Dáil debates

Tuesday, 25 February 2014

Ceisteanna - Questions (Resumed)

State Visits

4:45 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

3. To ask the Taoiseach if he will report on his recent visit to Japan; and if he will make a statement on the matter. [52527/13]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

4. To ask the Taoiseach if he reached any specific agreements with the Government of Japan on job creation and investment; and if he will make a statement on the matter. [52528/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

5. To ask the Taoiseach if he held any bilateral meetings in Japan; and if he will make a statement on the matter. [52569/13]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

6. To ask the Taoiseach if he will report on meetings he has had with Japanese Government officials during his recent visit to Japan. [53717/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

7. To ask the Taoiseach if the issue of Japanese-Chinese relations were discussed at the bilateral with Prime Minister Abe; and if he will make a statement on the matter. [53723/13]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

8. To ask the Taoiseach if he will report on his recent meetings with the Japanese Government during his visit to Japan; and if he will make a statement on the matter. [6349/14]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 3 to 8, inclusive, together.

I visited Japan from 1-5 December in response to an invitation extended to me by Prime Minister Abe during his successful visit to Ireland in June last year, following his attendance at the G8 Summit at Lough Erne. The key objectives of my visit to Japan were to further increase Ireland’s trade, economic and political relationship with Japan and to explore potential areas for future collaboration between our two countries. I was accompanied on the visit by the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, reflecting the very significant potential for co-operation and trade in the agrifood sector between Ireland and Japan.

While in Tokyo, I had a meeting with Prime Minister Shinzo Abe and welcomed the opportunity to resume our conversation on the enhancement of bilateral relations between our two countries. The Prime Minister and I noted the very positive development of political and economic relations between Ireland and Japan in the recent past and resolved to expand this bilateral relationship for the mutual benefit of both countries, including by encouraging greater levels of trade and investment.

We noted that 2017 will mark the 60th anniversary of the establishment of diplomatic relations between Ireland and Japan, and we decided to set that timeframe as a target for achieving a number of specific projects involving economic, cultural and research collaboration. To this end, Prime Minister Abe and I agreed on a new partnership for growth and innovation, which will provide a framework for the development of relations between Ireland and Japan over the next four years. The declaration will provide a platform for a new phase of Ireland-Japan co-operation in a wide range of areas, and builds on recent work at home to enhance relations with this key global actor.

I briefed the Prime Minister on the current economic situation in Ireland and on what was then our impending exit from the EU-IMF programme of assistance. I explained how we have restored our economy to growth and stabilised the national finances in a short space of time. The Prime Minister, in turn, briefed me on his Government’s success in revitalising the Japanese economy through his three-pronged economic model, commonly referred to as "Abenomics".

I welcomed the announcement by Japan that it is re-opening its beef market to Irish exports. The decision means that Japan is open to Irish beef for the first time since 2001 and marks Ireland as one of a select group of countries allowed to export beef there. I am satisfied that the announcement is another key milestone for the Irish agrifood sector, the beef sector in particular. It is a sign of international confidence in the quality of Irish food and is a further vindication of Ireland’s focus on quality and sustainability.

Prime Minister Abe updated me on Japan's relationship with China and noted ongoing maritime and territorial issues. I said that these are clearly very sensitive issues and that Ireland, along with all EU partners, would encourage all countries to resolve them in a peaceful manner, through dialogue and diplomatic engagement, and in accordance with international law.

During my visit to Tokyo, I also had the great honour of meeting with Crown Prince Naruhito and with the Japan Ireland Parliamentary Friendship League. I met with Japanese and Irish companies which are active in research and development and the services sector at an event designed to increase collaborative research projects for the mutual benefit of both countries. I attended a symposium on green energy, co-organised with the Japan External Trade Organisation, JETRO, to highlight opportunities and latest technologies being developed by Irish companies with core strengths in this important priority sector for both countries. I delivered a keynote address on current and future developments in Ireland-Japan relations in a globalised world at the Japan Institute of International Affairs.

I was accompanied on my visit by a large number of company representatives with business interests in both Ireland and Japan, including groups from the ICT, financial services and agrifood sectors. The mission also included a special programme for Irish food exporters seeking market outlets in Japan.

