National Competitiveness Council Report cannot be ignored. American Chamber of Commerce in Ireland
National Competitiveness Council Report cannot be ignored. American Chamber of Commerce in Ireland
22 July 2010 Ms. Joanne Richardson, Chief Executive of the American Chamber of Commerce in Ireland has said that the underlying message from the National Competitiveness Council's Report published today is that much still needs to be done to improve Ireland's cost competitiveness.
"The headline news that we have regained some cost competitiveness is obviously welcome. But we ignore at our peril the very stark message of this report - that structural changes are required to ensure that we do not erode competitiveness when the economy returns to growth".
"As far back as last January, the American Chamber openly questioned the improvements in competitiveness that were being achieved by Ireland. It was clear then and remains the case that these were as much to do with lower inflation and recessionary factors rather than real improvements in our competitiveness.
"We are fortunate that in attracting foreign direct investment our corporate tax rate off-sets the higher cost of doing business here. However this leaves us vulnerable to losing investment to countries with lower cost bases and an equally attractive or better corporate tax rate. Our favourable corporate tax rate should act as an incentive not mitigate against higher costs".
Ends.
About the American Chamber of Commerce in Ireland
Today, almost 100,000 people are directly employed[i] in over 600 US firms in Ireland[ii] accounting for 70% of all IDA supported employment[iii].. The IDA announced 125 new and expansion projects with companies during 2009[v]. Almost two out of every three foreign direct investment projects coming to Ireland in 2008 have originated from the US. In 2008, US firms paid over €3b to the Irish Exchequer Taxes such as Corporation Tax, VAT, and Payroll taxes (or approx 40% of total corporate tax take in 2008[vi]) and contributed a further €15b in expenditure to the Irish economy in terms of payrolls, goods and services employed in their operations[vii].
[i] Source: IDA Jan 2009 from a Forfas Employment Survey, plus an estimated 6,000 working in non-grant aided US businesses in Ireland.
[ii] American Chamber Database
[iii] IDA Annual Report 2008
[iv] American Chamber Estimate
[v] From IDA Press office based on the IDA's Annual Report
[vi] Amcham estimate based on IDA End of Year Statement 2008, issued Jan 2009 at 85% of total.
[vii]. Based on the 2008 Annual Business Survey of Economic Impact, and an American Chamber estimate of approximately 80% of total agency assisted firms being of US origin.
For reference; Laurie Mannix, MKC Communications, 086 8143710