Business chief urges reversal of EU referendum

An Irish business chief today underscored the importance for industrial investment of reversing last year’s shock referendum rejection in Ireland of the Nice Treaty for the expansion of the European Union.

Sean Dorgan, head of the Industrial Development Agency (IDA) said: ‘‘Business, and especially inward investment, is totally tied to our future in Europe.’’

Presenting the agency’s annual report, he stressed: ‘‘Ireland’s economic prospects depend on a strong, confident and growing Europe.

‘‘The vote on the Nice Treaty will be widely seen by investors and potential investors as indicating the degree of our engagement in the EU whether we are participating at the heart of its future development, or whether we are marginalised.’’

Ireland is due to poll again on Nice in October, and Taoiseach Bertie Ahern, backed by opposition parties, have pledged an active campaign for a Yes vote, following last year’s embarrassing electoral refusal to back EU enlargement through the recruitment of one-time Iron Curtain states.

The Ahern administration has attempted to dispose of an issue seen as making a central contribution to the last referendum’s defeat by securing an EU pledge that Ireland’s traditional policy of military neutrality will not be threatened by any changes in the community.

Today Mr Horgan, whose views are seen as a general reflection of the business sector in Ireland, said: ‘‘We know this country has gained international standing and investment since joining Europe in 1973.

‘‘We have benefited directly from European funds and market access. But, just as importantly, we have gained from being seen as committed and engaged Europeans.

‘‘We have been recognised as being open, active and confident in all our dealings. This has contributed hugely to our reputation as an investment location.’’

The IDA chief executive added ‘‘Leading international companies are currently investing in excess of €5bn in new facilities in Ireland.

‘‘We have every prospect of growing this level of investments within the next few years so long as we are seen as outward-looking, competitive and willing to take on each new challenge that faces us.

‘‘Our attractiveness will quickly wane if we are seen to be turning our backs on the future of Europe.

‘‘If the Nice Treaty is not accepted, we are in danger of being presented - however unfairly as unwilling to accept the challenges now posed by a larger EU - with new members joining who are less advantaged than we are, or were when we joined.

‘‘The forthcoming decision on the Nice Treaty will be the most important vote for inward investment in Ireland since our original decision to join the European Economic Community in 1972.’’

In line with legislation, Environment Minister Martin Cullen today established a commission, headed by former Chief Justice Thomas Finlay, to promote awareness of the Nice referendum and prepare a statement explaining the issues at stake.