Dáil debates

Tuesday, 6 March 2012

Other Questions (Resumed)

Official Engagements

4:00 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 11: To ask the Taoiseach if he will report on his attendance at the Invest in Ireland Roundtable hosted by former President Bill Clinton in the United States on 9 February 2012. [7939/12]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 12: To ask the Taoiseach if he will report on his trip to the US on 15 February 2012. [9622/12]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Question 13: To ask the Taoiseach if he will report on his recent visit to the United States of America. [9628/12]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Question 14: To ask the Taoiseach if he will detail the corporations and financial institutions he met on his recent visit to the United States. [9629/12]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 11 to 14, inclusive, together.

On Thursday, 9 February I attended the Invest in Ireland Roundtable in New York organised and hosted by President Bill Clinton. I am deeply grateful to him for his commitment and efforts to support Ireland as the Government intensifies its national recovery efforts. He promised his assistance to Ireland at the Global Irish Economic Forum held in Dublin Castle last October and delivered on this commitment in New York through top level engagement with a range of US investors and companies. This presented a significant opportunity for the Government to highlight improved investment opportunities in Ireland for existing US investors and leading US executives who do not yet have a substantial business interest here.

One clear message from the Invest in Ireland event hosted by President Clinton was that existing investors had faith in Ireland and the Irish people and our capacity to bring about economic recovery. More generally, there was an acknowledgement that Ireland represents a highly attractive investment opportunity and I expect that over the coming period, IDA Ireland will follow up closely on all the contacts made.

The investment round table was followed by a broader Invest in Ireland forum that was hosted by me, the Tánaiste and the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton. President Clinton also attended and addressed this audience. I briefed members of the Global Irish Network and other friends of Ireland on the round table's outcomes and we discussed further opportunities for deepening economic links between Ireland and the United States. The response again was excellent and I commend all those involved in the Global Irish Network on their ongoing support.

The following week I returned to the United States for a series of further engagements that represented further opportunities to promote Ireland as a place of excellence in which to invest and do business. I also attended a function in aid of the Children's Medical and Research Foundation. Between 15 and 17 February, I visited New York and Boston, where I met more business and political leaders, senior executives of IDA client companies and senior tourism representatives. My key messages were that Ireland is indeed open for business, that the economic strengths which attracted foreign direct investment in the past, in particular from the United States, are even more attractive at present and there never has been a better time for US companies to invest in Ireland and its people, whether they are IDA client companies that already have a presence here and are considering expansion or companies that may be considering investing here for the first time. During my visit, I had meetings in both New York and Boston with senior executives of a number of companies that already have significant investments in Ireland and which employ nearly 10,000 people between them.

In New York, I had a meeting with Mayor Bloomberg in City Hall. I also attended the launch of Tourism Ireland's new marketing campaign and met many senior tourism trade representatives who will be marketing Ireland to their client base across the United States. I visited Governor Deval Patrick of Massachusetts, and during our meeting I took the opportunity of inviting him to lead a trade mission to Ireland. I attended a dinner hosted by the American Ireland Fund at which I met a number of senior executives of companies that are leaders in the financial services industry and other sectors. I also attended a business breakfast hosted by the Irish American Partnership and addressed an audience at an event hosted by Enterprise Ireland for business contacts and clients in Boston and the wider Massachusetts area, including companies in the life sciences, ICT, software and financial services industries. My visits to New York and Boston continued the theme of the Invest in Ireland round table and forum, namely, now is the time to invest in Ireland. Similar to the round table event, I was greatly encouraged by the positive responses I received about Ireland and the potential for future investment. In addition to the economic and business focus of my visits, I took the opportunity of my first visit to Boston as Taoiseach to meet the Irish-American community there and to address students at the Harvard Kennedy School of Government on the theme of reasserting Ireland's place in the world.

