Sinéad Gibney (Dublin Rathdown, Social Democrats)
Link to this: Individually | In context

2. To ask the Minister for Enterprise, Trade and Employment whether there are concerns in his Department regarding due diligence on the granting of licences for dual use goods, particularly in light of plans to expand Ireland's role in the dual use market, per the Action Plan on Competitiveness and Productivity; and if he will make a statement on the matter. [50822/25]

Sinéad Gibney (Dublin Rathdown, Social Democrats)
Link to this: Individually | In context

In the Action Plan on Competitiveness and Productivity the Minister outlines progressing the interests of Irish SMEs in the dual-use area, specifically citing defence research and development and the European Defence Fund. Is the Department equipped to deal with an increase in licence applications and the due diligence required to facilitate the dual-use licence system?

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

I thank Deputy Gibney for her question. The Department is the national competent authority with responsibility for the control of exports of dual-use and military items under EU and national legislation. The primary focus of export controls is not to block trade or exports but to enable the free movement of legitimate goods while ensuring that certain sensitive categories are subject to appropriate regulation. These controls are designed to manage risk, uphold international peace and security, and ensure Ireland's compliance with its international obligations.

The bulk of dual-use exports from Ireland are mainstream business ICT products, both hardware and software, including networking, data storage and cybersecurity. They are categorised as dual-use items as a consequence of fact that they incorporate strong encryption for ICT security purposes. All export licence applications are considered by departmental officials in accordance with criteria set out in the relevant dual-use and military EU and national regulations, and with Ireland’s international obligations and responsibilities as a member of non-proliferation regimes and export control arrangements. Each application is assessed individually, considering the nature of the items, the destination country, the identity of the end-user and the intended end use. The Department also consults with the Department of Foreign Affairs and Trade on each application.

Under the Action Plan on Competitiveness and Productivity, the Department of Defence has committed to continuing to progress the interests of Irish SMEs to facilitate growth and ensure deeper engagement in the commercial dual-use area, both nationally and at EU level. I understand from my colleague, an Tánaiste and Minister for Defence, that while his Department will look to develop a more structured approach to enhance engagement with Irish SMEs in the area of dual use, the methodology around this support is being developed.

Sinéad Gibney (Dublin Rathdown, Social Democrats)
Link to this: Individually | In context

I thank the Minister of State for the detail. My key concern in this area is that while the Department continues to emphasise dual use as, including perfectly legitimate ICT products, it also emphasises military applications and plans to extend this industry in Ireland. I welcome that applications are risk assessed but with this emphasis on military and defence applications of these goods there is a natural increase in risk and in the number of applications that need additional scrutiny to ensure the end use presented to authorities is appropriate and accurate.

Figures from the Minister of State's Department reveal that the value of these exports has trebled since 2021 and that the number of licences went up by 28%. How is the Department addressing the need to increase our regulatory capacity to ensure that Irish companies are not negligently or purposefully selling these dangerous goods, which can then be used to commit crimes such as those war crimes we are now seeing in Gaza and Ukraine?

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

I thank the Deputy for her question. I know she has raised this matter on a number of occasions before. I too take this risk incredibly seriously. I will speak to officials in the Department in detail in this regard.

The Department of Defence currently only facilitates Irish SMEs during their initial interaction with initiatives such as the European Defence Fund. This interaction is primarily administrative in nature, assisting entities to navigate the bureaucratic requirements associated with the collaborative EU programmes. My officials will continue to engage with current and potential exporters regarding their responsibilities under export control including via a webinar being hosted this morning to raise awareness among relevant stakeholders of their responsibilities under export control legislation. The bulk of dual-use producers from Ireland are, as I have said, mainstream businesses producing ICT products and so on. Their applications are assessed individually. The Department of Defence currently only facilitates Irish SMEs during their initial interaction with initiatives such as the European Defence Fund.

As I said at the outset, I take these risks incredibly seriously. I am keeping a very close eye on this and I am working collaboratively with the Minister for Defence on the issue.

Sinéad Gibney (Dublin Rathdown, Social Democrats)
Link to this: Individually | In context

I hope that is the case because, even in the previous answer to Deputy Conway-Walsh, we hear this emphasis on streamlining and making more efficient the administrative burden on businesses. However, this is a really serious area and one that needs to go in the other direction. In data released to me in answer to a parliamentary question, figures showed significant increases in the value and number of export licences granted since 2021. The Government's competitiveness plan indicates that the Government wants more dual-use products sold abroad by Irish companies, directly linking the productivity and competitiveness of Irish SMEs to funds for military research and development. Logically, that means more and riskier dual-use exports to be assessed for licences. How can any Department do more work and more complex work without additional resources allocated to ensure that everything is above board? When it comes to this conversation, we keep hearing about chips and ICT products but these goods can also be parts for drones such as those that are attacking humanitarian workers on the Sumud flotilla and civilians in Gaza right now. It is an incredibly serious topic and I and others need reassurance that the Minister of State's Department is taking its duties regarding this matter seriously.

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Applications for dual-use licences in respect of exports to any country are assessed on a case-by-case basis in line with the assessment criteria set out in the regulation and the eight criteria set out in the European Council Common Position 2008/944/CFSP defining common rules governing control of exports of military technology and equipment. In addition, my officials seek real-time geopolitical observations from the Department of Foreign Affairs and Trade in respect of any applications. These views inform the final decision to grant or deny a licence. The assessment process is rigorous. My officials carry out a series of checks to ensure, insofar as they can, that the item to be exported will be used by the stated end user for the stated end purpose and will not be used or diverted for any other purpose.