Dáil debates
Tuesday, 28 July 2020
Saincheisteanna Tráthúla - Topical Issue Debate
Immigrant Investor Programme
11:45 pm
Barry Cowen (Laois-Offaly, Fianna Fail)
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I do not need to go over the ground already covered by me and others on the devastating impact of accelerated decarbonisation in the midlands region, particularly in my constituency of Laois-Offaly. Neither do I need to go over ground already covered by me and others relating to the subsequent specific needs of the region, which will be accommodated, we would expect, by just transition funds, climate action funds and the EU coal and peat regions in transition fund. I continue, as I did last week, to insist the main criteria associated with such targeted funding should, above all else, assist those areas that have suffered the most job losses. All of these programmes, of course, will seek to stimulate investment, create jobs and improve local social and economic well-being, and in doing so retain and attract people to live and work in the region.
As a public representative and Teachta Dála I continually, in so far as I can, try to assert my influence in attracting inward investment from the private sector. Over the past 12 to 18 months, I have worked with investors led by a Hong Kong national and an investment company to identify a site to progress a planning application for a meat processing plant at Banagher, County Offaly. From a planning perspective, the location at the site of Banagher Chilling, which was previously used as an abattoir, in addition to strict assessment by the planning department of Offaly County Council, which expects to make a decision in the coming days, has involved great cost and expense. The project offers a unique and welcome opportunity to create jobs in Offaly and provide direct access and routes to markets in Asia and increased competition in the beef industry, raising the potential to improve prices for producers, thus helping to boost incomes for farm families. All told, the project is an example of the alternative job prospects needed in Offaly and the midlands region in response to ongoing employment losses in Bord na Móna and the ESB.
Some of the investors involved in the project subsequently made applications under the immigrant investor programme, which is open to applicants who invest more than €1 million. This programme is described by the Government in its official records as an incentive for foreign investment into Ireland. It also states the benefit to the investor is an option of residency while the benefit to Ireland is investment in Ireland and further possible economic activity if resident in Ireland. However, to my utter dismay and disbelief an evaluation committee, made up it seems of senior officials from relevant Departments and some State agencies, has refused the first such application. The committee concluded, it would appear, that the proposed project is not an appropriate project for approval. The committee concluded the project does not align with Government policy on the beef processing industry, having regard to the fact it is not currently policy to pursue the development of additional plants where there is no established deficit in capacity.
I might have been the Minister for agriculture for only 17 days but one would hardly need a green certificate to recognise this conclusion in no way reflects the Irish farming sector's understanding of Government policy which has, for example, over the past ten years sought to open Asian markets, which this plant and project would exclusively supply. Beef and suckler farmers crave new markets and greater competition in the processing sector. Most of all, they crave opportunities, initiatives, programmes and Government policy that maintain and improve incomes for farm families. How then can a €40 million project, which has the approval of the State's planning authority, the co-operation of Offaly County Council, the support of the community in the region, the backing of beef farmers, the support of Bord Bia and the support of the Chinese Embassy, be subject to disapproval by an evaluation committee that oversees this scheme?
This project, it says, does not align with Government policy. Who is on this evaluation committee? Who supplied the reports that it sought and what was contained in them? Can they be made public by the committee so we can investigate further? Would it enlighten us as to where it is stated in Government policy there is no deficit in capacity? We need these answers and we need them fast if we are to secure and proceed with the realisation of 250 jobs in construction and 150 jobs in the plant's operation.
This investment is priceless and I am seeking resolution and approval of applications. It appears it is now a fact that an evaluation committee and its recommendations have the power to jeopardise multimillion investment in rural Ireland and in an area that is crying out for investment, stimulation and jobs to respond to the devastating impact of job losses in Bord na Móna. Can the Minister advise me what options are open for such new applications, or pending applications in this case, to ensure that every opportunity is given for this project to proceed?
11:55 pm
Helen McEntee (Meath East, Fine Gael)
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I thank the Deputy for raising this matter. He has raised a specific case with certain details on which, perhaps, I cannot respond directly to him now. However, it is important to outline what the process is in the immigrant investor programme, the type of investments and the role of the specific committee he referenced.
The immigrant investment programme, IIP, was introduced by the Government in 2012 to encourage inward investment from outside the EEA to avail of opportunities of investing and locating business interests in Ireland and acquiring a secure residency status for the investors and certain categories of family members in the State. Key to the programme is that the investments are beneficial to the State in pursuit of key strategic development objectives, that they generate or sustain employment and that they can demonstrate a clear public benefit.
The programme currently allows four different types of investment to be made by applicants, each with a minimum investment threshold: enterprise investments with a minimum threshold of €1 million; fund investments with a minimum threshold of €1 million; real estate investment trusts with a minimum investment threshold of €2 million; and endowments with a minimum threshold of €500,000. The immigration process that every applicant must go through is managed by the immigration service delivery function in my Department. The IIP team is multidisciplinary and includes experienced immigration officials and officials with a background in finance, which is extremely important in this area.