The Government will continue to ensure that clear and positive messages are conveyed directly to key business and political interests in the United States. It also will use the unique global opportunity of St. Patrick's Day to bring these messages to a wider audience both within the United States and in all our key global markets, namely, now is the time to invest in Ireland's recovery and that we are open for business.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Was the Taoiseach watching events at the RDS at the weekend? I do not mean the Fianna Fáil Ard-Fheis.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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At the RDS.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Yes. Was Deputy Martin at the RDS?

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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He was apologising to the nation.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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To which venue does the Deputy refer?

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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I refer to the Working Abroad Expo. Quite a few people commented to me about it and I made a special effort to watch a news clip on it. It was graphic testimony to what is happening in this country in that 5,000 or more, mainly young, people were queueing up to find out whether they could get work elsewhere. It is a sign of where we are and of the great haemorrhage of our youth. That said, it shows up both the challenge facing us and the failure of austerity. However, I wish to especially commend the work the Taoiseach has done in the United States. It is a good initiative that I support fully and warmly commend. I also commend and thank President Clinton for his efforts.

However, because the diaspora thinks and cares about home, there are other ways to get them to connect to us. Perhaps the Taoiseach has had the opportunity to raise the possibilities offered by the proposed constitutional convention. I have made this point previously and have written to the Taoiseach in this regard. The diaspora wants to see the country back on track and wishes to be involved in its recovery. There is a perfect opportunity to involve the diaspora in this regard in order that we are not always simply asking them to do things. Instead, there is an opportunity to give them their rights as citizens to vote in presidential elections and so on. I note these are rights enjoyed by citizens of other states. I acknowledge the Taoiseach will have the opportunity to so do around St. Patrick's Day but did he raise the issue of Pat Finucane with anyone as he had promised? He had stated he would raise this issue in the United States. Did the Taoiseach have the opportunity and did he raise these two matters?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I thank the Deputy for his comments regarding the interaction with American business and politics. I also saw the pictures on television showing people who attended the aforementioned expo at the RDS. It is disheartening to see people there, particularly those who are in their 30s and mid-40s, who may be married with families but where unemployment has hit either one or both partners and for whom it is very difficult to make ends meet. This is part of the critical issue faced by the Government and when we get our own public finances in order, clearly we will have more money to invest in important social services such as schools, health or whatever. However, I make the point that I recently visited Cork, where I met representatives of a number of important firms there who informed me there are 800 vacancies in that region for information technology people. Moreover, there are 4,000 vacancies nationwide in the information technology sector. Similarly, I spoke to someone last week who seeks 100 fluent German speakers but such people are not available with the requisite fluency level. This problem was highlighted to me by the French representative at the recent Tripartite Social Summit for Growth and Employment, who told me that although they have 50,000 vacancies in southern France, they do not have the skill mix to meet them. We need an opportunity to discuss these issues rationally in Ireland because the manner in which FÁS used to be structured meant that while it did some good work in a number of areas, it is clear that where people sought particular competencies, they were not always available. In this sense, the change from FÁS to the Department of Education and Skills and the Pathways to Work programme published by the Government hold enormous potential.

I met someone yesterday who has €2 million on the order books and who is seeking money from the bank but the latter has stated it needs that person's house as collateral. This example demonstrates we must have a functioning banking system, which is the reason it is important to bring on stream the legislation for partial loan credit guarantees and the micro-finance agency as effectively as possible. There is nothing wrong in stating we have the wrong skill mix in places. Moreover, there are sectors - not enough, obviously - in which jobs should be filled but those who would fill them are not available from our own resources. This is the reason I commend the Minister for Education and Skills on the range of conversion courses he has put in place. In this context, when we launched the Pathways to Work strategy in the Liberties, it was interesting to talk to people who had been graphic designers, architectural technicians, construction workers or administrative back-up staff but who are changing their career pattern completely with digital training and everything to which that world leads. I have a sense of optimism and hope in this regard.

