Dáil debates

Tuesday, 10 February 2015

Ceisteanna - Questions (Resumed)

Official Engagements

4:35 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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2. To ask the Taoiseach the position regarding his meeting with the ambassador of the United States of America to Ireland; and if he will make a statement on the matter. [40967/14]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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3. To ask the Taoiseach if he will report on his meeting with the ambassador of the United States of America; and if he will make a statement on the matter. [43809/14]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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4. To ask the Taoiseach if he will report on his meeting with the ambassador of the United States of America to Ireland. [43819/14]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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5. To ask the Taoiseach if he will report on his recent visit to New York and the economic events designed to increase jobs and investment here. [44902/14]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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6. To ask the Taoiseach if he will report on his recent trip to the United States of America in November, 2014; and if he will make a statement on the matter. [45778/14]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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7. To ask the Taoiseach if he met any Government representatives on his recent trip to the United States of America in November 2014; and if he will make a statement on the matter. [45779/14]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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8. To ask the Taoiseach if he will report on his visit to New York in November 2014; and if he will make a statement on the matter. [2150/15]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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9. To ask the Taoiseach if he met with any of the Irish immigration lobby groups while in New York; and if he will make a statement on the matter. [2151/15]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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10. To ask the Taoiseach if he will report on his letter to President Obama on immigration reform; and if he will make a statement on the matter. [2152/15]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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11. To ask the Taoiseach if he will report on the meetings he attended during his visit to New York in November 2014; and if he will make a statement on the matter. [4355/15]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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12. To ask the Taoiseach if he discussed Ireland's corporate tax rate at any of his meetings in New York; and if he will make a statement on the matter. [4356/15]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 2 to 12, inclusive, together.

I have had a number of recent engagements in support of Ireland's relationship with the United States of America. I met with the new ambassador, Mr. Kevin O'Malley, on Friday, 10 October, in Government Buildings. I welcomed Mr. O'Malley to Ireland and congratulated him on his appointment. The ambassador told me he was looking forward to his term and spoke warmly of the overwhelming welcome and support he had received since arriving in Ireland.

Our discussions were wide-ranging. We discussed the excellent relationship between Ireland and the US, acknowledging the strength of economic, personal and political ties. We recalled the successful visits by President and Mrs. Obama and my own visits to the United States. We discussed the economic situation in Ireland and Europe, and the ambassador was complimentary about the remarkable progress made by our country in recent years. We spoke about the Transatlantic Trade and Investment Partnership, recalling that a negotiation mandate was secured during Ireland's Presidency of the Council of the European Union, and discussed the potential for increased investment, trade and job creation on both sides of the Atlantic. I also briefed the ambassador on the latest state of play in Northern Ireland and the all-party talks that were, at the time of the meeting, proposed by the British and Irish Governments.

The subject of US immigration reform has been a key priority for the Government and a constant element in our discussions with the American Administration. While I did not have occasion to meet any of the immigration lobby groups during my brief visit to New York in November, I took the opportunity to raise the issue with the ambassador, Mr. O'Malley, and to emphasise the importance of people's ability to move freely between the US and Ireland.

Since that meeting, as Deputies are aware, President Obama announced some welcome changes to the US immigration system, which represents a strong start on immigration reform. These changes should benefit a significant number of our own citizens. For those covered, it promises to lift the threat of deportation and should allow them to work and travel more freely within the United States. I followed up on President Obama's announcement by writing to him to welcome this development and to ask that the arrangements be as open and as flexible as possible in order to protect the undocumented Irish in the United States.

I must stress, however, that, while this is a good start, our work is not yet done. The President has acted within his own powers, but legislation in Congress is still needed to build on what has been achieved in the President's announcement. For that reason, the Government and our embassy in Washington have been working and will continue to work with the Administration and with both Republican and Democratic political leaders. We have strong contacts across both sides and we will continue to build on this particular network.