Following two days in Tokyo, I travelled on to Nagoya and Osaka for further meetings with Irish and Japanese business leaders to promote trade, investment and business-to-business links. I also met with the Governor of Osaka Prefecture, Mr. Ichiro Matsui.

I was delighted to have an opportunity to visit Japan as part of our ongoing strategy to promote trade and investment, to strengthen Ireland’s international reputation and to convey to a wider audience the extent of Ireland’s progress toward economic recovery. Ireland and Japan have a long and well-established political and economic relationship, and this visit provided an opportunity to develop our economic, political and cultural links somewhat further.

During my visit to Japan, I was pleased to have the opportunity for a brief informal meeting with US Vice President Biden, who was in Japan as part of a wider visit by him. I will answer questions tabled by Deputies on that in the next group of parliamentary questions.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Ba mhaith liom an Taoiseach a mholadh as an chuairt a thug sé chuig an tSeapáin roimh an Nollaig. Tá a lán deiseanna dúinn sa tír sin. Bhí mé ag caint le Martin McGuinness agus tá a fhios agam gur bhuail an Taoiseach le Príomh Aire agus an Leas-Phríomh Aire, Peter Robinson agus Martin McGuinness agus molaim sin fosta. Bhí an bheirt sin an-sásta bualadh leis an Taoiseach agus sílim go mbeidh muid ábalta leanúint ar aghaidh i gceart ag obair le daoine sa Tuaisceart. Mar a deir an seanfhocal: Ní neart go cur le chéile. Molaim an obair thábhachtach seo.

The Taoiseach knows there is huge potential. Half of the world's population is in the Asia-Pacific region and within a decade it will account for half of the world's output, so increasing our political investment and trade ties to the region makes sense. I very much commend the Taoiseach's visit and the work he did there. The establishment of a partnership for innovation and growth, covering the range of issues the Taoiseach outlined, is an important and very welcome initiative, as is the Japanese Government's decision to reopen the Japanese market to Irish beef, which is potentially a hugely important matter.

With regard to the other issues the Taoiseach outlined as having been discussed with Prime Minister Abe, particularly around the EU-Japan free trade negotiations, when does the Taoiseach expect to see the detail and will there be an opportunity for the Dáil to debate these issues? The Taoiseach also raised the issue around the tension involving China and Japan, and other Asia-Pacific nations, over territorial waters and the exploitation of their resources. That brings us to how we, a small place, can influence these matters. It also brings us to the issue of reform of the UN, because it is clearly an international agency that has a particular function in that regard. The Sinn Féin position is that it does need reform, particularly the Security Council. Was the Taoiseach able to tease out any of that?

In March 2015 the third World Conference on Disaster Risk Reduction will be held in Japan. While I do not know if the Government has had the opportunity to consider this, will this State be represented at that conference?

I note, and thought it very positive, that the Taoiseach met with the First Minister and Deputy First Minister while he was there, and I know he did the same thing in regard to China and other initiatives he has taken on jobs, exports and so on. I note also that Minister for Enterprise, Trade and Investment, Ms Arlene Foster MLA, joined the Minister, Deputy Richard Bruton, on a joint trade mission to Singapore recently. Are additional steps being considered to promote co-operation between the Executive and the Government on job creation, economic growth and similar initiatives? There is a need for us to not compete with each other, particularly when we are dealing with this in a global way. Most people away from Ireland see it as one island, and clearly we should be marketing it in that way. I thank the Taoiseach for his answer.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Deputy Adams raised a couple of important points. First, I did have the opportunity to refer to the tensions that exist between China and Japan in regard to the Senkaku-Diaoyu islands in the East China Sea.

I pointed out that as a very small country in comparison to the populations in China and Japan, we have had some experience of difficulties and troubles and how they might be resolved by dialogue and negotiation rather than confrontation or unwanted events. The High Representative of the Union for Foreign Affairs and Security Policy, Dame Catherine Ashton, has already visited there on a number of occasions, as indeed has Vice President Biden, which was the subject of a different question. For our part, I said that after 30 years of difficult and tension-filled periods, the Good Friday Agreement was put in place. The prime minister was conscious of that although they are clearly enormous powers in their respective areas.

