Vol. 423 No. 4
5 Proinsias De Rossa asked the Taoiseach if he will make a statement on his recent visit to the United States; if he will outline the role and function of the Irish-American Economic Advisory Committee announced by him during his visit; if he received any specific undertaking regarding job creation projects during his visit; and if he will make a statement on the matter.
6 Mr. Carey asked the Taoiseach the names of the countries which he has visited for the promotion of investment in the Irish economy; and the number of days which each country was allocated.
I propose to take Questions Nos. 5 and 6 together.
I visited the United States from 12 to 18 September 1992. The primary purpose of my visit was to encourage increased US investment in Ireland across a range of economic sectors, including industry, tourism, technology transfer, as well as exports to the US. To this end, I had meetings in New York, San Jose and San Francisco with business executives of major US corporations whose companies are potential investors in Ireland or are considering investment projects here.
In New York I also met with the Board of New York University which is establishing a Centre for Irish Studies at the University. I met with the Secretary-General of the United Nations for a discussion on issues of current world concern, including Yugoslavia and Somalia as well as the upcoming visit by President Robinson. At a meeting with the Heads of our semi-State bodies in New York, I heard their views on development matters and I emphasised the Government's intention to proceed rapidly with the establishment of an Ireland House which would bring together in one location all our semi-State bodies and the Consulate-General. I regard this project as an important element in giving a greater focus in the United States to Ireland's attractions as a location for investment, tourism, trade, etc.
One of my primary aims while in New York was to seek the co-operation and participation of a number of prominent Irish-American business people in the establishment of an Irish-American economic advisory board which would help identify new opportunities and companies who might like to invest in Ireland in the industrial or services sectors, including tourism and financial services, or engage in technology transfers with Irish companies or be interested in purchasing goods and components from Ireland. I explained to the group that, as well as helping the identification of such possibilities, I would like to see them help to develop these through their personal knowledge and contacts. I envisage that the board would meet periodically, say three or four times a year, in the Irish Embassy in Washington under the Chairmanship of a Government Minister or the Irish Ambassador to the United States. The State agencies based in the United States would attend these meetings to discuss and explore specific possibilities.
Individual contacts could also be arranged outside the regular Board meetings. The Irish-American business figures warmly welcomed and readily agreed to my proposal which they described as one long needed. The establishment of the advisory board is now being actively pursued by our Ambassador in Washington.
The board represents an extremely powerful, influential and knowledgeable force which could help the United States economy to grow abroad and help the Irish economy to grow faster so that we can reduce the unacceptably high level of unemployment.
In San Jose, I spoke to a large and influential grouping of Chairmen and Chief Executives of American corporations in Silicon Valley on the benefits to both the US and Ireland of US investment in Ireland, as a member of the European Community. A number of these corporations are already in active negotiations with the IDA about setting up operations in Ireland and I expect some positive announcements over the next few weeks.
During my visit to San Francisco I addressed the American-Ireland Fund, the Commonwealth Club and World Affairs Council and performed the official opening of the Exibition of Old Master European Paintings from the National Gallery of Ireland.
The promotion of investment in the Irish economy was the primary aim of my visit to the United States. I am satisfied that a sizeable number of new jobs will be created as a result of my visit. I avail, of course, of every opportunity that arises during visits abroad to advance Ireland's economic development. The visit to the US was my first with this as the primary objective.
As to the other countries I have visited, I should say that the same objective applies to my contacts abroad with foreign leaders and businessmen. The countries I have visited since taking up office last February and the time spent on the visits is indicated in the following schedule. As Deputies will see, the countries include — in addition to the US — Britain, Brazil, Portugal, Finland and Spain.
