Ireland’s US multinationals promise ongoing support but issue warning

THE new president of the American Chamber of Commerce in Ireland has said that the body’s members here will continue to support the country’s efforts towards economic recovery, but added that the Government must act to lower Ireland’s cost base.

Dr Paul Duffy — head of manufacturing at pharmaceutical giant Pfizer’s Irish operations and president of the Chamber since the end of last month — was addressing the annual American Chamber lunch in Dublin yesterday.

Dr Duffy said that while further job losses could not be ruled out, Ireland could do things to lessen the risk of multinationals losing their faith in the economy here.

“We’re in a global economic downturn and seeing around 50,000 jobs going in one week in the US and forecasts of up to five million this year around the world, so in a lot of cases there’s not a lot we can do. It would be very difficult to say we have not seen the last of job losses in Ireland,” he said.

“We do have the opportunity to correct our cost base, as a country. Prices are coming down, but we have the second highest energy costs in Europe, ” he said.

“We shouldn’t miss the opportunity to pull into line with our competitors on cost issues. If there is any silver lining on the current difficulties in which we find ourselves, it is that we now have the opportunity to realign our costs to become more competitive.”

Dr Duffy also urged that the 12.5% corporation tax for overseas companies be maintained but warned it was no longer a unique or sufficient for Ireland.

“We must be alert to potential dangers in taking the wrong corrective actions. We must not make strategic mistakes that affect competitiveness, that delay recovery and that undermine future prosperity,” he warned.