Grace Boland (Dublin Fingal West, Fine Gael)
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727. To ask the Minister for Enterprise, Trade and Employment if he will outline the steps being taken to ensure that Ireland remains a global centre of excellence for aircraft leasing; and if he will make a statement on the matter. [47125/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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As the Deputy will appreciate, a range of factors are important for the future growth of the aircraft leasing sector in Ireland and maintaining its international competitiveness. Aircraft leasing is heavily tied to Ireland’s tax regime, international treaties, and financial regulation which are matters for my colleague, the Minister for Finance whose Department oversees the policy framework that has made Ireland a global leader in aviation finance and leasing.

In terms of my remit and recognising that the biggest lessors based in Ireland are often foreign owned, IDA Ireland plays a central role in attracting and supporting such leasing companies. In line with the Programme for Government, IDA’s strategic objectives include retaining the existing strong FDI base and strengthening long term investment. Through Government funding, the IDA provides investment support and incentives for companies looking to expand and develop strategic international operations in Ireland. This includes RD&I, employment grants, training and business assets grants.

Ireland has established a strong global reputation as an industry leader in Aviation Leasing and has proven to be a stable and resilient location to respond to and manage complex global acquisitions and restructuring deals, with strong talent available in relevant technical financial and legal disciplines. There are over 50 aircraft leasing companies based in Ireland, including 14 of the world's top 15 lessors with an aircraft leasing cluster developed around Dublin and Shannon. Aviation Leasing Ireland, the group representing the industry in Ireland, composed of C-suite executives from leasing companies with a presence here, estimates that the industry contributes over €897 million to the economy annually with over €100 billion assets, more than 60% of the world’s fleet of aircraft leased out of Ireland. In this regard, international confidence in Ireland is strong as a location for global leasing platforms. Ireland is well placed for medium term growth in the aviation leasing sector as leased global fleets will increase, as airlines continue to recover. Ireland offers an overall attractive operating environment for global lessors which is recognised internationally.

In recent years, officials in the Department of Finance and in Revenue carried out a substantive review of the taxation of leasing in Ireland. The review focused on the leasing of high value items, specifically in the aviation industry and involved significant engagement with stakeholders. Over the course of the review, a number of issues were identified with regard to the taxation of leasing of plant and machinery, and several were addressed in Finance (No.2) Act 2023 by way of amendments which created a clear legislative framework for the taxation of leasing. Following further engagement with stakeholders, amendments were included in Finance Act 2024 to further refine the framework for the taxation of leasing.

Government, with our agencies, is committed to pursuing policies that ensure Ireland continues to provide a supportive environment and remains a worldwide hub for aviation leasing and to working collaboratively with Aviation Leasing Ireland, to ensure Ireland retains its leading position in the aircraft leasing sector.