THE IDA (Industrial Development Agency) has put a team in place in the US to lobby Barack Obama on tax issues should he become president.
Mr Obama has previously said he wants to keep jobs in America and would look at taxing firms that move jobs abroad. This would be bad news for Ireland as it has always managed to win massive investment from the US as a result of its low corporation tax rate of 12.5%.
IDA chairman John Dunne said that in a US election candidates can talk one way but eventually act a different way.
Mr Dunne said Ireland’s reputation has been damaged internationally as a result of the rejection of the Lisbon treaty.
He also said there is no question that Belfast, as a location for business, will be a bigger issue in terms of competition for Ireland Inc as time moves on.
“Cork is still getting its fair share of investment and it can certainly develop itself as a city that makes it attractive to sell to investors,” said Mr Dunne.
He was speaking at the Cork Chamber national conference yesterday.
Speaking on the budget, Minister for Foreign Affairs, Micháel Martin said that confronted with tough economic challenges the Government had to make difficult choices. “These choices were necessary to provide confidence in our economy at both national and international level and to bring stability and certainty to the public finances. ,” he said.
Also speaking at the conference was AIB chief economist John Beggs who said oil could fall to about $30 (€23) a barrel by the end of next month. He said that although the dollar has started to improve there will not be a continuation to this trend as the US has yet to officially enter a recession.
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