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Dáil Éireann Vol. 706 Tuesday, No. 3 20 April 2010 DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES DÁIL ÉIREANN TUAIRISC OIFIGIÚIL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Tuesday, 20 April 2010. Ceisteanna—Questions Taoiseach ………………………………… 383 Minister for Social and Family Affairs Priority Questions …………………………… 392 Other Questions …………………………… 406 Leaders’ Questions ……………………………… 409 Adjournment Debate Matters …………………………… 415 Death of Polish President: Expressions of Sympathy…………………… 415 Requests to move Adjournment of Dáil under Standing Order 32 ……………… 421 Order of Business ……………………………… 422 Proposed approval by Dáil Éireann of the Defamation Act 2009 (Press Council) Order 2010: Motion …………………………… 432 Ministerial Rota for Parliamentary Questions: Motion ………………… 432 Private Notice Questions Air Space and Air Traffic…………………………… 433 Central Bank Reform Bill 2010: Order for Second Stage …………………………… 440 Second Stage ……………………………… 440 Private Members’ Business Energy Security: Motion …………………………… 450 Adjournment Debate Substance Abuse ……………………………… 471 Flood Relief ……………………………… 473 Schools Building Projects …………………………… 476 School Staffing ……………………………… 479 Questions: Written Answers …………………………… 481 DÁIL ÉIREANN ———— Dé Máirt, 20 Aibreán 2010. Tuesday, 20 April 2010. ———— Chuaigh an Ceann Comhairle i gceannas ar 2.30 p.m. ———— Paidir. Prayer. ———— Ceisteanna — Questions. ———— International Financial Services Centre. 1. Deputy Liz McManus asked the Taoiseach the way he will fully support the creation of the proposed green IFSC; the details of the plan; the role his Department will take in conducting a feasibility study; the timeframe for same; and if he will make a statement on the matter. [3427/10] 2. Deputy Enda Kenny asked the Taoiseach the role his Department is playing in overseeing the International Financial Services Centre; and if he will make a statement on the matter. [4599/10] 3. Deputy Eamon Gilmore asked the Taoiseach the role his Department plays regarding the supervision of the International Financial Services Centre; and if he will make a statement on the matter. [6732/10] 4. Deputy Caoimhghín Ó Caoláin asked the Taoiseach his role and that of his Department regarding the International Financial Services Centre; and if he will make a statement on the matter. [11526/10] The Taoiseach: I propose to take Questions Nos. 1 to 4, inclusive, together. As I stated in the House on 1 December last, my Department has supported the international financial services industry in Ireland since the establishment of the IFSC in 1987 by providing a forum for the exchange of views and the co-ordination of effort through the mechanism of the IFSC Clearing House Group, supported by working groups in the areas of banking and treasury, funds, insurance, pensions and a task force on asset management. The Clearing House Group identifies and considers issues of major concern to the long-term development of the international financial services industry in Ireland. These issues include the strategic develop- ment of new business areas and opportunities as well as the progress of relevant legislation, and it identifies, from time to time, the need for responsibility to be assigned for overseeing and reporting to the Government on any appropriate initiatives in this area. Since its establishment in 1993, the Clearing House Group has been chaired by the Secretary General of my Department and its membership includes representatives of industry associ- 383 Ceisteanna — 20 April 2010. Questions [The Taoiseach.] ations and of prominent figures from the international financial services industry. There are also representatives from my Department, the Department of Finance, the Department of Enterprise, Trade and Employment, the Financial Regulator, IDA Ireland, Enterprise Ireland, the Revenue Commissioners and the Stock Exchange. The spread of membership of the IFSC Clearing House Group and the IFSC working groups enables issues to be discussed in an open way which reflects a wide range of experience and expertise so that opportunities to develop sustainable business and employment in the various sectors of the international financial services industry can be achieved. It is estimated the industry employs 25,000 people directly and an additional 2,500 indirectly, while contributing €642 million in tax revenue to the Exchequer in 2009. This figure for tax revenue refers only to companies who were within the original IFSC tax regime and does not cover international financial services companies that commenced trading after 2002. The Clearing House Group does not deal with issues relating to individual enterprises or institutions, and it does not supervise or oversee the industry — that is a matter for the Finan- cial Regulator exercising his independent functions. In the context of its role in identifying development opportunities, the Clearing House Group has responded to the report of the high level group on green enterprise, which was published in