Dáil Éireann Debate, Thursday - 4 October 2012
46. Deputy Sean Fleming asked the Minister for Finance his views on the success to date of plans announced in July 2011 to create an additional net 10,000 new jobs in the Irish Financial Service Centre; the progress made on promoting Islamic Finance products and the Green IFSC; and if he will make a statement on the matter. [42300/12]
Amharc ar fhreagraI should say at the outset that ultimately it is the industry itself that creates employment by growing existing business and developing new initiatives such as the Green IFSC and Islamic Finance which the Deputy refers to in his question. The Government's new strategy for the development of the International Financial Services sector was issued approximately 14 months ago. Over this period, both the public and private sectors have been working together through the Clearing House Group, which is organised through Department of An Taoiseach to execute the strategy across a broad front.
There have been notable investment wins by IDA Ireland including Northern Trust, Mastercard, Paypal, HedgeServ, ICBC Leasing and CIMB Principal Islamic. Clearly, the Strategy is a 5 year one and we should have reasonable expectations about what will be achieved so early in its implementation and in view of the ongoing challenges facing the sector internationally. That said, progress and business delivery to date has been has very positive. In relation to Islamic Finance - we are now seeing a gathering momentum in this area.
The IDA, accompanied by the Department of Finance, have recently completed a five-day promotional programme in Singapore and Kuala Lumpar with a special focus on Islamic Finance. The programme included meetings with several key prospective investors at the Global Islamic Finance Forum (GIFF). In August 2012 the Irish Funds Industry Association welcomed the CIMB-Principal Islamic Asset Management Irish UCITS funds range, the first Malaysian fund promoter to establish funds in Ireland. In relation to the Green IFSC, I would firstly highlight that a number of measures were introduced in Finance Acts 2011 and 2012 to support this initiative.
Finance Act 2011 introduced the Employment and Investment Incentive (EII) to replace the Business Expansion Scheme (BES). The changes introduced in EII now allow for an increased lifetime limit that can be raised by a company to €10 million (up from €2 million). They also provide for an increase in the amount that can be raised within a twelve-month period of €2.5 million (up from €1.5 million). The new scheme also allows for green energy companies to be deemed to have commenced trading when they have made an application for a grid connection agreement. Under the previous BES, such companies were not considered to have commenced trading until they had begun to produce energy.
In addition, under Section 110 of the tax code which deals with securitisation transactions, Finance Act 2011 broadened the scope of the ‘qualifying assets’ which can be held by a Section 110 company to include a broader range of ‘carbon offsets’. Most recently, Finance Act 2012 extended tax relief for corporate investment in renewable energy projects and expanded the scope of Section 110 to explicitly include forest carbon offsets.
In relation to other developments, I am informed that Summit Finuas and Green IFSC, in partnership with Government’s Skillnets, has invested €700,000 in sustainable finance education. Ireland is leading the way in green finance education and over 70 professionals in the finance and enterprise sectors will have a MsC, Diploma or Postgraduate Certificate in the area of sustainable energy finance by mid 2013. An Taoiseach, Enda Kenny with Green IFSC launched the Global Green Asset Management Network in March 2012 at the New York Stock Exchange in order to accelerate the growth in green assets managed, domiciled or serviced from Ireland, setting the target of US $200 billion by 2017. With some $16 billion already managed, serviced or domiciled from Ireland, Green IFSC will shortly begin a global road show, lead by former Taoiseach of Ireland & current IFSC President, John Bruton, to highlight why Ireland is the prime jurisdiction of choice for green asset management. The first international event takes place in New York 28th / 29th November.
