Written answers

Tuesday, 28 May 2013

Department of Jobs, Enterprise and Innovation

Foreign Direct Investment

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

333. To ask the Minister for Jobs, Enterprise and Innovation if a representative of his Department or the Industrial Development Agency have advised or provided information on the establishment or benefits of non-residential holding companies to perspective foreign direct investment companies; and if he detail any such advice or information. [25938/13]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

334. To ask the Minister for Jobs, Enterprise and Innovation the advice given to foreign direct investment companies regarding the establishment of non-trading non-residential holding companies. [25939/13]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

337. To ask the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency client companies that are whole or part subsidiaries of Irish registered non-residential holding companies. [25942/13]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

338. To ask the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency client companies that are Irish registered non-residential holding companies. [25943/13]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

340. To ask the Minister for Jobs, Enterprise and Innovation the number of inquires from Industrial Development Agency client companies with regard to tax reduction; and to outline how these enquiries are handled. [25945/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 333, 334, 337, 338 and 340 together.

IDA Ireland is the agency with statutory responsibility for the attraction of foreign direct investment (FDI) to Ireland and its regions. In executing its mandate, IDA Ireland engages with corporate entities, as the primary decision makers around FDI investment. The Agency’s key focus is on maximising the level of economic activity and substance in Ireland from these corporations.

IDA Ireland markets Ireland as a location for FDI on the basis of a number of selling points: a pro-business and technologically advanced environment; the availability of an educated and talented workforce with the blend of appropriate skill sets; a range of affordable, state-of-the-art property solutions; the availability of world class access infrastructure, for example, road access to key cities and ports and international airports; and an attractive corporate tax rate. IDA Ireland is a marketing organisation not a tax advisory body. In the course of its engagement with client companies, IDA Ireland provides general information to companies on the Irish tax regime while companies and their financial advisors engage separately and directly with the Revenue Commissioners, as required.

I wish to reiterate that Ireland is not a tax haven. Since the 1950s, there has been a consistent Government policy to use a competitive corporation tax rate as a means to attract investment and jobs to Ireland. A deliberate decision has been taken by successive Governments to ensure that our tax system is transparent and our competitive rate is applied to a wider tax base. I understand from my colleague the Minister for Finance that he has been advised by the Revenue Commissioners that the number of companies and the names of same that are incorporated here but non-resident for tax purposes are not available as they are not separately compiled.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

335. To ask the Minister for Jobs, Enterprise and Innovation the value of supports made available to Google and Apple from the Industrial Development Agency. [25940/13]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

336. To ask the Minister for Jobs, Enterprise and Innovation the value of supports made available to Apple Sales International from the Industrial Development Agency. [25941/13]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

339. To ask the Minister for Jobs, Enterprise and Innovation the advice offered to companies in the Apple group with regard to tax measures by the Industrial Development Agency or if they were referred to the Revenue Commissioners. [25944/13]

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

341. To ask the Minister for Jobs, Enterprise and Innovation the meetings between Industrial Development Agency officials and representatives or directors of Apple Operations Ireland or Apple Sales International. [25946/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 335, 336, 339 and 341 together.

Since establishing in Ireland in 2003, Google Ireland Limited was paid €7,500,000 in grant assistance from IDA Ireland. That company employs over 2,500 staff in this country. In the 33 years since establishing in Ireland, Apple’s entire operation has been paid €17,854,407 in grant assistance from IDA Ireland in support of its major corporate activities in Cork. That company employs approximately 4,000 staff in Ireland.

Given the number of employees working in each company in Ireland, if all were just earning the average wage then the tax revenue for the Exchequer each year would be of the order of €6,400 per worker in PAYE and USC payments or €41m per year in aggregate. This figure is likely to be much larger as staff at both these companies would likely be earning above the average wage.

In the course of its engagement with client companies, IDA Ireland provides general information to companies on the Irish tax regime. However the IDA is not a tax advisory body. Obviously companies and their financial advisors engage separately and directly with the Revenue Commissioners as required. IDA Ireland engages with corporate entities, as the primary decision makers around FDI investment. The Agency’s key focus is on maximising the level of economic activity and substance in Ireland from these corporations. Large companies generally have a significant number of subsidiaries within their overall corporate structure.

In relation to Apple, IDA Ireland’s engagement in the past 30 years is has been with Apple Corporate and with its Irish operation in Cork. Over this period, the Agency has met with Apple frequently in relation to the execution of its mandate. Distinctions would not normally be made as to whether or not specific subsidiaries might be involved in particular meetings.

Comments

No comments

Log in or join to post a public comment.