US economic revival will benefit Ireland

THE positive economic performance of the US economy can only benefit Ireland, according to Austin McCabe, president of the American Chamber of Commerce in Ireland.

Mr McCabe said that confidence was returning to the US economy and this was reflected in the views of American chamber members in Ireland.

"Anecdotally, I am hearing increasing optimism within our membership. I recently met with 35 of my American colleagues and it was heartening that nearly half had secured additional investment in 2003 despite the difficulties in the US economy. More importantly, well over half expect to maintain or increase their level of investment in Ireland in the coming 12­18 months. This in turn will lead to increased jobs, in spite of concerns being raised at corporate level about the costs of doing business in Ireland," he said.

Mr McCabe said members were increasingly highlighting that their international colleagues comment negatively on Ireland as being an expensive place to do business. This highlighted the need to ensure that all costs insurance, infrastructure, services, etc are kept in line with inflation.

Welcoming Tánaiste Mary Harney's recent comments reasserting Ireland's tax sovereignty, Mr McCabe said: "Ireland's corporation tax rate of 12.5% has been very important in attracting foreign direct investment. 80% of our members believe that it is very important to continued investment in Ireland that we maintain this competitive corporation tax rate."

Delivering the keynote address at the Thanksgiving Luncheon, US Ambassador to Ireland HE James C Kenny, echoed Mr McCabe's comments regarding the US economic performance and the special relationship between Ireland and the US.

"The economy has begun to bounce back. Manufacturing is on the rebound. Corporate profits are on the rise. Disposable income is up," he said.