Treaty rejection ‘could cost jobs’

A REJECTION of the EU Reform Treaty could scare US boardrooms that have put €52 billion worth of investment into Ireland, employers have said.

IBEC, which represents 7,000 businesses, urged a “yes” vote in the referendum expected in June.

There are 470 US companies operating in Ireland, which provide more than 95,000 high-skilled jobs.

IBEC said new research found that total US investment in Ireland is worth more than the combined US business presence in China, Russia, India and Brazil.

IBEC said the Lisbon Treaty will safeguard jobs and will better position Europe and Ireland to win more US foreign direct investment in the future.

Its director of EU and International Affairs Brendan Butler said: “These470 companies that have set up here did so because of our favourable tax rates, our access to an EU market of 500 million customers and our well-educated English speaking workforce.

“A ‘no’ vote would create uncertainty and send a very worrying signal back into the boardrooms of American companies, where decisions are made about future investment in Ireland.”

Mr Butler said a “yes” vote will mean Ireland’s ability to set our own tax policy is guaranteed.

“Therefore Ireland will remain among one of the most attractive places in the world to invest.”

IBEC cited research carried out by the Centre for Transatlantic Relations at Johns Hopkins University found that US investment in Ireland is worth €52.5 billion compared with €45.6bn in China, Russia, India and Brazil combined.

Mr Butler added: “The treaty will reform how decision are made in the EU so that Europe can remain an engine for economic growth and prosperity.”