The issue of country-by-country reporting by Multinational Enterprises (MNEs) features prominently on the agenda of both the European Union and the OECD. In 2010, the EU Commission issued a Communication setting out a twelve point action plan in support of the Millennium Development Goals which inter alia called on Member States to facilitate ongoing research into country-by-country reporting. Work is proceeding at the EU level on this with an initial focus on the extractive sector.
In parallel, the OECD, through the work of the Development Assistance Committee, is seeking to enhance transparency and accountability of MNEs including an examination of the feasibility of introducing full disclosure through country-by-country reporting.
While we are supportive of the efforts of the EU Commission and the OECD in this area , we are also pragmatic in recognising the inherent difficulties in advancing the issue, because of the many stakeholders involved including the International Accounting Standards Board and MNEs themselves which have very real competitive concerns.
I want to assure the Deputy that we will continue to work with our Partners on this issue but equally we would not wish that this issue would deflect attention from other very important transparency issues such as Exchange of Information and facilitating developing countries in their negotiations with MNEs.