The Tánaiste and I this week will launch the opportunity for the diaspora to be involved in a global sense in the potential for job creation here in Ireland. I believe the Deputy will find this to be a highly exciting and imaginative proposal, which will be made into a reality, and which came from an entrepreneur here in Ireland. The Deputy will find it to be significant as it will give an opportunity to those who are emigrants abroad or have businesses abroad. One should remember there are 80,000 people employed in Irish-run companies in the United States who may have ideas about job creation here. We will give them this facility, in a digital global sense, to participate in this regard. We discussed the constitutional convention last week and we will have a further meeting on it soon.

I did not raise the issue of the late Pat Finucane when I was in the United States. Most of the meetings in which I was involved related to either business alone or business and politics. I will return to the United States for St. Patrick's Day and I will take the opportunity to raise the matter at that stage in the political forum in which it should be raised. I did not raise it on my recent visit because I was more concerned with dealing with issues such as the economy, our reputational status and the opportunities that exist in respect of investing in Ireland.

President Clinton pointed out that in view of the current demographic in this country - namely, the fact that so many of the population are young - and the potential that exists here, people should give serious consideration to investing in Ireland. Our tax system, talent pool, technological capacity and track record offer an unbeatable package to investors. This package is another reason there is a continuing and strong line of investment from the US - which I welcome - on the part of companies such as PayPal, Ely Lilly, Allergan, etc. It is also responsible for interest being expressed by the Vice President of China. The latter will probably lead the Chinese people, of whom there are approximately 1.4 billion, at some point in the foreseeable future. The Vice President's visit to Ireland was of exceptional significance internationally, particularly as ours was the only country in Europe he visited on his journey home to China. We hope to follow up on what happened last month with a series of visits to China by, for example, Ministers with responsibility for education, the agri sector, jobs and innovation. I hope to take up the Vice President's invitation to visit China at the end of this month.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I welcome the comments the Taoiseach repeatedly made in the United States to the effect that the 2011 budget has been central to restoring international confidence in Ireland. I accept that it would be too much to expect the Taoiseach to acknowledge the fact that he voted and then ran an election campaign against that budget.

Does the Taoiseach agree the deep connections which have been built up over the years with major US investors remain strong and were central to many of the key investment decisions that have been taken? In essence, the foreign direct investment strategy that has been pursued for many years continues to ensure a solid pipeline of inward investment, once the fundamentals relating to corporation taxation, structure, skills and the overall environment for facilitating the conduct of business and industry are right. PayPal, for example, has been operating here for some time and I was delighted with Eli Lilly's recent announcement. The latter also made an announcement of this nature in 2006. I ask the Taoiseach to clarify the position but it seems these and other major US investors involved in producing pharmaceuticals, medical devices and technology remain committed to Ireland. Notwithstanding issues which may arise from time to time, the companies to which I refer tend to comment very favourably on their experience in this country. In particular, they tend to comment strongly on the quality of the skillsets among those who work in the industries to which I refer. In the area of the pharmaceuticals industry and in the context of the relationship with the US Food and Drug Administration, FDA, a strong record of compliance has proven to be a key factor in our continuing to attract major investment. Such investments have been made notwithstanding the challenges which the industry faces.

Will the Taoiseach outline what happened at his meeting with the Global Irish Network, a body I established some years ago? There are key individuals on this network who can help us, particularly in respect of the financial services and other sectors of the economy.

Will the Taoiseach indicate if he engaged in discussions with personnel, either political or business, in the United States in respect of the proposals of President Obama and his Administration to alter their country's treatment of the foreign earnings of corporations? Was that matter raised during his visit and did he comment on it? What are the indications emanating from the White House in respect of this proposal?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I agree that the connections which have been in place for so many years, be they in the areas of art, literature, music, politics, business, economics or trade, remain very strong. I recognise that the process relating to foreign direct investment from the United States has evolved from one where we attracted companies which produced computer hardware to a model where a great deal of computer software is now developed and produced here. Ireland provides both an English-speaking launch pad into Europe and a strong legal base. The Deputy is well aware of this and I recognise his association with helping to develop the process to which I refer. As an agency, IDA Ireland has been superb - in the face of intense worldwide competition for investment - in continuing to promote the structures, environment and skills which exist in this country. In that context, I refer again to the package of the four T's - technology, tax, talent and track record - and the importance thereof.

