Enda Kenny: Door ‘open’ to US business leaders

The Taoiseach has been driving home the message that Ireland is “not a tax haven” during the first day of his US visit, but told a group of influential American business leaders yesterday that they had an “open door” to the Irish Government.

Enda Kenny told a gathering of the US Chamber of Commerce that “reputational damage” has been done to Ireland by the “stateless company” concept which allowed companies avoid tax by routing profits through Ireland. He said this loophole was done away with in last October’s budget.

“I want to make it very clear that Ireland does not comply with any of the four criteria for tax haven status. Out rate is consistent, it is across the board, it applies to all sectors across the country.”

During the event in Washington DC, Mr Kenny said the 12.5% corporate tax rate has been “a cornerstone of the offering of attractiveness in Ireland”, but acknowledged that it has been “the subject of some debate in the US Senate and on the Hill”. He described his “close” relationship with the US Chamber, saying he meets with them regularly, and spoke only last week to its president, Thomas Donohue, who has argued strongly for keeping a low corporate tax and for bringing down income taxes in Ireland.

Mr Kenny told the gathering: “If you got a problem, you have an issue or anxiety or concern or a proposition or a proposal I want to hear it. My number is a public number you can call me anytime.”

He described how citizens in other countries always “find it difficult to figure out how anybody can ring up the Taoiseach and say I want to talk to you”. But he said he tries to take as many calls as possible from citizens who want to discuss any issues with him. “That is responsibility taken to the ultimate level of politics,” he said.

“For American business and American investment in our country, you have an open door to Government. Because it’s in Government’s interest to see that these obstacles are removed and opportunities are created for people to live and work and grow our economy. That is an invitation, it is open to everybody.”

The Taoiseach compared the economic backdrop to this visit to that three years ago when, he said, the country was in “serious difficulty”.

“We have come a long way to higher grounds. I see where the brighter days and greater prosperity are up ahead. That requires some further challenges to be met.”

He will meet with President Barack Obama at the White House today for the annual bilateral meeting between both leaders, which will be followed by the traditional exchange of the bowl of shamrock at a reception later in the evening.

Mr Kenny said they will discuss issues such as immigration reform and the plight of the undocumented Irish in the US.

“I’ll point out that Ireland has disproportionately very few accesses to citizenship in the States and given our links over a number of centuries this should be far easier to achieve,” he said.

Both men will also discuss the EU-US Free Trade Agreement which is under negotiation. Mr Kenny told the business leaders yesterday that Ireland would “work closely” with the US Chamber “to make it happen”.

The Taoiseach also defended his six-day trip to the US as well as the exodus of most of the cabinet for St Patrick’s Day celebrations around the world.