Michael Noonan
Ceist:4 Mr. Noonan asked the Taoiseach when he proposes to meet with the Ireland America Economic Advisory Board; and if he will make a statement on the matter. [4631/01]
Ceisteanna–Questions (Resumed). - Official Engagements.
For several years it has been normal practice to hold a meeting of the Ireland America Economic Advisory Board during the Taoiseach's visit to the United States over the St. Patrick's Day period. In accordance with this precedent, it is my intention, subject to scheduling constraints, to chair a meeting of the advisory board in Washington on 16 March. I anticipate the meeting will consider developments in the Irish economy as well as the Northern Ireland peace process.
Has that meeting been arranged? Is the Taoiseach aware of the concerns of American businesses who have invested in Ireland regarding the Government's abolition of the PRSI ceiling as announced by the Minister for Finance in the last budget, and the additional costs that imposes on American investors? Does he intend to discuss the possible implications for the American firms in Ireland of a slowdown in the US economy? Many of them have already signalled redundancies as they are expecting a slowdown in their domestic economy.
As I understand it, a breakfast meeting is set for 16 March. The tradition for the past eight to ten years has been that most people go to the Ireland Fund function, which takes place the night before. Subject to the numbers that arrive, the meeting could take place on that day, or the next day. As far as I am concerned, the meeting is scheduled. I am generally aware of the view of business regarding the PRSI ceiling, which they have held for a number of years. American businesses have had a good tax arrangement for the past few years, although I have not had an undue amount of correspondence with them. I will talk to the chamber of commerce and IBEC on this matter.
The third matter raised by Deputy Noonan will be on the agenda. As he knows, there is an excel lent group of senior Irish-American individuals who will let us know how corporate Irish-America feels about the situation, including what they think about companies in which they have invested in Ireland. I look forward to hearing the views of the Irish America Economic Advisory Board, as it has helped successive Governments for almost ten years and has been extremely helpful in many areas, ranging from IT, chemical and pharmaceutical industries to banking and the IFSC. It is an extremely useful sounding board for Ireland. I will take up that and other issues with it.
Will the Taoiseach agree it was exceptionally unfortunate timing that the PRSI ceiling was removed just when the slow down occurred in the United States, which led to the spate of announcements of redundancies in American owned factories in Ireland since Christmas? Will he instruct the Minister for Finance to drop the PRSI proposal in the Finance Bill, which will shortly go into committee?
I disagree with that. Our corporate industries, particularly the ones to which the Deputy refers, are high earners and are doing remarkably well due to our tax system and far better than they would in practically all other countries. While they have lobbied and argued for some other areas of PRSI changes in years to come, the take from our corporate companies is by no means anywhere near the medium line of what industry would be prepared to pay. I will not change from that position.
Is the Taoiseach aware of the recent international consultants report which suggests some of the profits attributed to American companies in Ireland could be due to tax avoidance plans by individual Americans? Will he raise that issue at the proposed breakfast meeting, if he is aware of it? If he is not aware of it, will he brief himself on the issue?
I have not seen the recent report, but I have been aware of suggestions and issues put forward over the years and issues that have been raised by others about some of our IFSC practices. I will consider that. On examination of most of these allegations over the years, I found them not to be true. A high degree of scare mongering by others outside this country takes place regarding activities in the IFSC, but on closer analysis they are totally unfounded.