It is important to note that from a cultural point of view, the name of Lafcadio Hearn is of significant importance in Japan and that the Japanese people through the ambassador are anxious to contribute to the provision of a cultural garden in Tramore in County Waterford because of Lafcadio Hearn's impact on Japanese literature and culture. It is important that we note that the first western adviser to a Japanese emperor was an Irishwoman called Eileen Kato who was originally from Crossmolina, married a Japanese diplomat and had an important responsibility in advising the emperor before she passed away. Obviously, the status of the emperor of Japan changed after the Second World War.

Deputy Adams is correct when he points out that the populations are of enormous significance. This is why the Government is looking at opening an embassy in Jakarta and is trying to impact to a greater extent what we can do in Japan, China and other countries. We are always happy as a Government to assist the First Minister and the Deputy First Minister. It happened in China and Japan. During our Presidency, we were happy to have some personnel from Northern Ireland in the permanent representation in Brussels so that they were fully acquainted with what was going on. The Bruton-Foster visit to Singapore was important in respect of the potential to supply goods and services to many of these areas. I hope that this can continue.

It is important for the House to reflect on what is happening with the debate between Europe and Great Britain and the debate between Northern Ireland and Europe because there are implications depending on what the Scottish people do in their referendum later this year and what the future holds. One can very quickly see the impact of many of these things in the Swiss constitutional vote in respect of migrant workers and the impact of that on the European Union and its attitude. It is important that we understand that these things have implications and that we need a debate and understanding between the Government, the First Minister and the Deputy First Minister relating to Northern Ireland and the wider context.

Some of the companies I met in Tokyo and Osaka were major operations. I recall the "Origin Green: Natural and sustainable Irish Food and Drink" breakfast I had with many of the companies. They are very intrigued by the quality and standards of Irish food. Some of the financial people are extraordinarily wealthy in terms of their capacity to invest. I came across quite a number of young Irish engineers working for different firms in Japan, learning new ways, having different experiences and also contributing to the challenge of the frontiers of both the digital world, mechanics, engineering, physics and all these things that are having an impact on us.

I had never been to Japan before and I must say that I found Japanese people to be absolutely respectful, really interested in a country like Ireland and very anxious to understand the philosophy driving Ireland and to do business with us as a gateway into the EU. From the Government's perspective, we will follow through with visits by other Ministers to build on these relationships, which will yield benefit for our people in terms of jobs here and our economy in the times ahead.

4:55 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the Taoiseach's visit to Japan, particularly the theme of developing a very strong, deep and enduring relationship with the Japanese people. Of course, he will acknowledge that this has been a historic feature of our relationship going back 60 years. Much work has been done over the years, particularly on the academic and research side. I pay tribute to the Higher Education Authority and Science Foundation Ireland for some of the work they have been doing. They deserve credit for much of the work that has now led to a formal research partnership, which I warmly welcome.

I have been on a number of trade missions to Japan in a previous role as Minister for Enterprise, Trade and Employment. We were the first to initiate the idea of companies from Northern Ireland coming along on an Enterprise Ireland trade mission. Out of that experience has come my view that if one is looking for a new North-South body relating to indigenous enterprise and companies in the Republic and Northern Ireland, like the tourism agenda and selling the island of Ireland abroad, there is much to be said for synergies between the two bodies in terms of promoting companies on the island in far-flung areas like China and Japan. It pools resources, makes the marketing arm and footprint of Enterprise Ireland available to companies in Northern Ireland, makes the marketing expertise and footprint of Invest Northern Ireland available to companies in the Republic and gives them wider opportunities to travel on trade missions to sell their products, goods and services. It is one area that should be pursued in terms of rejuvenating the North-South agenda. There is much that could happen there without threatening anybody or anyone's political perspectives because I have no doubt that companies, as the Taoiseach has probably experienced, really have no issues with that at all and welcome the opportunity to gain access. When one combines our respective diplomatic networks with the enterprise agencies, one can achieve a lot for the companies involved, particularly those Irish indigenous companies that want to export and gain increased sales. I welcome that joint endeavour with the Northern Ireland Executive and companies.

