Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 53: To ask the Tánaiste and Minister for Foreign Affairs and Trade the reason Ireland is the only European State not to ratify the co-operation agreement of 26 October 2004 between the European Community and its member states, on the one part, and the Swiss Confederation on the other part, to combat fraud and any other illegal activity to the detriment of their financial interests. [27736/11]

Eamon Gilmore (Dún Laoghaire, Labour)
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In 2004, the EU and Switzerland signed a Cooperation Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other part, to combat fraud and any other illegal activity to the detriment of their financial interests. The Agreement provides for comprehensive cooperation between European and Swiss administrative and justice authorities by way of administrative and mutual assistance. The scope of the Agreement covers indirect tax (VAT and excise duties) and customs offences (including smuggling), corruption and money laundering. As a mixed agreement, it must be approved and ratified by the European Union and its Member States. It will enter into force one month after the last notification of instruments of ratification or approval is received. However, pending its entry into force any Contracting Party may at any time declare that it shall be bound by the Agreement in its relations with any other Contracting Party having made the same declaration. Thus, implementation of the terms of the Agreement need not be held up pending its ratification.

The Department of Justice and Law Reform is responsible for ensuring that constitutional and legislative requirements have been fulfilled in order that Ireland may ratify the Agreement. Ratification of the Agreement by Ireland has been delayed because not all of the domestic legislation that is required is yet in place. Some of the legislative requirements were provided for in the Criminal Justice (Mutual Assistance) Act 2008. The Office of the Attorney General has advised the Department of Justice and Law Reform that specific statutory measures are also needed to deal with the provisions in the Agreement concerning mutual assistance for the recovery of claims relating to certain levies, duties, taxes and other measures. It is proposed that the statutory measures in question will be included in a Bill that is currently being drafted by the Office of the Revenue Commissioners to enable Ireland to comply with its obligations under the OECD Convention on Mutual Administrative Assistance in Tax Matters. It is expected that draft legislative proposals will be submitted to the Oireachtas early in the New Year. Once this legislation is in place, the Department of Justice and Law Reform will then be in a position to ask the Department of Foreign Affairs and Trade to seek Government approval to enable Ireland to ratify the Agreement.