertise, so that opportunities to develop sustainable business and employment in the various sectors of the international financial services industry can be achieved. It is estimated that the industry employs 25,000 directly in international financial services firms, while contributing €642 million in tax revenue to the Exchequer in 2009. This figure for tax revenue refers only to companies who were within the original IFSC tax regime; it does not cover international financial services companies that commenced trading after 2002.

In the context of its role in identifying development opportunities, the clearing house group has responded to the report of the high level group on green enterprise, which was published in November 2009 and identified the significant contribution that the development of the green economy can make to restoring Ireland's economy.

The green initiative concept relates to the repositioning of the IFSC to take advantage of growth in the global green economy and green finance sectors. It envisages a cluster of financial and support services for the domestic and international green-tech, renewable energy and carbon sectors. The report stated that potential exists to develop a green IFSC cluster and brand incorporating green investment vehicles, the administration of funds managed under green principles, and carbon trading and associated professional services.

A feasibility study into the launching of a green finance initiative within the IFSC was undertaken by a steering group operating under the aegis of the IFSC banking and treasury group. That study, which received support from various industry associations, professional firms, IDA Ireland and Enterprise Ireland, was presented to the IFSC clearing house group last May. Since then, considerable work has taken place regarding the development of more specific proposals to advance the initiative. It is hoped to finalise the proposals for consideration by Government in the near future.

Eamon Gilmore (Dún Laoghaire, Labour)
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I ask the Taoiseach specifically about the proposal for a green IFSC, which was one of the recommendations of the high level action group on green energy. That group reported one year ago. The Taoiseach tells us the feasibility study for the IFSC steering group was submitted in May 2010. It appears we have not heard anything further on it. A report in one newspaper in September indicated proposals were expected to go before Cabinet in the coming weeks. Have any proposals been put before the Government in respect of the green IFSC? The Minister for Communications, Energy and Natural Resources, Deputy Ryan, stated a project team would be established in 2010 to progress the proposal. Has that team been assembled?

Brian Cowen (Laois-Offaly, Fianna Fail)
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The memorandum has not yet been circulated. It is under further consideration at the moment. Various decisions must be taken by the Government on foot of the memorandum, which refer to various initiatives that await Government decisions. Then we will be to explain precisely how we want to proceed.

Eamon Gilmore (Dún Laoghaire, Labour)
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There appears to be absolute lethargy on this proposal.

Brian Cowen (Laois-Offaly, Fianna Fail)
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There is no lethargy.

Eamon Gilmore (Dún Laoghaire, Labour)
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There is.

Brian Cowen (Laois-Offaly, Fianna Fail)
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There is none, quite the contrary.

Eamon Gilmore (Dún Laoghaire, Labour)
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We have over 400,000 people out of work and a report from the high level action group was received one year ago. The Taoiseach still cannot tell us what is being done in practice, other than that the report of the feasibility study submitted in May is still floating around being considered. No decisions have been taken by the Government and no project team has been put in place. The Minister, Deputy Ryan, and the Taoiseach referred to the potential for 80,000 jobs in this area when it was announced. The Minister said 20,000 of those jobs could be created in the next five to ten years. We are now one year into it and not a single job has been created. The project that was to be established this year in order to progress it has not been established and the Government is still considering it. I do not get the sense there is urgency about developing this area, which has potential for jobs at a time of high employment. It is another case of official body reports and feasibility studies on the reports, which generates more paperwork. All we are getting is paperwork rather than action.

Brian Cowen (Laois-Offaly, Fianna Fail)
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Many jobs have been created in the green sector since the Government came into office. In some cases this has been stop start. There have been thousands of jobs in a range of areas. I remind Deputy Gilmore that this concept is about developing an IFSC cluster and brand, incorporating green investment vehicles, the administration of funds managed under green principles and carbon trading and associated professional services. Much advanced work has been done on this and the draft memorandum for Government will be brought forward. Further consideration is required on a number of issues. We are coming into budget time and some issues arise in this respect. We will deal with this memorandum for Government in due course. It has a priority and it is an area in which we can make some progress. As Deputy Gilmore knows from his party's procedures, once the memo is given to the Government and it makes its decision then we can publicise the issue.

