Intel commitment proves Ireland still a good place to do business, says Ahern
He was speaking at the opening of the €1.6 billion extension to Intel’s Leixlip plant in Co Kildare where the new FAB 24 plant was officially opened.
The new facility is the most technologically advanced semiconductor manufacturing plant in the world, building multi-core microprocessors and is the first of its kind outside the US, the company said.
The Government was prevented from giving the company a grant of €170m for the new plant, when the EU said it would have to carry out an 18 month review of the funding. Intel decided to go ahead without the government grant aid.
Meanwhile, other Intel projects have gone elsewhere and IDA boss Sean Dorgan pointed out that recent Intel investments had gone to Arizona and Israel. For some time economists have been warning that the rapid rise in Irish wages due to full employment is undermining competitiveness and jobs continue to be lost to Eastern Europe and Asia as multinational firms follow the low-cost trail.
Further concern for the competitiveness of the economy surfaced last week as the latest export figures showed a sharp fall in April.
Both Davy Stockbrokers and Alan McQuaid of Bloxham Stockbrokers said the emerging trade figures for the year to date suggest a serious loss of economic competitiveness on international markets.
Exports fell 10% in April 2006 while imports were down 12% compared to the previous month.
Unadjusted exports stood at €6.850 billion in April, down 11% on the same time last year, while imports by value were down 8% to e4.671bn.
Meanwhile Mr Ahern said the Irish economy would grow by 4.8% this year, more than double the 2% rate forecast for the rest of Europe. That figure is below other growth projections for this year of over 5%.