Schedule of Official Visits by Taoiseach Abroad February-September 1992.
|
Country |
Dates |
Purpose |
|
Britain |
26-27 February |
Meetings in London with British Prime Minister and Leader of the Labour Party. |
|
Brazil |
10-15 June |
UN Conference on Environment and Development in Rio de Janeiro and meetings with Prime Ministers of Britain, Portugal, Sweden and Malaysia and First Vice-President of Iran and others. |
|
Portugal |
26-27 June |
European Council Meeting in Lisbon and meeting with British Prime Minister. |
|
Finland |
9-10 July |
CSCE Summit in Helsinki and meetings with Presidents of the Ukraine, Lithuania and Slovenia, the Chancellor of Austria and the Prime Minister of Finland. |
|
United States |
12-18 September |
Encouragement of US investment in Ireland and cultural matters. |
|
Britain |
25 September |
Meeting with British Prime Minister. |
|
Spain |
4-5 October |
Visiting EXPO 92 in Seville. Meeting with Spanish Prime Minister in Madrid. |
What is the membership of the board and who has appointed them, or can anybody join? Is there any Government funding for this board and under what heading will funding be provided? Finally, in regard to the sizeable number of jobs which the Taoiseach expects will arise from his visit, were there any specific commitments from the companies he met to actually locate jobs here?
In regard to the advisory board, no funds are required for it. The people that I invited to discuss this idea with me are very prominent Irish-American business people. I do not have to list out the names here; many of them would be familiar to all the Deputies in the House. They will be called together in the embassy in Washington, the idea being that they have a lot of financial muscle and intelligence operations within their own companies; many of them are directors on other boards throughout the United States and would also have knowledge of developments that can take place. They can be of immense help to the IDA or SFADCo by putting their weight behind them to get investment to come to Ireland. At the end of the day, if we are as good as the next it sometimes takes extra push, influence and muscle to try to get industries to locate here, and the same sort of pressure is exerted by other countries to entice international investment to their countries. No funds are required in this regard. They have all willingly said to me that they are quite happy to participate and be of maximum help to us in the difficult job ahead of us. This is the first time they have been brought together to try to co-ordinate their efforts and to have free and open discussion between them as to how better results for Ireland might be achieved. In relation to the question of announcements regarding specific projects, I expect announcements to be made over the next number of weeks in relation to some of the projects that I discussed with either the chairmen or the chief executives of some of the corporations I met.
Can the Taoiseach tell us if he sees some value in these whistle stop tours he has engaged in? The Minister for Industry and Commerce, Deputy O'Malley, is going out to visit the same people this week and we have the same sort of flurry around Saint Patrick's Day. I put it to the Taoiseach that all they are doing is boosting the high profile of the so-called job creation agencies abroad, that it is a good PR exercise and nothing more.
Questions, please.
Can the Taoiseach point to anything substantial arising out of any of those visits or to any one set of jobs that will be created this year?
The Deputy can ask me that question in a couple of weeks time if, in the meantime, he does not see an announcement or two relating to substantial job numbers. If the Deputy thinks that these visits are not necessary, he should talk to somebody out there who is trying to secure international investment against opposition such as the British Royal Family and top influential people from any country. We are trying to promote Ireland as an attractive location vis-á-vis other countries. I can tell the Deputy that it is not a wasted effort and if he thinks that it is a holiday I invite him to examine my itinerary for that week on both the east and west coast of America.
May I ask the Taoiseach, in view of the specific strictures in the Culliton report on the approach we have adopted towards foreign industry, if on this occasion he took any special measures to ensure greater linkages of the companies we were endeavouring to attract and the economy? May I ask him, specifically, if he is conscious of the fact that of all the companies based in Ireland the US companies have the weakest linkages and that only 19 pence out of every pound in export earnings from these companies goes towards either workers' wages or further orders for Irish business? Bearing that in mind, has the Taoiseach taken any special initiative to ensure greater linkages between American companies coming here and the Irish economy?
The Deputy should be aware that, since I took over this job, I have appointed a special economic adviser to my Department, and he has attached priority to the question of improved linkages. He is tackling that area on the basis of the semi-State sector in the first instance and of attracting international investment to Ireland. However I do not think we can point the finger at the United States companies who set up here. Nobody could say that we, as a nation, have availed of all the opportunities that are available to us in relation to the question of linkages; there is much room for job creation throughout all the sectors involved in so far as US investment is concerned. We must try to improve out performance. In relation to goods and services we supply only 25 per cent to 26 per cent of the market. Thousands of jobs could be created in that area but we have to do this ourselves and should not expect companies coming here to do it for us. Everybody will cooperate with us but we have to get our act together. We have not done that very successfully up to now. In relation to research and development, American companies tend to concentrate this activity at one location. However, we are making slow progress in some respects in that regard. To complement that area we will have to improve our back-up infrastructure. Otherwise, as I said, the US will continue to keep that activity in the United States where they have everything together.
