Kenny defends tax policies but Ireland ‘can’t let guard down’

Enda Kenny moved to defend Ireland’s generous corporate tax policies as he mixed with world leaders at the Davos economic forum yesterday.

The Taoiseach assured Facebook’s chief operations officer Sheryl Sandberg that the 12.5% rate would not be shifted.

He also used the gathering of global political and business players to stress exiting the bailout did not mean Ireland could let its guard down.

“Just because we’ve exited the bailout doesn’t mean we don’t still have hills to climb — we have, and many of them are really challenging.

“When we came here three years ago, there was a spirit of disillusion and despair. This year it is a very different situation.

“Our people have always been pragmatic, we’ve always been productive, and never afraid of hard work. And I believe that the story of Ireland in the last three years is a story we intend to continue.”

He avoided controversy of the kind that engulfed him at Davos two years ago when he said the economic collapse had been due to Irish people having gone “mad” with money, but Sinn Féin leader Gerry Adams criticised remarks in which Mr Kenny said young people were partly emigrating for experience.

“His comments in relation to emigration and the reasons why people leave our country are completely irresponsible and show a lack of empathy with those who have been forced to leave Ireland as a result of the policies he has implemented,” said Mr Adams.

At a debate on restoring European competitiveness when Mr Kenny was asked if Ireland’s apparent success could be applied to Europe as a whole, he referred to the Haddington Road Agreement.

“I actually got all of the trade unions in the country to back it, which would give millions of hours of extra work with no increase in pay, no increments, up until 2016,” he said. “A remarkable achievement that people themselves were able to see in a pragmatic sense.”