Southern jobs ‘unaffected’ by North’s corporate tax change

Potential changes to Northern Ireland’s corporate tax regime will not damage a government-backed initiative to bring jobs into the Republic, the head of Connect Ireland has said.

Speaking after announcing the 1,000th job to come into this country as part of the two-year-old diaspora-linked campaign, and as more than 200 other jobs were announced outside the project, group chief executive Michael McLoughlin said he does not believe the mooted policy change will impact here.

Under plans being considered by Westminster, Northern Ireland’s Stormont government may be allowed to decide its own corporate tax rate if it can make up the difference elsewhere. It has been suggested the change could see the North’s corporate tax regime reduced to below the 12.5% level here — down from 20% — a move that could make this jurisdiction less enticing.

While the Connect Ireland initiative was set up to help the Irish diaspora convince foreign firms to set up here, our attractive tax system also plays a major role. Despite accepting that any possible Northern Irish changes could impact on the project’s success, Mr McLoughlin said other factors are likely to protect the campaign.

“Our campaign is about identifying connectors, so Irish people abroad in touch with companies that may want to set up here. They are selling Ireland and part of that is our corporate tax rate, but that’s just one of a number of factors,” he said.

Mr McLoughlin was speaking at the launch of 39 jobs through the Connect Ireland initiative, which since being set up by chairman Terry Clune in 2012 has brought 1,000 jobs and 36 foreign companies here.

The latest employment boost includes 20 positions at e-commerce firm Eyefinity Europe and 19 at plastics separation and cleaning group Clearplas Ireland. They came on the same day as restaurant Nando’s, software firm Calypso Technology and synthetic diamonds group Element Six announcing more than 200 other roles in announcement unrelated to the campaign.

Connect Ireland pays any Irish person abroad €1,500 if they can convince a company to set up a branch here. It plans to bring in a further 1,000 jobs in the next three to five years.

Taoiseach Enda Kenny said successful initiatives like this help to bring renewed hope for people who want to work and live here.

Latest figures show 352,647 people on the live register in November, down 10% on this time last year. At 10.7%, unemployment is now at its lowest level since 2009.