Is it in order to ask the Taoiseach whether he met the chief executive of the Heinz Corporation? I ask the question in view of the disastrous relationship that Erin Foods had with that corporation, the job losses at Erin Foods throughout the country and the effect this has had on both the horticultural and agricultural industry here in Ireland? Is that one of the areas from where the Taoiseach is hoping to receive support?
I am not interested in dealing with past history except to say that I did meet the chief executive of the Heinz Corporation. He was one of the people who attended the meeting in question. I am sure the Deputy is aware that that corporation launched a sizeable project in Dundalk recently. We hope to secure more investment from them.
What about Carlow? Where have those jobs gone?
I would be surprised to hear that Deputy O'Sullivan was anti any job that might come from that source.
The jobs have been taken from them.
Deputy O'Sullivan, you asked a question; please listen to the Taoiseach's reply.
He has got the answer.
We would welcome as many jobs as we can get from United States companies. We need jobs very badly but, given that the Taoiseach visited San Josè in California and met both business and tourism interests in the United States, can he tell the House if the issue of the Shannon stopover was raised by either American business or tourism interests——
That is a separate question; it does not arise now.
The Taoiseach specifically mentioned business and tourism interests. May I ask the question therefore given that there are no flights between Ireland and Los Angeles although in the past Aer Lingus considered the possibility of purchasing a particular aircraft to service that location——
The Deputy is raising specific matters which would require tabling separate questions.
With respect, if the Taoiseach is going to sell Ireland in the United States and to deal with tourism and business interests——
If the Deputy has a pertinent question, he should put it; otherwise, he must resume his seat. I am moving to Question No. 7 in the name of Deputy Proinsias De Rossa.
Will the Taoiseach please offer to answer the question?
On Question No. 5——
A brief question, Deputy De Rossa.
In his initial reply the Taoiseach said it was not necessary for him to list the people involved in this advisory board. May I ask him, therefore, what precisely is the status of the board? Calling it a board implies some official status. Is this a private or an ad hoc arrangement or, given that they are going to meet in the Irish Embassy, are they to have some official status? I should say that I am fully in favour of the idea but we should know precisely the status of the board.
It is not a statutory arrangement, it is an arrangement by which prominent Irish business people who have made it to the top in Irish American business can come together to try to pool their resources and impart knowledge to our various agencies on how to improve business for Ireland, be it by buying and selling, investment, tourism, infrastructure and so on. They will meet perhaps three or four times a year at no cost to the Exchequer. These people will be generous with their time though so far as they are concerned time is money. We are lucky to have people of that calibre to sell our message to the boardrooms of corporations around America.
Deputy J. Bruton rose.
A brief question, Deputy as we have dwelt overlong on these questions.
Would the Taoiseach agree with me, as someone who has been on trips like this, that while these are extremely useful exercises, it is entirely misleading to pretend that any jobs accrue to this country solely or mainly as a result of discussions either with Taoisigh or Ministers; that, instead they accrue as a result of painstaking efforts on the part of a large number of people? Would the Taoiseach agree also that while the value of such visits is important, it should not be overstated and certainly should not be associated with the promise of 1,000 jobs or with any given number of jobs as emanating solely from such a visit? Such promises create cynicism and nothing more.
Of course these visits are important. The Deputy might talk to Deputy Carey and convince him, too, that they are important, given that he does not seem to attach any importance to them.
These trips only give rise to cynicism.
Industrial investment is attracted following much work by many people. However, I cannot accept Deputy Bruton's assertion that a meeting between the Minister for Industry and Commerce or the head of the Government with the real decision maker cannot make a difference. In my experience on some occasions this has made the difference. I will leave it to other Ministers to make their own judgment. Certainly, on one occasion, during my last visit such discussion made all the difference.
