Excessive legislation 'will impact Irish business'

Excessive European Union legislation is in danger of affecting US multi-national companies doing business in Ireland.

The warning came from Joanne Richardson, Chief Executive of the American Chamber of Commerce who claimed that US corporations were 'concerned' at what they termed excessive EU legislation of the business environment.

Richardson pointed to the proposed harmonization of corporation tax rates as evidence of this.

"Ireland in particular needs to maintain its current corporation tax environment, as it is one of the key initiatives in attracting foreign direct investment," Richardson said.

"Excessive EU legislation has the potential to add greatly to the burden of doing business throughout the Union as well as making Europe an expensive location for US multinationals.

"We do not want a situation developing where it is easier for companies to locate in developing countries."

The American Chamber is currently finalising its submission to the Department of Enterprise, Trade & Employment on Irish Industrial Relations practice.

The US remains the single largest source of inward investment in Ireland with almost 90,000 people employed in 570 US companies accounting for 65% of all foreign investment.

Almost a quarter of all US investment into Europe comes to Ireland and any increase in taxes would also impact on the European Union as a whole.

US investment amounts to over $540bn, supporting some 4m jobs throughout the EU.

Richardson was speaking at a business luncheon hosted by the American Chamber of Commerce in Cork today at which Irish MEP Pat Cox, President of the European Parliament, was guest of honour.