The applicant identifies the enterprise, fund or project that he or she wishes to invest in or to endow and submits an application to me as Minister for Justice and Equality for permission under the programme, without committing to any investment funding at that stage. The applicant is subject, when one is dealing with such sums of money, to rigorous screening by my Department as to the applicant's suitability for permission to enter into and reside in the State, to ensure only reputable individuals are eligible for permission. The enterprise, fund or project in which the applicant wishes to invest is subject to a detailed examination by an independent evaluation committee. The committee is chaired by the assistant secretary of the immigration service delivery function and comprises key officials from State agencies that have appropriate corporate experience in evaluating the nominated enterprise, fund or project. The agencies and bodies currently include Enterprise Ireland, the IDA, the Department of Foreign Affairs and Trade, the Department of Finance and my Department.
The evaluation committee convenes at least four times a year to assess the projects submitted for determination as suitable for IIP investment. Where necessary, and this is relevant to some of the Deputy's points, the evaluation committee will request policy input from the lead Department if that Department is not already represented on the committee. For example, there would be input from the Department of Housing, Planning and Local Government on social projects. More recently the IIP unit in the Department has also engaged proactively with other Departments such as the Department of Health, the Department of Communications, Climate Action and Environment, the Department of Culture, Heritage and the Gaeltacht and the Department of Agriculture, Food and the Marine to gain a full understanding of the projects in the wider context. Observations received from these Departments have aided the committee in its decision making. In addition, the evaluation committee has benefitted from briefing from Irish embassies in the key geographical areas.
If the committee deems the project suitable for funding under the programme a submission is made to me for final approval. If approved, the applicant makes the investment in accordance with his or her approved application and provides evidence of same. The applicant will then be issued with the IIP permission letter. The evaluation committee met in April and June this year by virtual meetings. While I cannot comment on this particular case, I can say there is a comprehensive system and structure in place. It has been established to ensure a proper appraisal and evaluation can be made in each case. That is why it has expanded out from my Department to seek the expertise and knowledge of the relevant Departments connected with the type of case.
Barry Cowen (Laois-Offaly, Fianna Fail)
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I thank the Minister for her response. I have no doubt, based on the information she has provided to the House tonight, that there may well be a comprehensive and detailed analysis and evaluation of applications and that information is sought from relevant Departments regarding such applications. I would expect in this case of a proposed meat plant, and I do not expect the Minister to discuss this case specifically, that the Department of Agriculture, Food and the Marine would have been consulted. I ask the Minister to make available to me, if possible, the various reports that were sought by the committee, what it sought, what was received and what was contained in what it received.
I have seen documentation pertaining to this case from officials in the Department of Agriculture, Food and the Marine and from the Chinese embassy and Bord Bia. Bord Bia says, for example, that this proposal is particularly opportune given that Ireland became the first European country to gain access to China earlier in 2018. Since then six Irish beef plants have been approved to export there by the Chinese veterinary authorities and Bord Bia says it is hoped that additional factories will become listed in the near future. This application, which I expect and hope will receive planning permission in the coming days, is exclusively dedicated and committed to serve the Asian market and others, which Bord Bia acknowledges it totally supports. Such a massive investment in my constituency, to the tune of €40 million, will provide 250 construction jobs and 150 jobs in its operation. I welcome the fact that Amazon created 1,000 jobs here recently, but this is the equivalent of that in a constituency or region that has been subject to huge job losses in recent times. I earnestly ask the Minister to make available the relevant documents pertaining to this application, in private if necessary, so we can scrutinise and analyse whether there was fair and due process in this case.
Helen McEntee (Meath East, Fine Gael)
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Again, I refer to the fact that it is only when the committee deems a project suitable for funding that the submission is made to me for final approval. What my Department must seek, and what I can benefit from, is the expertise that is available beyond my Department. That is why the structure is set up as it is. Obviously, the applicant is also subject to rigorous screening within my Department to examine the person's suitability for permission to enter and reside in the State. There is also an undertaking within my Department looking at detailed due diligence, politically exposed persons and sanctions, checks in respect of prospective applicants and accessing reputable international databases as and when required to ensure that only reputable individuals are eligible for permission. There is a vast amount of experience and knowledge coming from other Departments and from within my Department. It is only when all of that has been assessed that the final decision is brought to me, and I must base that decision on the expertise and knowledge that have been used in coming to that decision.
The investment should also be aligned with overarching Government policy. That is not to say, without knowing the details of this case, whether it is in line. However, at present, investment in social infrastructure, especially social housing and nursing homes, is a key priority as set out in Project Ireland 2040, but there are agricultural projects included in it as well. Applications are also assessed on the basis of the profile of the applicant, the commercial viability of the project, employment outcomes associated with the proposed investment and the overall benefit to the Irish State.
I can only assume that all this was taken into account when assessing this particular project.
As for the Deputy's questioning of the process, arising from an internal audit report completed in 2018, a recommendation was made that a strategic review of the IIP be undertaken. It was decided that this would happen in two phases. Following a public procurement process, EY was awarded the contract to undertake the review. The first phase was to consider and review the overall policy, the current objectives and future options. Following the outcome of phase 1, phase 2, which is currently under way, will consider governance and oversight arrangements for the process, the associated resource options and the risks, including financial and reputational, associated with the operation of the programmes. Again, this is under way, so if concerns are raised at that stage about the overall process, we hope to address them.
12:05 am
Catherine Connolly (Galway West, Independent)
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I thank the Minister.