Enda Kenny (Mayo, Fine Gael)
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In May 2007, when the Taoiseach was Minister for Finance, he established the financial legislation advisory forum. That was to consolidate and modernise legislation governing financial regulation. The objective was to provide expert advice, support and drafting assistance in the preparation of a Bill that was to streamline the legal framework for financial services regulation. The Bill was to be published within two years of the forum being established. When I asked the Taoiseach about this on the last occasion, he said it would be dealt with after the NAMA legislation. What is the status of the Bill now? Will it be brought forward or will it be published and brought into the House?

Brian Cowen (Laois-Offaly, Fianna Fail)
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It is being dealt with directly by the Department of Finance. A question to the Minister for Finance will give a precise update on it.

Enda Kenny (Mayo, Fine Gael)
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The Taoiseach's predecessor spoke at the launch of the Building on Success document and referred to the establishment of the centre for financial services skills before mid-2007. Does the Taoiseach have a report on the current status of the centre? The 2008 report said it would not require capital funding and have the full support of financial and academic experts. Is that the case? What is the status of it at the moment?

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am happy to provide information on that. The concept of the centre arose during the consideration given to the level of world-class skills, education and training required to sustain and further develop the IFSC in this country. The expert group on future skill needs was requested by the clearing house group to examine the needs of the entire international financial services industry and to put in place a strategy to ensure a continued and sustainable supply of skills to meet the needs of employers. It is clear from the study of research undertaken that no one academic institution alone had the capacity to cater for the highly desired skills set identified as being in short supply.

A sub-group on skills was then mandated by the clearing house group to bring forward immediate action to address the findings and the sub-group developed the proposal, referred to as the Fenero initiative, including the key elements of what now forms the Finuas networks programme. The model involved co-investment by the State and firms that have proven highly successful in the Skillnets training network programme since 1999 in a range of sectors and regions. Skillnets Limited was appointed by the then Minister for Enterprise, Trade and Employment as managing agents for Finuas in late November 2008. That project was launched in early 2009 in order to provide support for training in the IFSC sector. It operates on a matching funding model across four industry-led networks, with total public spending of €2 million over the two-year period 2009 to 2010 generally covering 25% to 40% the cost of training.

Investment in on-the-job training is a central plank of the development of a smart economy. A skilled workforce underpins both maintaining current employment levels in the IFSC and attracting inward investment in new employment. The Finuas project operates with the support of the majority funding of the industry and also enables greater training provision by firms, benefiting from the long-term employability of workers and Ireland's competitive position. The problem runs on very low overheads and has provided high-quality training and excellent value for money.

Enda Kenny (Mayo, Fine Gael)
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Some concern is being expressed that the Financial Regulator does not have sufficient staff to regulate and oversee the IFSC. Has the Taoiseach received a report on this? Is he happy the resources are being made available to the Financial Regulator so he can carry out his functions with regard to the IFSC? Given that the world is moving rapidly and the financial services industry has such potential, does the Government see other opportunities for further development in the IFSC to continue its outstanding progress over the years as a global centre for financial services? Does the Taoiseach have a view on the future growth prospects of the IFSC?

Brian Cowen (Laois-Offaly, Fianna Fail)
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The IFSC has proved resilient in the face of the international financial crisis that has enveloped us over the past number of years. It is a matter of regret and disappointment to us all that many governance issues arose in the retail banking sector. A number of parties were sceptical and had reservations about the IFSC at the time of its initiation. They suggested that its regulatory regime would not be adequate. It is of great regret to me to see the domestic banking system is where most of the problem has arisen in terms of governance and policy issues, as distinct from the IFSC companies themselves which have been very successful trading in an area of much financial sophistication and innovation. To its credit, the reputation of the IFSC has been broadly maintained. That speaks a lot about the professionalism of the people who work there and the skills they have.

On how the IFSC itself is working, we have set out in the smart economy programme a range of measures which are needed to reinvigorate the industry, including reform of the legislative framework for financial services in this country. The update on that can be provided by the Minister for Finance if a question is put to him. Another measure is support for a targeted up-skilling programme for the industry. There has been increased support for research, development and innovation activity. Extending double taxation agreements has been an important feature. There is a need for vigorous promotion of new opportunities in areas such as specialist leasing, pensions, technology development and sovereign wealth funds.