I visited New York in November with a programme focused on boosting trade, investment and job creation. In engaging with business groups and companies, I highlighted a number of key messages, including Ireland's strong economic recovery, our advantages as a place to invest and to do business, the strong offering of Irish exporting companies and the Government's roadmap for Ireland's tax competitiveness. My engagements included a round-table event at the New York Stock Exchange with the CEOs of a number of leading international financial services companies. I spoke about Ireland's continued economic recovery, our strengths as a location for investment and the new international financial services strategy currently being prepared by the Minister of State, Deputy Harris. While at the New York Stock Exchange, I also had the opportunity to meet its new CEO, Mr. Thomas Farley, and was pleased to be invited to ring the opening bell that morning. I met again with Mr. Farley during the World Economic Forum in Davos last month.

I also attended a meeting with members of the Partnership for New York City, a membership organisation made up of CEOs of leading businesses with headquarters in New York. This was a follow-on to my previous meeting with members of the partnership earlier last year. Again, I spoke about the strengths of Ireland's economy and Ireland's excellence as a location for investment, as well as our new roadmap for Ireland's tax competitiveness.

During my visit, I attended a dinner event hosted by the Ireland-US Council, attended by a range of leading US and Irish business leaders, where I highlighted Ireland's progress towards economic recovery and its many advantages as a location for business, investment, tourism and high-quality goods and services. I was pleased to have a follow-up meeting with Bristol-Myers Squibb at which it confirmed its major new investment in Ireland, involving about 1,000 construction jobs while the facility is being built and then up to 400 permanent high-tech jobs in the pharma sector. I also availed of the opportunity to visit North Shore-LIJ Health System's new state-of-the-art health care facility, the Lenox Hill HealthPlex, and meet with North Shore's president and CEO, Mr. Michael Dowling, and some of his senior colleagues. As Deputies will be aware, Mr. Dowling is a native of Limerick and maintains a close interest in developments here in Ireland. While at Lenox Hill, I chaired a round table with North Shore, representatives of the Visiting Nurse Association and Enterprise Ireland, EI, client companies with a view to building the necessary links and expertise amongst the EI companies to supply goods and services to the health care market in the US.

Overall, while it was a brief visit to New York, my programme covered a wide range of business engagements aimed at promoting Ireland's continued attractiveness as a business location and helping Irish companies to pursue further business opportunities in the US.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I welcome the Taoiseach's reply, particularly regarding immigration. I met the ambassador as well. He is energetic and will be a constructive voice in enhancing and nurturing relationships between our two countries.

This is our first occasion to question the Taoiseach on President Obama's announcement on immigration. The President's actions are welcome, but they do not include everything that we want to be in a proper programme. There are still thousands of undocumented Irish out there. There are also still issues with the level of certainty around President Obama's policies and his relationship with Congress. There are challenges with regard to whether Congress will approve those policies or go further in terms of a comprehensive immigration Bill. People believed that could happen two years ago, but it does not look as though it will happen now, before a presidential election.

President Obama's statement has implications concerning people returning home and those with a particular status in the United States. We are concerned by utterances from some members of the US Congress who say they will undo much of what President Obama has announced. Is our lobbying and diplomacy focused on members of Congress to at least get commitments that they will not roll back on what President Obama has announced? That is important in order to have certainty about our undocumented. If what President Obama has said was allowed to prevail, that, in itself, would give some certainty to the undocumented in the United States. The fact that some members of Congress are suggesting otherwise is a worry. I ask the Taoiseach to assess that issue.

I do not think the Taoiseach mentioned the tax situation. We know that tens of thousands of people in Ireland rely on jobs that are directly provided by American investment and US multinational companies. Many of them use tax schemes which are entirely legal and in line with practices found in many other countries. In the budget, the Taoiseach announced a move to a new system concerning a particular dimension of the global tax situation. What measures does the Taoiseach intend to take to provide long-term certainty on tax matters to investors in Ireland? Long-term certainty is the key issue on tax matters. Will the Taoiseach be raising that matter when he is next in Washington?

