Health firm chief confident over corporation tax rate

THE US-based chief of one of the world’s leading eyecare product manufacturers has expressed confidence the Irish Government will “do the right thing” and maintain the current level of corporation tax.

Bausch & Lomb chief executive Brent Saunders said he was “supremely confident” the government understands the importance of not increasing the 12.5% rate because of its attractiveness to multi-national companies.

Speaking during a visit to Waterford, where the company employs 1,100 people and is investing US$100 million (€70m) in extra production lines, Mr Saunders said the two principal attractions for locating in Ireland are the corporation tax and the labour force.

“I think we remain very confident that the tax rate will stay where it is and the government will understand that is the key to the future.”

“Most American CEOs I’ve spoken to, that have investments here in Ireland, are fairly confident that the right thing will be done and the government here will continue to understand the importance of foreign direct investment for this country.”

Ireland’s tax rate for businesses has become an issue at EU level during the government’s discussions with European leaders regarding our economic future.

Up to 100 people will be employed at Bausch & Lomb in Waterford during construction of a 4,000 square-metre extension to the facility, while long-term the new investment is expected to consolidate the company’s permanent employment level of 1,100.

The US-based multi-national, which has had a presence in Waterford since 1970, announced job cuts of 120 in July of 2009 but says that its latest round of investment represents a vote of confidence in the Irish facility.

Developments will include new production facilities, storage areas, delivery facilities, a plant room and space for future expansion.

The company is applying to Waterford City Council for planning permission for the extension to the facility which already covers more than 28,000 square metres at the IDA Industrial Estate on the outskirts of the city.

The concentration of production in Waterford and the company’s Rochester base in the US comes at the expense of Livingston in Scotland, where up to 500 people are losing their jobs because of Bausch & Lomb’s decision to “consolidate” its three manufacturing sites into two.