The chief executive of a major company based in California informed me that it sited its European operations in Dublin not just because of the common language, the corporation tax rate or the fact that this is a young and vibrant city but rather as a result of the passion of young people for their work. He further stated that it is their desire to be able to create the future and to be challenged in doing so, which makes them stand out from any of their peers across the globe. I am sure the Deputy will agree this is something of which we, as Irish citizens, can be very proud.

This morning the Government dealt with the issue of a number of US companies here which traditionally have been able to operate their accounting systems without having extra charges imposed on them by means of double accounting systems. The facility that exists in this regard has been extended.

Deputy Martin established the Global Irish Network, which is an important entity. We hope the network will evolve and change to reflect the new circumstances that exist in the US. President Obama's proposals in respect of tax did not emerge until after my visit to America. During the meetings we had, we asked the business people we met to prove how serious they are with regard to what they are doing in Ireland. A number of questions arose with regard to stability in the context of our 12.5% rate of corporation tax. As the Deputy is aware, the Government has been very clear in respect of this matter. There will be no movement in respect of the rate, which is transparent across the board and which gives rise to an actual effective rate of 11.9%. It is clear that American companies in particular welcome certainty, decisiveness and horizons against which they can plan their business. What we had to say on this matter was very much acceptable to and very much accepted by them.

As the Deputy is aware, this is an election year in the United States. The representatives from a number of companies which are big players in America and which have operations in Ireland also understand that fact. They are aware that if the US Administration were to follow through on its proposals in respect of tax, the process that would have to be undergone would be both long and tortuous. When he visited this country last year, President Obama informed me that while the recommendation was being made, he wanted to make it clear that even if the Administration were to follow through on it, the process relating to it would be very long.

During my visit to the US there was some discussion on the corporation tax rate but the main focus was on the fact that Ireland is very much seen as a country about which people are positive and in which they find it beneficial to invest. We hope to keep the link to which Deputy Martin refers very much alive and to be vibrant and energetic about our work in this regard. We inform those in business in the United States and beyond of the decisions being taken by the Government to assist the business sector here. I found the interaction with those involved in business and politics in the US extremely stimulating in the context of their interest in Ireland as a destination for continued investment in the future. The latter is extremely important, not only with regard to the jobs directly created as a result of such investment but also in the context of the knock-on effect for small and medium enterprises here which can provide supplies and facilities for the companies involved.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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On skills availability and the 800 placements in the institutes of technology - a matter to which reference has been made for the past five or six months - there are a number of ready-made solutions. It is time for a more hands-on approach from the institutes of technology and the Department of Social Protection to match people with skills. There are people with qualifications who cannot get jobs and there is a mismatch somewhere between the industry on one hand, where there are indications of vacancies that cannot be filled, and people coming to us saying they cannot get a job.

We had this issue before and more than a decade ago we set up a task force for technicians, for example, which involved companies, institutes of technology and the long-term unemployed. We prepared an 18 month programme which got these people off the dole queues and into secure jobs. With a hands-on approach, this could be rectified fairly quickly.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I agree with this. The Deputy would be aware that there were occasions in the past when a company would seek a forklift driver but would be sent a painter or somebody in an entirely different trade. It is a case for the personnel working in the new sectors, both in the Department of Education and Skills in so far as training is concerned, and in the Department of Social Protection where the categories, competencies and experiences of people are known. They must match these elements.

It is most unfortunate when people say they have looked for a job for two or five years and there is nothing for that person. As the Deputy has correctly noted, if they are asked about experience, competencies and what they would like to do, they can be directed to upskilling or a change of direction. It is a case of being imaginative and responsive to the human resources that exist. Rather than referring to this as a live register issue or the number of people unemployed - that figure is way too high - we should consider the resource of people available for employment. I hope that under the new Pathways to Work scheme and training facility in the Department of Education and Skills, the matches can be attained far more quickly. As the Deputy knows, a job can transform a life and bring a whole new change of attitude and confidence. That is where we must focus our energy and activity for the period ahead.

