Seanad debates

Tuesday, 9 December 2014

Intellectual Property (Miscellaneous Provisions) Bill 2014: Second Stage

 

5:30 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael) | Oireachtas source

I thank all the Senators for their contributions and Senator White for her kind comments and for her support in the early part of my career, which was a major addition and pointed me in the right direction. That applies to my party colleagues as well.

This is an important Bill and we have had the opportunity to have a good engagement on it. On Thursday we will discuss any proposed amendments or changes. I will start with Senator Burke's contribution and work back through the others. I am surprised to hear that a proposal is not getting a proper hearing. It is something I will raise with my colleagues across the Departments because, as Senator Quinn said, if we are expecting private industry to research innovation and to use new products, ideas and processes, we should do the same ourselves in all Departments. As the Senator is probably aware, the Health Innovation Hub was set up in Cork and hopefully it will commence full operation in July 2015. That is a place where ideas can be brought and can be implemented in the Department of Health and the HSE. The proposal should get a hearing, so I will check it out. The innovation hub is the place to tease it out to see what is wrong and why it is not moving forward. Where possible we are trying not only to save money but also to give the patients a better service, which is what is outlined in that proposal. I will check it out because that is not good enough overall.

Some of the issues raised related to different Departments, including the Department of Health. Senator Quinn, in particular, raised a number of issues that are relevant to the Department of Health so I will refer them as well.

The amendment to the Patents Act is intended to cover the acts done here in order to obtain a marketing authorisation anywhere else. The work is done here but it will cover anywhere else as well. The patents are a form of intellectual property rights that reward innovation, which is the key, and reward what can be years of experience and research. These rights are only limited in certain circumstances, where there is a public interest. There was a worthwhile discussion on this in the Dáil. There is protection for the public interest and that is important.

The counterfeit drugs issue was raised. We had a long discussion on this and the black market in the committee as well. There is a difficulty with usage through the Internet.

We are looking at different things, like awareness campaigns, which seem to work quite well in the UK, to get the message out that dealing in counterfeit goods and black market products is not victimless. Apart from the health effects of using the products, there are a lot of losses including loss of jobs and finances for the State through taxes. The message that there are victims when it comes to the black market does not appear to be getting through. From talking with the pharmaceutical sector, I am very concerned about the influx of products being brought into the country. We have to do more in this area and I will raise this issue with the Department of Health. It is a concern and we should all be part of the solution.

I was asked if the "double Dutch" has affected our reputation. Clarity has been brought on what is going to happen. We were being drawn into a lot of debate, unnecessarily and unfairly. Tax evasion and tax avoidance are always going to happen. Companies are under strict competition and for whatever reason will try to legally avoid paying tax, as opposed to evasion. It is a global problem. There are different tax regimes in different countries and opportunities arise to do this. We have put to bed the concept of the "double Irish". We were innocent in this. We were getting drawn into the wrong debate, especially in the US. It puts the matter to bed and our reputation will not be damaged further, but it also brings great clarity. We have set out the scene up until 2020. Companies that have made decisions to locate here and have based themselves here have long-term plans. This is a long-term decision for them. They now know they have three or four years to get ready for this.

It does not seem to have affected the numbers of other companies looking to come to Ireland. In fact, the last two trade missions to America by the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, were quite positive, including the feedback on all of the issues relating to tax. More important, the reasons these companies are coming here is our intellectual property, IP, regime, our skills and the innovation of our people. The companies speak to us about the great passion the Irish have when it comes to research, innovation and development policies. We seem to stick out as a country in that regard. This reputation is helping us to win business. The focus has moved on from tax, the cost base and so on to what we can produce, as a people. Many companies are making definite decisions. They see both the previous Government and this one pumping money into the research agenda. This is feeding through the system. The research community and its ecosystem is being developed. Many new products, services and ideas are also being developed. Companies like this and want to locate here because of it. I am not concerned about the double Irish. I am glad it has been put to bed. A firm decision was made there and we can move on from it.

There are other solutions to the global tax problem. Companies should pay their fair share of tax. There is a duty on us all to act globally and to work with the base erosion and profit shifting, BEPS, process to try to rectify this to ensure everyone pays their fair share. Taxes are needed to run countries. During this debate, we have spoken about some people on the left claiming that all research should be carried out by the State and wanting to have no investment in it from anyone else. What we are trying to do as a country, and referring back to successive Governments, is build the relationship between taxpayers' money, the Government, the State and industry. We want to put the best money together to develop smart products and smart ideas.

Some people want the State not to impose taxes, not to have water charges, not to have any charges, yet they want the State to control everything. It does not add up. It is not possible to do all these things on one page. A person cannot own all the research if he or she has no money to pay for it in the first place. These same people do not have any solutions on how to raise money in this country. Their arguments do not add up when put on the one page. We are getting it right. This research agenda and this legislation will build and strengthen that community to make it easier to develop products and services in Ireland.

There were a few other issues mentioned that I can return to at a later stage and on Committee Stage. I will also contact the Senator directly with some answers as well.

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