Ireland viewed as long-term investment, says IDA chief

IRELAND is still viewed as a long-term growth-orientated country and remains highly ranked in terms of foreign direct investment locations, an international banking conference in Dublin heard yesterday.

Addressing the inaugural national conference of the Federation of International Banks in Ireland, IDA Ireland chief executive, Barry O’Leary, said confidence still exists among US investors, regarding Ireland.

He added that the US will remain Ireland’s chief source of foreign direct investment in the coming years.

At the same conference, former taoiseach and current IFSC president, John Bruton, expressed confidence Ireland will be able to repay its national debt.

He said that the country will have the capacity to repay its debt and should do so.

Mr Bruton said Ireland — given its history of growth on the back of its EU membership — is arguably, the least of all member states to afford not to be true to its commitments.

He also revisited the thorny issue of Ireland’s 12.5% corporation tax and possible moves from Europe to bring it in line with higher rates of other member states.

The former EU ambassador to the US also said there is no way the corporation tax rate can be expected to change; adding he cannot see the EU not being smart enough to realise Ireland’s 12.5% rate is a major piece of machinery for the country to repay its debt.

Mr Bruton likened EU calls for a higher rate to a bank lending money to a business customer then asking them to dismantle the machinery they used to generate revenue and ultimately repay their loan.

Mr Bruton rejected suggestions that the country was effectively “bust”, saying there remains a great deal of accumulated wealth here.

However, he did say Ireland’s economic state of affairs pose the biggest challenge to the country’s independence since the Act of Union in 1801.

Also at the conference, Ann Cairns, head of financial services at international professional services firm, Alvarez & Marsal, said that a survey undertaken by her independent company into the prospects for the Irish banking sector, showed that nearly 80% of respondents supported the Government’s planned consolidation efforts, with more than 70% saying that the international liquidity support measures have been effective.