Apple tax probe not harming Ireland ‘in any shape or form’

IDA head Martin Shanahan talks to the Irish Examiner about his belief that recent investments will deliver significant economic benefits to regional towns.

He insists Europe’s probe into the tax affairs of Apple in Ireland is not discouraging investments into the country.

What is the total number of jobs created this year by IDA-assisted companies?

Last year, there were 15,000 jobs created by foreign direct investment (FDI) in 2014. That momentum has carried into 2015. It is a strong momentum. We will be announcing the results in the next few weeks. It is very strong, and the outlook is reasonably strong, but I have to say that they are all hard won.

Can we talk of a new ‘golden era’ for FDI?

I’d be reluctant to refer to it as a ‘golden era.’ But we have a very strong offering at this point of time. We are a very strong base for those companies thinking of investing in Ireland (for the first time). We are very strong in a small number of sectors: technology, pharmaceutical, medical devices and financial services — all of which are performing at the moment. That is very positive. The other part of the strategy is targeting the types of companies (small but fast-growing companies) that are here this morning. We have over 100 of them on board in the last short number of years, and the bet now is that some of these companies will grow exponentially and many are North American and have their first footprint in Ireland. The bet is that, because they are already in Ireland, some at least will grow and operate their international offices out of Ireland.

Though no single big investment programmes?

It is a mixture. We have announcements already this year — an €800m investment going into Athenry for the Apple data centre which will create hundreds of jobs, immediately, on the construction side, and it will continue to operate on that scale in the hundreds for many years to come. Similarly, Facebook announcing they are going for planning in Meath this morning — that will sustain hundreds of jobs in construction and operations.

Is it a myth that datacentres do not produce many jobs?

You can’t put €800m into a town such as Athenry without having an immediate positive economic impact. Or, you can’t put an investment into Clonee without having a positive outcome. We have had companies like Alexion in west Dublin building a significant plant. This is capital going into the ground. Similarly with BMS (Bristol-Myers Squibb) in Cruiserath. Similarly in Limerick. These are all companies investing hundreds of millions creating hundreds of jobs. We have had a very strong start to the year regionally. Companies going into smaller towns — Agora going into Wexford; ABEC announced 100 jobs in Fermoy in Cork; Zimmer going into Oranmore in Galway. Again, those types of investments and those jobs will have a profound impact.

And the Apple tax probe. Has had any negative impact on investments? The Commission has many other probes?

I do not believe it has impacted on FDI. Let’s be clear. The commission announced an investigation — that’s what it is, an investigation. There has been no finding.

The company and the Government have both said there have been no State aid. The Government has said it will defend any contrary finding aggressively. And at this point it is just that, it is a probe. And as you point out there are probes going on across Europe.

It is hasn’t had any impact on FDI in any shape or form and it hasn’t had an impact on Apple. Apple continues to invest, as we have seen in the datacentre in Athenry.