Vol. 572 No. 2
96 Mr. Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether it is appropriate that Irish taxpayers are subsidising the arms trade through payments made by Enterprise Ireland to companies that supply military firms; the steps her Department is taking to end Irish involvement in the arms trade; and if she will make a statement on the matter. [22787/03]
The decision to grant-aid client companies is a day-to-day operational issue for the enterprise development agencies of my Department and not one in which I have a direct function.
However, I am informed by Enterprise Ireland that, while the armaments sector is not a sector that the agency would normally support in any direct sense, the complex interactions between companies and industry sectors in today's global marketplace make it impossible for the agency to know definitively, and in advance, the final use to which the products of a firm supported by Enterprise Ireland will ultimately be put. Products or components can in many cases serve more than one purpose.
Enterprise Ireland considers all applications for funding on a case-by-case basis within its legislative remit and within the overall guidelines established with the Department of Enterprise, Trade and Employment. Where a significant financial investment is being considered a full commercial evaluation of the proposed business is undertaken to ascertain its commercial viability. This would typically include discussions with key clients, as a result of which Enterprise Ireland executives will have access to information regarding major contracts undertaken. However, it is not Enterprise Ireland policy to require clients to advise the agency of their client list. This is regarded as an operational matter for the company and its directors and not one with which Enterprise Ireland, in its role as a development agency, considers that it should appropriately concern itself. A detailed list of recipients of Enterprise Ireland funds is provided as part of the agency's annual report.
All exports by Enterprise Ireland's clients are subject to export licences granted by my Department. In Ireland, as in most developed countries, controls are applied to the export of military and dual-use goods (dual-use goods are goods which have both a civilian and military end-use). These licensing systems generally reflect the need to comply with international obligations in relation to arms control, non-proliferation of weapons, and sanctions imposed on specific states.
Given the increasing focus that is being given to the necessity to strengthen strategic export control rules, it is important to ensure that Ireland's export controls are up to the best international standards. In this context, my Department has asked Forfás to undertake a review of our strategic controls systems with a view to recommending how best we can modernise and strengthen them and ensure full compliance with Ireland's international obligations. Economic consultants have been commissioned by Forfás to carry out the review, which is being done in two phases.
Phase 1 involved a short review of the current licensing system and identified perceived gaps in operational procedures. Phase 2 constitutes a more detailed review of the licensing system. More precisely, the terms of reference set out three main tasks for phase 2 of the review. These are: a public consultation process; discussions with Departments, agencies, international organisations, specialised agencies, users of the system and interested parties; and establishing international best practice.
The review is expected to be completed in December of this year.
