I move:
That Dáil Éireann approves the terms of the Agreement between the United States and Ireland relating to the development of technology-based joint projects between small and medium-sized companies which was laid before the Dáil on 8 December 1988.
The approval of Dáil Éireann is necessary as the Agreement will give rise to a modest element of charge upon public funds of an administrative nature within the meaning of Article 29.5.2 of the Constitution. As this Agreement is to come into effect on signature by both parties this House's approval is necessary now before such signature.
The purpose of the Agreement is to provide a framework to encourage further joint ventures and projects between US and Irish firms. Most of the 343 US firms now producing goods and services in Ireland operate as wholly-owned subsidiaries. Their US parents are usually large firms with a network of other such subsidiaries elsewhere in the world. Few involve joint ventures or projects with Irish partners. This Agreement provides a means in the future to increase the number involving Irish partners. It is particularly aimed at smaller and medium-sized US firms who have yet to develop significant overseas operations. As 1992 looms ever nearer, the IDA see particular potential for promoting joint venture projects geared to European markets involving small and mediumsized US firms. There are many such firms with no overseas investment which would benefit from a European presence. For some years now, the IDA's partnership programme has marketed the joint venture approach in the US and further afield. The Agreement before the House today should facilitate these IDA efforts in several respects in the US case.
The text of the Agreement was laid before the House on 8 December 1988. Article I commits the parties to help in the formation of joint projects. Article II provides for a framework to find partners and funding for partnership projects. The key element of this framework is provided for in Article III. An executive officer is to be appointed to manage the programme. He or she will be pivotal to the success of the Agreement. To emphasise the complementarity with the IDA and, indeed, to avoid creating new overheads, it has been agreed that the officer will be existing IDA staff member who will be assigned to this role.
Article IV provides for a designated US Department of Commerce official based in Washington to liaise with the executive officer. This official will identify candidate US firms and seek out commercial funding sources for joint projects. This official will work closely with the executive officer in Dublin. This active assistance by the US authorities in locating candidate firms and also in helping US firms to locate funding within the US for their Irish projects are two significant new features of benefit to the existing IDA operation which I draw to the House's attention.
Article V provides for the executive officer and the US Commerce Department official to work together to elaborate the mechanisms required to implement the Agreement. It also provides that both parties cover their own costs: I will return to that point later. A joint advisory committee, provided for in Article VI, will advise on general policy matters. This committee will comprise leading private sector figures and Government officials from Ireland and the US. I will be giving careful attention to the composition of this committee in the near future. The closing articles, seven and eight, provide for entry into effect for five years on signature, for the Agreements amendment or extension, for termination by either party at 90 days notice and, finally, for a declaration that nothing in the Agreement prejudices the obligations of either party in other contexts.
The direct benefits of this Agreement to Ireland lie in its potential to supplement the IDA's efforts. The new ingredients are active US administration support in finding partners for Irish firms and funding sources for them. The ultimate benefit to Ireland will be more jobs, wealth creation and exports. Equally for the US side, the ultimate benefit will come largely from the earlier access to European markets of its smaller and medium-sized firms to cope with conditions in the years after 1992.
The administrative costs of the Agreement will be modest. I have mentioned that the IDA will provide the executive officer and his facilities within its existing operations. The net extra cost will be confined to the travel costs of Irish members of the joint advisory board attending meetings in Washington. This is estimated at £6,000 per annum.
As I indicated in my introduction, Dáil approval is being sought now as the Agreement comes into effect on signature. The Minister for Foreign Affairs will make the necessary arrangements with the US side for the signing. I would hope that the Agreement could be made operational within weeks.
Before concluding, can I again emphasise to the House that this is simply a framework: it will be up to those on both sides and, especially the executive officer on the Irish side, to make it work to best effect. I am satisfied that it can make a difference: the concept is right, the mechanism can work, the partners are out there and both sides are committed. I commend the motion to the House.