Council presidency ‘a valuable opportunity’

Ireland’s upcoming presidency of the European Council could unlock billions of euro worth of new investment from the US, according to the country’s corporate representative here.

American Chamber of Commerce president, Peter O’Neill yesterday said Ireland’s term of office — the first six months of 2013 — also marks “a valuable opportunity” for Ireland to explain, “persuasively”, to our partners why the issue of safeguarding our 12.5% corporate tax rate is so critical.

Speaking to the 400 delegates attending yesterday’s annual American Chamber Thanksgiving Lunch, Mr O’Neill backed the Government’s goal to launch talks on a new EU-US trade deal during its presidency.

“A deal has the potential to unlock billions of euros in new business opportunities, which can only benefit Ireland. According to the European Commission, the prize is the injection of up to €122bn annually into the European economy, benefiting the type of businesses that make up Ireland’s industrial base,” he said.

Mr O’Neill said the Government must be careful not to damage Ireland’s competitiveness in the upcoming budget: “It is important not to price Ireland out of the market for top talent... Personal taxation is a key element of this competitive mix and personal taxation arrangements, here, have to be competitive with offerings everywhere. Ireland has to be attractive for key people to locate in — particularly as we address retaining and attracting key skills in our organisations.”

Mr O’Neill said the rise this year in inward investment from the US, with 55 major announcements and combined investment of nearly $2bn, was evidence that the US-Irish relationship is “in good shape”.

Also addressing delegates, Finance Minister, Michael Noonan said there is “a real recognition” that Ireland’s 12.5% corporate tax rate is “a vital component of our recovery, and is embedded in our ability to exit the programme on track at the end of 2013.”