Does the Taoiseach have the up-to-date position regarding Japanese foreign direct investment? From the 1970s and 1980s, a wave of Japanese companies came to Ireland. The benefit of Japanese companies in Ireland is that they have been very loyal, notwithstanding the up and down nature of the economic cycle. They have a different approach and tend to stay in for the long haul once they come to a country, particularly Ireland. I have a sense that initial wave has not been replicated. I am not criticising anybody other than to say that I would have thought our footprint could have been stronger from an IDA Ireland perspective. It is stronger now. The question is whether we are getting the level and volume of foreign direct investment we could expect and whether we could improve on that. Is the Government committed to providing the funding to IDA Ireland and Enterprise Ireland and is it satisfied that the backup and resources from a personnel perspective are sufficient and strong enough to reflect the push that must be made to get investment from Asia? The 21st century will be about Asia in terms of economic growth and development so we must be there.

I warmly welcome the opening of the beef market. That has been a long journey of negotiations and lobbying going back to the initial outbreak of BSE. The opening of the market is a good outcome for all our veterinary staff and those who worked hard behind the scenes. It will not be an easy market because standards are extremely high in Japan.

It is the best market to which to export if one wants to test the quality of one's products. They will not survive if they are not up to the mark. The opening up of that market to Irish beef is a welcome step and, hopefully, will provide greater diversity to our farmers, exporters and food companies.

The Taoiseach met Vice President Biden on his visit to Japan. I do not know whether it would be appropriate to-----

5:05 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is the next question anyway.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
Link to this: Individually | In context | Oireachtas source

There is a group of questions coming up on that matter.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I will leave the matter, so.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank Deputy Martin for his comments. I agree - I think this is a good suggestion. I recall when I was Minister for Tourism and Trade the Canary Wharf bomb - I think it was in 1996 it went off - and the Earls Court tourism show was to take place two days later. People at the time were saying it should be called off in its entirety. Up until that point, the Northern Ireland Tourist Board and Bord Fáilte were in two separate stands. The agreement was to put them all on the one stand. For the first time ever, we had the island of Ireland expressing itself as a tourism location.

I agree with Deputy Martin's suggestion. These are important elements of synergies and collaboration and, therefore, greater benefit. I must say that, both in China and in Japan, I had the opportunity to meet with the First and deputy First Ministers and our for own Government representatives, Enterprise Ireland, the IDA and so on t meet with their counterparts. It was taken in that spirit because there are services and particular specialties in Northern Ireland that are not available here. Between both of them, the island of Ireland can gain as a consequence. I think that is a good suggestion.

The Minister, Deputy Bruton, Minister Foster and their counterpart from Britain were the first "troika", if one likes, to go to Singapore. We hope to be able to continue that. The Commonwealth's reach of offices is so much greater than we could afford as an entity here and I am sure those facilities are available for this kind of visit.

Inward investment is not as strong as it could be. There has been a 20-year recession by Japanese standards in Japan. Prime Minister Abe's engagement was a signal of prime ministerial interest in Ireland as a growing nation in terms of what it is that we offer - IT, pharmaceutical, software, data storage, analytics and all of these areas. He made it clear that the companies with which we met, some of which are in banking, financial services, engineering and so on, could see this country as a launching pad into Europe. I hope it will improve and increase. Certainly from my experience of talking to Japanese companies, they are seriously interested in a country with stability and in a country that is making a serious effort to get out of its economic difficulties. They clearly understand the distance that Ireland has travelled in a short time. If we keep up the level of engagement with them in terms of visits and back-up in terms of Enterprise Ireland and the IDA we hope we can get this level of investment to a higher state.

Prime Minister Abe was very interested in being able to finalise the approval of entry of beef to the Japanese market. Deputy Martin is right - there is no room for messing here. The standards have got to be what the Japanese people require. In that sense, when I was there for two days, they had quite a number of meat producers from Ireland in Japan learning exactly the standards of cut that they require. The producers and their skilled personnel were in the factories, where it was demonstrated how it should be cut and presented for what the Japanese people require. In that sense, they do appreciate that, as a grass-based industry here, the quality of what comes in Irish beef is of exceptional levels but it has got to be presented right. In that sense, that message has got through very clearly.

My view is that this is a market that we can grow again to more than the €15 million that it was before. Since we were blocked out in 2001, it is a challenge to build it up to what it was, but the standards will speak for themselves. Those in the meat business know that there is no opportunity for wasters, inefficient production or inefficient levels of service.