The European Parliament and other European institutions are beginning to single out individual American companies and employers for attack. For example, a recent vote by the European Parliament calling for the break-up of Google is naked populism but it could have a serious impact on jobs here and elsewhere across Europe. Unfortunately, Sinn Féin and the far left had no problem with that motion, which is directly damaging to Ireland's interests. Does the Taoiseach and his Government talk with all our MEPs, irrespective of party affiliation, about the national interest regarding issues that emerge in the European Parliament from to time? Will he take steps to assure Google and other important investors that Ireland will stand against such damaging grandstanding in Europe?

As regards the forthcoming events in America in March, other parties, including Sinn Féin, will be out there also. One of the most remarkable things is how Sinn Féin never mentions any of its domestic policies when its representatives fly across the Atlantic. That is probably because they know their policies would horrify most of the people they are trying to raise money from. Perhaps this year the Government might find an opportunity for Deputy Adams to explain Sinn Féin's policy of attacking the United States as being co-responsible for Russia's invasion and brutalisation of Ukraine. That is an important issue which has gone unnoticed in the public domain. The Taoiseach might be kind enough to print off the speeches of Sinn Féin Deputies and MEPs and make them widely available in Washington.

4:45 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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We do that already.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I do not think you do.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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We are running short of time now.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Two individuals, John Hume and Seamus Mallon, have been outstanding in their support for peace over many decades. In the early days, they pioneered the engagement with the United States to develop a broad consensus in Congress, including key personnel who were then influential in American policy and thus influential for the peace process. They are two of our greatest heroes for peace. They stood against all sides and never compromised on their commitment to human rights, dignity and equality for all. Something official should be done to acknowledge their work. I am conscious that has happened in Washington in recent times as, for example, people have been honoured by the Ireland Fund. Would the Taoiseach consider that his visit to Washington might be a good opportunity to announce something in particular to acknowledge the work of two great constitutionalists, John Hume and Seamus Mallon?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I ask everybody to be conscious of the clock. We only have fourteen and a half minutes left and there are three other Deputies waiting to contribute.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Deputy Martin has raised a number of important issues and I will refer to some of them. Clearly, the question of emigration has been a source of activity by all governments in recent years. It will be a real priority for this Government as we continue our discussions with and through the new US ambassador, Mr. O'Malley. The establishment of an E3 visa is an outstanding issue which we must continue to discuss.

The propositions made by President Obama last November should benefit thousands of undocumented Irish in the US. Under those proposals, undocumented immigrants who have been in the US for more than five years, or who have children who are US citizens, or legal residents who register, undergo background checks and pay their taxes, will be given temporary legal status and protected from deportation. President Obama made the point that they were after criminals in the US. We know that the vast majority of people there from our own country pay their taxes and social security. Many of them have raised their families in that context.

A number of further possibilities are being considered by the US Congress, but the President's announcement is a welcome step in the right direction. I have listened carefully to the Republican Party, which now controls both Houses of Congress, and clearly there are implications concerning exactly what it wants to do. I hope it will proceed to build on the announcement that has been made by President Obama. As Deputy Martin pointed out, there are differing voices but we consider President Obama's announcement as being entirely within his remit and a positive direction for Ireland. I would like to see that being built upon. I intend to raise this matter with US representatives when I have the opportunity to travel to Washington in March.

We are aware of President Obama's latest tax proposals. The Government abolished the stateless concept in 2013 and we abolished the double Irish in 2014. We are fully compliant in participating in the OECD's base erosion and profit shifting, or BEPS, analysis for providing an international response to the tax situation. It is not yet known what the implications will be of action by the Republican-controlled House of Representatives and Senate in respect of President Obama's statements on tax.

As regards what President Tusk and President Juncker said the other day, Ireland will continue to have a 12.5% corporation tax rate into the very distant future. We are not changing that, up or down. Under the EU treaties, taxation is a matter of national competence. That statement is important for would-be investors and those who have already invested here. The Minister for Finance, Deputy Noonan, has clarified that the double Irish will be replaced, in addition to considering the introduction of an information patent box here in Ireland. We have made it clear that this country does not support the harmonisation of taxes.

