Vote yes to safeguard US investment, says IBEC

A lobby group of the country’s leading employers has urged a ‘yes’ vote for the Lisbon Reform Treaty to secure huge investment from US companies for Ireland.

The Irish Business and Employers Confederation (IBEC), which represents over 7,000 employers, including the largest American multinationals, said the treaty would safeguard investment in the country and would better position Europe and Ireland to win more US foreign direct investment in the future.

IBEC made the call following a new report, which outlined the high level of investment that has been made by US companies here. Corporate America’s investment position in Ireland was €52.5bn in 2006.

This is significantly ahead of the investment by US companies in China, Russia, India and Brazil combined, which stood at €45.6bn. In 2006 alone, US foreign direct investment in Ireland hit €8.4bn, which is nearly double the amount of US investment in all of South America in the same period.

The new figures come from the report Globalisation and European Countries, carried out by the Centre for Transatlantic Relations, Johns Hopkins University.

Brendan Butler, IBEC director of EU and international affairs, said the treaty would protect key national interests and also reform the EU to face the challenges ahead.

“Our ability to set our own tax policy is guaranteed along with arrangements concerning foreign direct investment. This means Ireland will remain one of the most attractive places in the world to invest,” he said.

The treaty will enable the EU to respond faster to the new challenges ahead, such as energy security, the rise of India and China as economic forces and climate change.

“Our relationship with US business is of critical importance. The US remains the principle source of foreign direct investment in Europe,” added Mr Butler.

There are currently 470 US companies operating in Ireland, which provide over 95,000 jobs. These firms set up here because of our favourable tax rates, access to an EU market of 500 million customers and a well-educated English-speaking workforce.

“A ‘no’ vote would create uncertainty and send a very worrying signal back into the boardrooms of American companies, where decisions are made about future investment in Ireland,” concluded Mr Butler.

Article courtesy of the Evening Echo