Ireland must restore international stature

IRELAND has a big job to do in restoring its tarnished reputation, the new president of the American Chamber of Commerce believes.

Ireland will also face increasing pressure to scrap the headline 12.5% rate of corporation tax that must be resisted, he said.

American Chamber president Gerry Kilcommins described the low tax regime as “the jewel in the crown” in the ongoing battle to win overseas investment.

Three things will play a vital role in ensuring the economy secures its share of foreign direct investment: the tax rate, the talent of our workforce and our competitiveness, he said.

Mr Kilcommins was speaking for the first timeas the new president of American Chamber which celebrated the 50th anniversary of its founding on Monday.

In terms of the reputational damage is said it could be two to three years before the fallout from the banking crisis and the EU/IMF bailout are reflected in the flow of inward investment.

That is the likely scenario given such companies plan investments two to three years in advance, he said.

Mr Kilcommins is vice-president of global operations for Medtronic Vascular, and the general manager of its Galway site, which employs more than 2,000 people.

Ireland’s attractiveness an investment location should be promoted as “an integrated government communications campaign,” highlighting the many positives this country has to offer.

Stressing it was not “all gloom and doom” with the country now served by excellent infrastructure and many other positives including increased support for R&D including more attractive tax breaks.

Manufacturing workers’ wages were still above the OECD average and he said the new improved cost regime probably favoured those firms thinking of investing here more than existing companies.

Ireland needs to be conscious of the damage that has been inflicted and it was up to government, the state agencies and industry to put the message out there that this country “is still open for business”.