asked the Minister for Industry and Commerce if the Government considers that foreign investment is vital for the expansion of Irish industry and, if so, if he has any plans for the expansion of foreign and in particular UK investment in this country.
Ceisteanna—Questions. Oral Answers. - Foreign Investment.
30.
Job opportunities generated by Irish enterprise are not sufficient to meet our full employment needs. In these circumstances, foreign industrial investment in Ireland is essential to provide the residual job needs for young persons entering the labour force, for persons leaving farming, for those who are already unemployed, and for workers becoming redundant.
As the Deputy is, no doubt, aware, the Industrial Development Authority have recently been allocated an increased grant-in-aid in order to intensify their efforts to attract industry from abroad.
The Government will also, of course, continue to accelerate the rate of new job creation by home industry, and Irish firms and entrepreneurs can be assured that they will get maximum possible encouragement. The IDA through its home industry division, is looking at new ways of getting a greater contribution from Irish enterprise to industrial development here.
31.
asked the Minister for Industry and Commerce if any assessment has been made as to how the US President's proposals regarding this country's income tax-free incentives on exports will affect US investment in Ireland.
The United States Treasury proposals for changes in the tax treatment of profits earned by the overseas manufacturing subsidiaries, or branches of US corporations, could, if implemented, have serious consequences for the future level of United States industrial investment in Ireland.
The Government will endeavour, as far as possible, to ensure that the special industrial development needs of Ireland are recognised by the US Government when determining the final shape and operation of the proposed legislation.
I am aware that there is provision for making special arrangements with special countries but I understand that it is most unlikely that that will happen. This proposed legislation in the US assembly would obviously take considerable time to be implemented and, while the threat of it is there, there will be a reluctance, I think, on the part of some people who are already making inquiries and who have proposals for here to go ahead with them because this incentive is the main reason why they want to come here. I wonder could the Minister devise some other form of assistance for these firms should this become law in America to ensure that they will not lose the advantage that they would have if they established now?
The present situation in regard to investment perspectives for US firms in Ireland is as the Deputy describes it. It is a source of worry and it is something we are watching continuously. The IDA are at all times considering the form of incentives in order, if possible, to neutralise the effects of this legislation if it becomes law and, of course, there is a doubt about that. The Deputy will also be aware that in community circumstances the nature of incentives is not a matter over which we have sole control. These incentives have to be acceptable to the community as a whole.
If this law is passed in America surely the advantages that we negotiated as a developing country in the EEC would be negatived and surely in those circumstances the EEC would agree to our putting in some incentive that would be similar in amount as distinct from the way the incentive is given?
It is a matter that is having continuous review. The special position of Ireland in the EEC is not as the Deputy has indicated.
Our incentives need not be less attractive. We have a provision whereby if we have alternative incentives they are not to be less attractive.
Would the Minister not agree that there is an urgency about this matter because of the other companies that might delay making decisions to invest here?
Indeed, it is urgent. It is a matter on which we are in continuing touch with all relevant authorities.