Taoiseach: Ireland Inc still open for business

IRELAND remains open for business, despite the deepening economic depression, Taoiseach Brian Cowen told an IDA Ireland dinner in Davos, Switzerland, last night.

While visiting the World Economic Forum annual gathering, Mr Cowen said we are facing the most difficult global economic conditions in 70 years.

“We won’t be found wanting when it comes to ensuring that Ireland is well placed to meet the needs of business in the new era unfolding around us — Ireland remains well and truly open for business.”

He said being a relatively small country in global terms has been a distinct advantage for Ireland.

“Our small size means that consultation between Government and business can take place quickly and effectively, and we are nimble at adapting our policy and legislative framework when required.”

A transformation of the Irish economy was necessary for sustained growth and increasing levels of future national welfare and “innovation is the key,” Mr Cowen said.

Meanwhile, Finance Minister Brian Lenihan yesterday warned Irish tax levels were too low and unable to support the investment in public services required.

He warned of tax hikes to come while wrapping-up a two-day Dáil debate on the economic crisis which opposition leaders branded a “charade” as the Government refused to reveal its plans for dealing with the recession while social partnership talks were continuing.

“We need to broaden our tax base,” he said as he insisted 38% of workers are totally exempt from income tax, while the top 12.5% of wage earners pay almost two thirds of the levy.

Earlier, Fine Gael accused the Government of “living in fantasy land” after figures in the framework document at the centre of discussions with the social partners were described as unrealistic.

The document says that a further 120,000 people will lose their jobs by 2010, but Fine Gael’s enterprise spokesperson, Leo Varadkar, questioned this estimate.

“That is extremely optimistic in that it suggests 6,000 people per month will lose their jobs whereas currently 16,000 people per month are losing their jobs,” he told Tánaiste Mary Coughlan during the Order of Business yesterday morning.

“Based on those figures, by 2010 a further 300,000 people will have lost their jobs and 600,000 people will be unemployed, which is 20% of the population,” he said.

Mr Varadkar said last night: “It’s fantasy land stuff.”