The IFSC itself has seen the need to market the IFSC and to promote the benefits of locating in Dublin in respect of this area of activity. In a collaborative venture with the major industry associations, the Institute of Bankers in Ireland and the Stock Exchange have agreed to market the IFSC externally. As chairman, Mr. John Bruton has a role in promoting Ireland as a location for international financial services. He is participating in outbound marketing and promotional efforts including trips to the Gulf, London, New York and Paris. He will work with the IDA and IFSC firms to attract inward investment and support business development opportunities. That is a valuable resource both for the IDA and individual firms in supporting their efforts to bring investment and employment to this country.

The primary responsibility for marketing this country as a location for international financial services resides with IDA Ireland. The agency has a dedicated international financial services team with marketing executives based both at home and in overseas offices. We are extremely satisfied with their commitment to and delivery of their mandate in respect of the international financial services sector. My ministerial colleague, Deputy Batt O'Keeffe, and I have had the pleasure of meeting many financial services investors accompanied by the IDA. We have always been impressed by their knowledge of the business and the dedication and professionalism they have demonstrated. The marketing of this sector for the country is an area of high achievement. There is a long list of international financial services firms operating in the IFSC and, significantly, in regional locations throughout the country. That is a welcome development. This country is now home to more than 200 companies employing approximately 25,000 people. The sector contains some of the leading names from the world of insurance and re-insurance, fund administration, aircraft leasing, banking, investment management and financial technology.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Estimates of between 20,000 and 25,000 jobs were suggested as the potential for job creation in a green IFSC. Does the Government have any particular measure on the real potential of a green IFSC in terms of job creation?

It was indicated earlier this year that a feasibility study would be carried out and depending on its outcome a launch was signalled for the months of March or April. Was a feasibility study carried out? If so, what were the findings of such a study? Will a launch take place that will give rise to the realisation of what is involved in this project? Will the Taoiseach give an indication of whether a committee or other structure has been established to oversee the proposals on a green IFSC under the aegis of his Department or any other? What, in practical terms, does he see as the potential yield in terms of inward investment from the putting in place of a green IFSC?

Brian Cowen (Laois-Offaly, Fianna Fail)
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I outlined in my primary reply the areas referred to by the green enterprise group that examined the matter. That has subsequently been dealt with by taking the idea forward to the prospect of an initiative being undertaken, identifying niche markets and what areas we could identify a competitive or competence advantage in terms of locating some of the financial services areas in the IFSC proper. The group identified the potential to develop a green IFSC cluster and brand incorporating green investment vehicles, the administration of funds managed under green principles and carbon trading and associated professional services. That work has been undertaken by the IFSC Banking and Treasury Group. Much work has been undertaken as a result of that. A memorandum for Government is at an advanced stage of preparation. I hope that decisions could be taken in this area and that a launch would take place some time in 2011 but I do not wish to anticipate Government consideration.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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It has been suggested that legislative changes and other provisions are required in order to facilitate this development. However, the head of the Bank of Ireland corporate banking group who is also chair of the IFSC, Mr. Padraig Rushe, indicated that he could not disclose what was required or being considered for allegedly sensitive or commercial reasons. Is legislation or other provisions being prepared for consideration and presentation in order to drive this project forward? If the changes are to be published, when does the Taoiseach intend to disclose the detail of what is intended? If, for instance, there is legislation, will the Taoiseach publish the heads of a Bill in order that we can have some idea of where the Government stands and what is intended?

Brian Cowen (Laois-Offaly, Fianna Fail)
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A memorandum for Government is at an advanced stage of preparation. It sets out the background and rationale for this country getting involved in and providing an initiative in this area. Clearly, if there are issues they will be considered presently by the Department of Finance and the Revenue Commissioners in the context of the preparation of a finance Bill. The normal avenues of discussion or consideration are being given to issues. They are being thought through to see whether initiatives or provisions can be brought forward to assist this area consistent with the recommendations that are set out in reports which identified the potential for this to proceed. It is normal practice that until consideration is finalised by Government in terms of the general policy areas concerned or any specific initiatives that require statutory provision such as, for example, the finance Bill, they would be provided for in the normal way at the time of publication of such legislation.