Ivor Callely (Fianna Fail)

The Bill is relatively short and I understand it covers two different issues. One is the US GAAP, the transitional accounting standards and regulations. From listening to the Minister of State, the provision will allow companies that relocate parent companies to Ireland to continue for a limited period to draw up group accounts and individual parent company accounts using the US accounting standards. This is a question posed by Senator Donohoe. The period is four years for each beneficiary company, with an end date of December 2015. Companies incorporated in Ireland were heretofore expected to use Irish or international financial reporting standards. The legislation also includes provision for the Minister to make regulations, if appropriate, for the same category of companies using other internationally recognised accounting procedures and standards. I do not see any great difficulty with this measure. Listening to the Minister of State, everyone will sign up to the importance of attracting foreign direct investment. The Minister of State mentions that we cannot afford to miss out on these possibilities or we may lose investment to other destinations. If this tool will assist us to attract, integrate and retain foreign investment projects in Ireland, it is a welcome move and one to which we all sign up. The legislation is designed to facilitate companies with certain operations in Ireland to add activities and substance to these operations. This will contribute to additional economic activity here and, it is hoped, provide valuable employment opportunities.

Most of the companies that will avail of this mechanism already have substantial investment in Ireland. Perhaps the Minister of State can indicate the level of this investment and the benefit that accrues from it, such as employment and participation in our export and import markets. Perhaps he can indicate also the expected target market that will follow from this measure. Most of these companies are listed on US stock exchanges and report to the US Securities and Exchange Commission. They will have to continue to prepare US accounts to remain compliant in the US. In addition to that procedure, as Irish registered companies they will have to prepare Irish accounts. This is where standards followed by companies in this State are generally accepted accounting practices, known as Irish GAAP, or international financial reporting standards adopted by the EU.

This is a lot of technical change to accommodate continued investment and that is why it is important for the Minister of State to clarify the current levels and the likely benefits that will accrue. He could clarify whether a particular group of people or companies sought this measure. If so, how was this brought to the attention of the Department of Enterprise, Trade and Employment? What will be the likely cost to Revenue? The Minister of State referred to the Director of Corporate Enforcement and costs in that regard but I refer to the bigger picture.

The Minister of State asked for urgent accommodation of the Bill and asked if we could finalise a framework that would not delay its enactment. I hope the House will give the Minister of State a green light on this matter. We will accommodate this Bill which will be on Committee, Report and Final Stages in the House on Wednesday. I am pleased to indicate that Members on this side of the House will accommodate this.

We are all under pressure at the moment. Internationally, Ireland is under pressure and the issue of competitiveness is critical. When we have the opportunity to do so, we should do what we can to assist in attracting foreign investment, especially in respect of the transatlantic benefit Ireland has enjoyed for a considerable period of time, although perhaps not as much over the past eight years as we did before. The US and Ireland have a special relationship and most leaders of America have encouraged and developed the special relationship. It is interesting to note that the current US President, Barack Obama, has tapped into his Irish roots which happen to be in the same county as the Taoiseach. Arising from that special relationship with the US, it is appropriate that we try to accommodate the US in whatever way we can to develop the relationship and tap into the investment potential.

I am a little concerned that, in the current economic and financial climate where we are under pressure, we have seen individual states respond to their needs in a particular fashion. We hear about trillions of dollars going into a particular industry in the US and figures for some European Union member states with which Ireland cannot compete. Senator Donohoe referred to global accounting practices but I would like to see a partnership approach to the transatlantic response to the current financial and economic difficulty. I say this because the representatives of the Department of Enterprise, Trade and Employment are present. Ireland should avail of the special relationship that exists between the US and Ireland. There is a great opportunity to have a transatlantic response.

Regarding the second unconnected issue, we are limiting the potential exposure of the Exchequer to costs of certain court-appointed investigations into the affairs of companies. This relates to the Companies Act 1990 which provides that a variety of prescribed interested parties can petition the High Court to have inspectors appointed to investigate the affairs of the company. At present, there is an upper limit on the amount that the applicants for such an appointment can be required to pay towards these costs by way of security that can be demanded in advance of the investigation or by way of the applicants having to bear the eventual cost of the investigation. I understand the Bill provides for the removal of the statutory absolute limit on the costs applicable to applicants. This would leave the courts with total discretion on costs and would place applicants on the same general footing as other parties.