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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When will Deputy Martin fill the job vacancy he has?

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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I once again warmly endorse the work being done in the US and it is a matter of the Taoiseach's judgment what issues he wants to raise. Having said that, it is disappointing that he did not get the opportunity to raise the Pat Finucane case. I find that sometimes these matters do not have to be raised publicly, especially if dealing with people who might not necessarily be involved in politics. It can also be done quietly on the side, which sometimes works as well.

The Taoiseach, uniquely, will have the opportunity on St. Patrick's day to meet President Obama, the US Secretary of State and the leaders in the Senate and the House of Representatives. He will meet leaders in the labour movement, the arts and business across a spectrum of opinion in the US. Geraldine Finucane, who is Pat Finucane's widow, will also be in the US at that time to campaign, as she has done for over 20 years. I suggest this as an opportunity for the Taoiseach to raise this matter very publicly.

There is also the issue of the so-called illegals, the Irish people who, through no fault of their own, have ended up in the US with no status. We have just referred to at least 100,000 people who have left this country during the Taoiseach's time in the Government. I was in the North on Sunday and there are many other issues of concern there which could usefully be raised. I can drop a note to the Taoiseach on those matters, if that would be helpful.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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One must judge when to raise matters like this. It was not appropriate in the circumstances in which I found myself to raise a matter like the Pat Finucane case in a mixture of business and politics, as it would have been of considerable interest to the political side but not to the business side. These parties would have told the story of investment in Ireland or heard of the opportunities that exist here.

As the Deputy is aware, when I met Geraldine Finucane and her family in Belfast, I undertook to raise this matter when I got the opportunity. I will do so because, as I have said to the Deputy and others in the House on many occasions, at Weston Park the agreement was that irrespective of what Judge Cory would decide, the two Governments would act. In this jurisdiction, the Smithwick tribunal was set up following the judgment. Judge Cory made a clear recommendation that there should be a public inquiry into the murder of Pat Finucane. I have a difference of opinion with the British Prime Minister on this and, as the Deputy knows, he has appointed a Queen's Counsel to consider the matter. When I met Geraldine Finucane and her family, I undertook to raise this with political representatives in the United States, and I will do so.

With regard to the undocumented, I had a good meeting with representatives of the Irish Lobby for Immigration Reform in New York. I also spoke to Senators McConnell and Brown from Boston and I met Senator John Kerry. I spoke to Governor Deval Patrick, who is a close acquaintance of President Obama, about the matter. The Deputy is aware of the efforts being made by Senator Schumer and others. There are two Bills going through the legislative process currently, one from the Democratic side and one from the Republican side. The Democratic end has been sort of cleared but neither side can put this through because they need assistance from each other. Clearly, there are political considerations between New York and Boston and, from a Democratic perspective, the holder of the Senate position in Boston.

There is much conversation and activity between both sides and there is an agreement that it could get through but it would need support from both sides. As I have pointed out, it is not for Ireland to interfere in the wrong place but we would greatly encourage the Senators in putting through this proposition. That would only deal with E3 visas, that is, people who may go to the US in future. Neither Bill going through Congress deals with the limbo in which the undocumented find themselves now. We have discussed that on a number of occasions. As it is a year for presidential elections, I cannot see anything happening of any great significance in respect of the undocumented as it feeds to a much bigger problem for undocumented and illegals from other countries. That brings with it its own political sensitivities, particularly in the southern states in America.

We are very happy to engage with the Irish groups and American politicians in encouraging this work. While I hope that a conclusion can be brought in respect of future E3 visas - that is a good proposition - we will have to revisit after the presidential elections the question of the undocumented, not only for Ireland but other countries as well.