Brendan Smith (Cavan-Monaghan, Fianna Fail)
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7. To ask the Tánaiste and Minister for Foreign Affairs and Trade if he will consider re-opening the Irish embassy in Iran; if he will provide a breakdown in tabular form by year of the savings made by the decision to close the Iranian embassy; if he still supports EU sanctions against Iran; and if he will make a statement on the matter. [28224/14]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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When the Tánaiste announced the opening of some consulates in January, there was an expectation that the embassy in Tehran would be re-opened. It is an important trading partner. I think the trade is worth €51.5 million on an annual basis. I know that on a successful visit by some members of the Oireachtas Committee on Foreign Affairs and Trade to Iran, they got a very clear message that the Iranians want diplomatic relations between our two countries brought to a new level with opportunities to increase trade.

Eamon Gilmore (Dún Laoghaire, Labour)
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The configuration of the State's diplomatic and consular network is kept under ongoing review by the Government. A range of factors are taken into account in considering our diplomatic representation overseas, including our political, economic and trade priorities as well as the availability of resources. The deployment of resources is also being considered in the context of the review of Ireland's foreign policy and external relations that is underway in my Department.

I can confirm that consideration was given to re-opening the embassy in Tehran as part of the expansion of the missions' network recently decided on by Government. Based on previous experience, it is estimated that the cost of a small resident mission in Tehran would be of the order of €500,000 per annum. The Government is conscious of the political, economic and trade factors that might warrant the opening of resident diplomatic missions in Iran and several other countries.

However, current resource constraints do not allow us to have resident representation in all the locations that might objectively justify it having regard to the aforementioned factors.

EU and other sanctions against Iran have been a critical factor in bringing Iran to engage in the negotiations now under way to resolve the nuclear issue. Sanctions have been slightly eased as part of the interim agreement reached in November but otherwise remain in force. They can be removed if a comprehensive agreement is reached, as is now hoped. Until then, they must remain in place as their removal now would seriously damage the prospect of reaching agreement on this difficult issue.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I thank the Tánaiste for his reply. I hope resolution of the nuclear issue can be advanced in the context of the Vienna talks. I am sure the new Iranian ambassador to this country has spoken to all political parties. He is very anxious that we move on and give added impetus to the diplomatic and the trade relations between both countries. I understand the Ceann Comhairle has an invitation to visit that country when he has an opportunity to do so.

The EU was Iran's main trading partner before sanctions were introduced in 2012. At that time, trade between the EU and Iran was €28 billion on an annual basis but it is now down to €6 billion. However, trade between Iran and China has risen to €40 billion on an annual basis and it is expected that within a short period of time, it will increase to €100 billion. There are obvious trade opportunities for all of us to try to maximise. It is important from the point of view of the Tánaiste's Department - the Department of Foreign Affairs and Trade - that we have the best possible diplomatic presence in the Middle East to assist many Irish companies which are doing business there and which want to increase their foot print there.

Eamon Gilmore (Dún Laoghaire, Labour)
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The sanctions were introduced in order to encourage Iran to participate in the talks on the nuclear issue. Participation in the talks is not just about being physically present at the talks but it is also about being fully engaged. Progress is being made. High Representative, Catherine Ashton, has briefed the Foreign Affairs Council on a number of occasions on her discussions and I want to express my support for the work she is doing.

Sanctions hurt not just the country against which they are targeted but they also hurt the countries applying them. I would like to see a situation where the sanctions can be lifted and where trade with Iran is normalised and grows again. The Deputy is right that is one of the contexts in which we will, in the future, consider the possibility of reopening a resident mission in Teheran and I hope we will be in a position to do that. As everybody knows, we had to cut our cloth to suit our measure in the past number of years as a result of the economic recession but now that we are coming out of the economic recession, it may be possible to consider the position of a mission in Teheran again.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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From High Representative Ashton's presentations to the Foreign Affairs Council, is there any belief that conditions are improving in Iran and that it is making the effort to enable the European Union to reduce sanctions and to improve the trading relationship between both blocs and obviously deal with other issues as well as trade?

Eamon Gilmore (Dún Laoghaire, Labour)
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After nine years of what can only be described as stonewalling by Iran, the willingness of the new government there to engage seriously has been very welcome. The interim plan of action, which was agreed in November, was an important achievement and created a context in which this long running issue can be resolved. The hard work of converting it into an agreement and settling this issue is now underway and negotiations are at a critical stage.

All I can say is that the Iranian side has continued to engage seriously and with a will to reach agreement but we do not yet know if Iran will be able to accept the essential compromises to reach an agreement and we know that the E3+3 side is very open to an agreement. We also know that there are elements in Iran which may be unwilling to reach an agreement, so we and our EU partners are doing what we can to encourage Iran to continue on the new course and to reach agreement.