Plan to protect jobs in US firm exodus

Enterprise Ireland has said it will need to develop “contingency plans” to protect indigenous Irish businesses if US president-elect Donald Trump moves to repatriate American multinational firms.

The prospect of a “flood of companies” fleeing Ireland was raised by an adviser to Mr Trump this week, after a pledge in the US election race that corporate taxes would be cut there.

Further doubts about the future were also raised in surprise remarks by EU Commission president Jean-Claude Juncker last night as he warned that Mr Trump risked upsetting US ties with Europe.

“We will need to teach the president-elect what Europe is and how it works,” Mr Juncker told a student audience in Luxembourg.

Intercontinental relations may be affected “in their foundation and in their structure,” he said.

His remarks will add to anxiety over Mr Trump.

Irish MEPs yesterday called for fresh economic plans for the country in the wake of Mr Trump’s election win and warned of new US firms deciding against settling here.

Sarita Johnson, manager of female entrepreneurship in Enterprise Ireland, said it was important “not to scaremonger” but also said that EI and others would be looking at how indigenous Irish companies could grow and diversify their international export markets.

On the risk of repatriation of giant American companies, she said: “We have to look at that quite seriously and how that is going to impact on indigenous companies.”

As with plans to respond to the possible impact of Brexit, Ms Johnson said trade relations with the US, as with Britain, would be maintained, but a plan would need to be prepared.

“Of course there is a concern and I think we are going to have to look at the potential impact and come up with a contingency plan around the direct effect on indirect jobs, which are in indigenous companies.

“The likes of Google, the likes of Facebook, the likes of Apple, don’t just come to Ireland for corporation tax. It is but one of the factors.”

She said areas such as the Far East and South America offered chances for Irish firms and diversification of markets would reduce dependency on the US and UK.

Ms Johnson was speaking at the second day of National Digital Week in Skibbereen.

MEP Seán Kelly said many foreign companies who had already invested here would be loath to leave, but “the one area we might suffer is with those [companies] in the US who might be thinking of locating here.”

MEP Mairead McGuinness, at an event in Athlone, said Ireland should revisit its economic policies after the US election result.

“While no one yet knows the shape Brexit will take or indeed the changes that will emerge in the US, nonetheless, we should look upon these developments as an opportunity to review and look afresh at our economic policies to see how they can be altered or tweaked to better serve a future that is not just less certain but may be changing more rapidly than heretofore.”

Fears of US firms leaving were raised by Mr Trump’s senior aide Stephen Moore, who said that when business taxes there are cut from 35% to 15% a “flood of companies” would leave Ireland and other countries. The cut was one of Mr Trump’s key election pledges.

Government agencies and the Department of Finance yesterday played down these fears. ESRI director Alan Barrett said many foreign firms were “locked in” here.

“A lot of companies move their activities, but not only based on corporation tax.”

Former IDA CEO Padraic White said foreign firms are here as a platform to the Middle East, Europe, and Africa and receive skilled staff, and support.

Finance Minister Michael Noonan’s department noted there had been calls for tax reform in the US for some time. It also noted the US political system was complex and reforms needed the consent of both houses of congress there.

The department said it would analyse any proposals for US tax reform, but it was too early to make predictions, since Mr Trump’s administration will not be in place until January.

Central Bank governor Philip Lane yesterday said it was “way too early” to assess the impact of Mr Trump’s presidency on the economy.