Irish officials clashed on impact of telecoms law on Chinese investment

State officials seeking foreign investment criticised cyber security protections that could be used to ban equipment from Huawei as ‘extremely unhelpful’

Records cast new light on divisions within the Government and Huawei’s efforts to block the measures. Photograph: allOver images/Alamy/PA

Government officials have clashed over new telecoms security legislation that could be used to ban equipment from Chinese-owned group Huawei from Irish networks.

The measures were advanced by Minister of State for Communications, Ossian Smyth, on the advice of the National Cyber Security Centre, the State body responsible for dealing with threats and vulnerabilities in computer systems.

Internal files show how the Department of Enterprise, Trade and Employment found parts of the law “extremely unhelpful” while IDA Ireland, the inward investment agency, questioned whether the legislation went “unnecessarily” beyond EU requirements.

The records, released under the Freedom of Information Act, cast new light on divisions within the Government and Huawei’s efforts to block the measures.

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The company submitted a legal opinion against the law, co-written by Attorney General, Rossa Fanning, when he was a senior counsel in private practice. That opinion questioned the constitutionality of the measures.

The Government has said Mr Fanning had no role in moves to change the law after he took office, by replacing the damaging “high-risk” vendor designation on target companies with the neutral expression “relevant” vendor.

IDA Ireland cited Mr Fanning’s opinion for Huawei in talks on the legislation, however.

“From IDA’s perspective, it is important to consider the unforeseen consequences of retaining the phrase ‘high-risk vendor’ as it is seen diplomatically as a de facto reference to China. IDA expressed concern that this perception might have an adverse effect on investment,” said a January meeting note.

“IDA also cited a recent report commissioned by Huawei on the matter expressing strong concerns from a legal perspective. IDA met with Minister [Simon] Coveney, who expressed concern about the situation and has requested a brief on the issue,” the note added, referring to the Government minister.

Last-minute concession to telecoms firms after Chinese criticism of new lawOpens in new window ]

The measures were opposed by China’s embassy in Dublin, which took the unusual diplomatic step of publicly challenging legislation as it went through the Oireachtas. The law took force this month but remains subject to new regulations.

In a November email to the Department of Enterprise secretary general, one senior official said it was “unclear” whether the stance of the Department of Communications “results from well-founded security concerns or from a relaxed approach to engagement with affected stakeholders”.

Huawei unsuccessfully sought a November meeting with then Tánaiste and Minister for Enterprise Leo Varadkar. The company submitted English-language translations of “much more balanced” German and Dutch telecoms security law, which the IDA circulated to enterprise officials.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times