As regards companies being challenged by the European Commission, there is one major company here in Ireland, but that now it is being extended to all of the countries in Europe. The Government is clear that, over the years, nothing untoward was carried out by the Revenue Commissioners in respect of any of these companies. We are prepared to defend that right through the courts, if necessary. That is where we are in respect of taxation issues.

Deputy Martin's point about two sons of Ulster, Seamus Mallon and John Hume, should certainly be considered and I will examine that. Both men are outstanding examples of people who are unafraid to stand up for human rights, equality, dignity and political progress with peace in Northern Ireland. I will consider that.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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I know we do not have much time and I have four questions. However, I want to assure Teachta Martin that Irish America knows Sinn Féin's policies. It is clear that we receive our support there, despite some of them disagreeing with our policies.

We receive support because we have a united Ireland strategy and a peace strategy, both of which we are working, and because most of the Irish in America are there as a result of the punitive austerity policies pursued by the previous Fianna Fáil-led Administration and the current Government.

We all know the many links between Ireland and the US. Those links were very clear during the recent negotiations which took place at Stormont House. I commend President Obama's envoy, former Senator Gary Hart, who was regularly in contact and who offered his support and advice. I thank him for that. I was also in contact with Meghan O'Sullivan and Richard Haass, who provided the template for what was eventually agreed at Stormont. I met Ambassador O'Malley during the negotiation period and I thank him for his support. I especially wish to commend the US Consul General, Greg Burton, who is soon to leave his position but who was omnipresent during the talks. There is still a great deal of work to be done. Teachta Martin made no mention of the threat made once again against the life of the Deputy First Minister by so-called dissident elements. That threat shows that we cannot take the peace process for granted. We continue to work to make it a reality for more and more people.

The questions tabled in my name relate to those who are in America illegally, particularly in the context of the initiative taken by the US President, which was broadly welcomed by most Irish American groups. The Taoiseach is aware of Ciaran Staunton and his work on behalf of the undocumented. I take this opportunity to commend our ambassador to America, Anne Anderson, and her consular staff on their work in this area. After President Obama made his announcement, the Taoiseach wrote to him stating that there would be some capacity for the undocumented Irish to travel home and that the full details of this would be worked out. Will he indicate if those details have been worked out? What resources are being provided by the Department of Foreign Affairs and Trade and our diplomatic service to assist those who might potentially benefit from President Obama's executive order. The Taoiseach alluded to the fear that an executive order made by one US President might be reversed by another. I must note at this point that there are others who fall outside the scope of this new arrangement. Will the Taoiseach be raising this issue - if God spares him - when he returns to the United States in March? Will he raise it with Republican leaders as well as with President Obama? I witnessed his very forthright push for citizenship for Irish people there and for legal rights for them. Will he continue to press the White House for a more comprehensive and bipartisan legislative Bill which would give the undocumented a path towards citizenship?

4:55 pm

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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In light of the time constraints, I ask that the two remaining Deputies put their questions now.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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I will deal with just one of the huge number of issues that arise. Was the Taoiseach asked in any detail about the controversy with regard to Irish corporation tax policy or about the race to the bottom throughout Europe in respect of corporation tax, which this and previous Governments have championed? Did any civil society organisations or others raise this issue with the Taoiseach? Earlier, the Taoiseach referred to the abolition of the "double Irish" tax scam. Did he advise anyone who asked him that this mechanism will remain in place for another five years for all the major corporations which have scandalously availed of it in order to legally avoid paying tax? As with St. Augustine, it is a question of hankering after purity but not quite yet, as far as taxation policies relating to big business are concerned. Is the Taoiseach aware that non-governmental organisations such as Christian Aid that are heavily involved in poor countries have outlined the damage done by what the he describes as tax competitiveness but what is, in fact, a mechanism to allow massive global corporations to avoid paying billions in taxation? The tax in question should be used for social good and social investment but the Government's policies prevent that.

