Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 25: To ask the Minister for Foreign Affairs the discussions which have taken place with the US authorities on plans for corporation tax; and if he will make a statement on the matter. [14476/09]

Micheál Martin (Cork South Central, Fianna Fail)
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The Embassy in Washington, in close co-ordination with the state agencies, has been monitoring all proposals for policy initiatives, under the new Administration, which could potentially impact on the Irish economy. The Embassy has been engaging with US policy makers on relevant issues as they arise. These include proposals in relation to taxation.

One important issue in this regard is proposals to make changes to the current 'deferral' system for US international corporation tax. We wish to make sure that our very positive experience of substantive investment by US companies competing globally using Ireland as a base feeds into consideration of these issues by the Administration and Congress.

The Taoiseach and I made this a strong theme of our meetings with relevant policy makers during our visit to Washington on St Patrick's Day. The Taoiseach raised the specific issues of potential changes to US tax policy with President Obama. I also raised the issue with Secretary Clinton, emphasising the strong and very mutually beneficial economic partnership facilitated by the current tax framework. It was also the subject of discussion with key members of Congress with whom we met during our visit.

The Tánaiste has also just returned from a visit to Washington DC where she addressed these issues with the Administration and relevant members of Congress. The Embassy in Washington, working in full co-operation with the IDA, will continue to monitor these issues very closely as they develop during this session of Congress.