For the Japanese people, in terms of what is presented to them, perfection is the requirement. One of the points made to me by one of the major firms was that goods being damaged or scratched or packages being dented in any way was not acceptable. One company built its own plant in Japan for packaging goods for distribution to Japanese customers because it is not acceptable that the goods be in any way inferior in terms of what they demand. So, they set standards across the board. It takes a little time to understand the extent of just how perfection is an issue with them culturally. To break into the market requires patience, understanding, consistency and that level of perfection, something that struck me very forcibly. Something that is not acceptable in Japan might be acceptable in other countries.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

It is not surprising that the Taoiseach would get on well with the Prime Minister, Shinzo Abe, since both come from neoliberal and conservative political parties on the right wing of the political and economic spectrum. Apart from the business of adding a few ha'pennies of trade to the pence of trade while the Taoiseach was there, did he discuss with the Prime Minister the bigger picture and did he learn any lesson from Japan's disastrous economic situation of the past 15 years? I am sure that his advisers briefed him on the large property bubble that was built up, the land bubble, the significant speculation that occurred and the inevitable crash, as is part of the workings of capitalism, which led to a disastrous deflationary period for a considerable amount of time. As a result, the debt-GDP ratio is 230%.

The Taoiseach seems to have learned much in Japan but where the two key elements of the Prime Minister's policy, those being, fiscal stimulus and monetary easing, are concerned, the Taoiseach is continuing with the exact opposite - failed policies of austerity, bank bailouts, etc. This policy failed in Japan for years, requiring the turn by its current Government. Investment was also very low because big business was not re-investing sufficiently to create a stimulus.

While I am always cautious about what the outcome of "Abe-nomics" will be, given the fact that we are still working within the parameters of the capitalist economic and financial markets, the internal workings of which caused the ongoing crisis regardless of who was in charge, has the Taoiseach considered how he needs to learn from the deflationary situation that existed in Japan and the requirement for a change in policy in Ireland to end the austerity, and for major public investment in real job creation?

I will ask a last question.

I am sure that the Taoiseach was probably quite envious of the prime minister and his party, considering that they have been in power since 1955, apart from about four years, in spite of a very dubious history of the American CIA fashioning quite a bit of their policy over the years, corruption scandals and all the rest of it. In spite of the Taoiseach's close conservative links with the Liberal Democratic Party of Japan, I do not wish him similar success in terms of longevity.

5:15 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for that. We looked at the bigger picture, which is the programme of expansion and investment being considered by Prime Minister Abe and his government. Japan is an extraordinary country, with an extraordinary standard of living and an extraordinary level of investment, despite the fact that it has suffered recession for many years.

The Deputy asked about the situation here and the European Central Bank. I made this point on many occasions. Our priority for 2014 is to focus on our indigenous economy. Hopefully we can achieve 2% growth this year, 2.5% next year and 3% the year after that. This means a challenge of creating 50,000 net new jobs this year and the same again next year. Banking is an issue here, in Europe and all over the world. We want to see banks contributing to the real economy here. That means access to credit for small and medium enterprises, and the opportunity to follow through on incentives that can be provided. We need to do something about our construction sector, which is not contributing what it should. Hopefully, we can make it much more effective than it is at the moment. The European Commission presented a report to the European Council some time ago of 800,000 jobs being available in the digital sector by 2015. We have a lot opportunity in Ireland with all our potential, but we need to develop that.

Mr. Draghi has made his position very clear about holding interest rates steady and on issues which Europe should follow. The European Parliament noted the opportunity for assistance to be given to Ireland for recapitalisation of legacy banks. That is still on the agenda and meetings held in January reaffirmed this. Banking union and similar steps towards making that case, while they are not of direct interest to Japan, are of interest to us.

I am not really interested in the Deputy's comment about the longevity of political parties. That is for the people to decide. They are always masters and judges, and we have to live by their decision. If the Deputy is in this business and does not understand that, then he should not be in it in the first place.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

That is true. Does the Taoiseach have any additional scéal about the Japan-EU free trade agreement negotiations, as well as the strategic partnership agreement? How close does he think these are to concluding?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context | Oireachtas source

They deal with these things at official level sector by sector. The same thing is happening with the transatlantic trade and investment partnership, TTIP, between the EU and the US. I do not have an up-to-date report on the intricacies of what they are talking about, but I can send the Deputy a report on when they are expected to be concluded. Obviously this is of interest to us.