November 2009 and identified the significant contribution that the development of the green economy can make to restoring our economy. The report stated that potential exists to develop a green IFSC cluster and brand incorporating green investment vehicles, the administration of funds managed under green principles and carbon trading and associated professional services. The IFSC banking and treasury group, which operates under the aegis of my Department, has begun a feasibility study into the launching of a green finance initiative within the IFSC. The concept of a green IFSC would incorporate a centre of excellence specialising in the provision of financial, professional and administrative services to the global climate change sector. It is hoped that this study, which is receiving support from the various industry associ- ations, professional firms, IDA Ireland and Enterprise Ireland, will be completed by the end of June of this year, when its recommendations will be presented to the IFSC Clearing House Group for consideration of future action. Deputy Eamon Gilmore: I want to ask the Taoiseach specifically about the proposal for a green IFSC, to which he referred, which was contained in the report of the high level action group on green enterprise which was published last December. Launching that report, both the Taoiseach and the Minister for Communications, Energy and Natural Resources said that of the order of 20,000 jobs could be created over the five to ten years from the establishment of a green IFSC, which would be very welcome. The Minister, Deputy Eamon Ryan, when launching the report, said that a project team would be established early in the new year to progress the idea of the green IFSC. He also said the green IFSC project would be rolled out over the middle to the end of 2010. Has the project team been established, who is on it, when will it report and is it still the intention that the green IFSC project will be rolled out from the middle to the end of the year? The Taoiseach: As I have explained, the first issue is to undertake a feasibility study to work up this project and to then come in June with the recommendations which will be presented to the IFSC Clearing House Group. That is in place at present and the study, which is receiving support from the various industry associations, IDA Ireland and Enterprise Ireland, will be completed by the end of June, which is the first phase in coming forward and making this a reality. 384 Ceisteanna — 20 April 2010. Questions Deputy Eamon Gilmore: That is a lot more ambiguous and long term than the statements about this made by the Minister for Communications, Energy and Natural Resources and the Taoiseach himself in December. The Taoiseach is now saying a feasibility study is being done. I would have thought the study would already have been done if it was in the report of the high level action group on green enterprise when it was announced. It appeared much firmer then compared to what the Taoiseach is now saying. Is he now saying that the idea of a green IFSC is still at the conceptual stage and that its feasibility is still subject to examination? The Minister for Communications, Energy and Natural Resources was clear about this. He said it was planned to create a project team to develop the initiative early in the new year. There was no mention of feasibility; this was to progress it and a project team was to be set up early in 2010 and the project would be rolled out over the middle to end of next year. From what the Taoiseach is saying now, there is no project and all that is happening is that a group in the Department of the Taoiseach is looking at the feasibility of the idea and it will in turn report back to the clearing house for the IFSC. The Taoiseach: The Deputy is engaging in semantics. The IFSC banking and treasury group has begun work on bringing this about. We are talking about a report that examines the poten- tial that exists to develop a green IFSC cluster and brand, incorporating green investment vehicles, with the administration of funds managed under green principles, and carbon trading and associated professional services. Launching a green finance initiative within the IFSC is now the job being undertaken by this group. It is not within my Department; there are many professionals involved from the banking and treasury sections of the clearing house mechanism, along with the IDA and Enterprise Ireland. The fact that we will have it by June of this year indicates the priority we have given to it. Deputy Eamon Gilmore: When will we see the first green IFSC job or enterprise? The Taoiseach: When the group reports to the Clearing House Group for consideration about the future action that will take place as a result. The work must be done. The potential for this initiative was outlined in the report the Deputy mentioned. Work for future action is now being prepared and put in place and those involved are going about it in a systematic and professional way.
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