Is it not incredible that the leader of the biggest Opposition party in this Parliament has chosen to weigh in to this debate in order to bolster the giant multinational corporations to which I refer? For example, he mentioned Google and Apple. The latter made a profit of €18 billion in one quarter of last year. However, the Deputy in question did not have a word to say about the Garda's dawn raids on the homes of ordinary activists and public representatives who are fighting injustice and austerity. Was the Taoiseach aware that gardaí were going to be sent to the homes of public representatives and anti-water-charge activists?

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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In his initial reply, the Taoiseach indicated that he had met a litany of CEOs of large corporations in New York. He referred on two occasions to what he calls the roadmap to tax competitiveness in Ireland and stated that he had encouraged the corporations in question to invest here as a result of that competitiveness. There have been widespread reports of the Government conferring with multinationals in order to reassure them that the changes to the double Irish tax arrangement will not impact on the amount of tax they pay. Is evidence not piling up to the effect that the policy of this and previous Governments has been to act - to some degree and in a pretty shameful way - as the corporate tax prostitute of Europe, particularly when it comes to attracting investment from the United States? A report in the business section of today's edition of The Irish Timesindicates that the high-powered barrister the Government has hired to defend Ireland in the context of the European Commission's investigation into Apple's tax affairs and the possible state aid extended to or special arrangements made for it by the Government has gone on record in the past month implying that the new knowledge box arrangement with which the double Irish will be replaced may be found to be very problematic. The individual in question apparently indicated that the knowledge box may constitute further state aid and may not involve a proper imposition of tax on the corporate sector. Even people the Government is hiring have stated that something about the Irish corporate tax regime stinks. That regime allows multinationals to literally get away with murder when it comes to corporate tax.

Does the Taoiseach communicate with the American Administration in respect of the fact that it is considering pouring fuel on the fire of the dire conflict in Ukraine by discussing the possibility of providing arms to one side, thereby inflaming an absolutely disastrous situation? What does the Taoiseach think of the proposal to supply arms? Would he join some of us in stating that it would be a disastrous move - and would make the situation even worse - for the United States to pour arms into what is an already dire conflict?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Deputy Adams raised a number of points. I am not going to become involved in any controversy involving him and the party whose Deputies are seated to his left.

I will raise the issue of the undocumented Irish with Republican leaders when I return to the United States. Ambassador O'Malley understands the position of illegal Irish immigrants in the US. He also understands perfectly that for Irish people the ability to travel home and back to the United States while their undocumented status is changed is of critical importance. We will continue to press the White House in respect of this matter.

Deputy Higgins referred to tax.

We did abolish the concepts of stateless companies and the double Irish. There were perceptions of Ireland being a tax haven. These perceptions are completely unfounded. Clarity now exists for the period to 2020.

I did not know of anything to do the activities of the Garda in so far as a Member of the House is concerned. It is an entirely independent operational matter for the Garda.

5:05 pm

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Does the Taoiseach condemn it as over the top and heavy-handed?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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With regard to Deputy Boyd Barrett's point about my meetings in New York, we have spoken to many of the chief executives and have given them a very clear understanding that our corporate tax rate will continue at 12.5%-----

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Six and a half percent.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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-----and of our opposition to tax harmonisation, and our defence of the position in so far as the company being investigated by the European Commission in Ireland is now concerned. It is now investigating the tax practices in all 28 countries. We are very clear that, over the years, there was no untoward activity in so far as state aid for any company was concerned. The knowledge box that we are now considering is one in respect of which we will continue to play hard and fair in respect of winning. We expect the rate will be competitive and Ireland will continue to be a very attractive location for investment. As Deputy Boyd Barrett knows, we can pride ourselves on our tax and technology positions and our track record, and mostly in respect of the talent of our young people to meet all the challenges.

The answer to the question on Ukraine is that it is a matter for discussion on Thursday. The agenda for the European Council meeting concerns terrorism, Ukraine and the EMU. These matters will be discussed in some detail.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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The Government is going to stab the Greek people in the back. That is shameful.

Written Answers follow Adjournment.