Inward investment is transient - Home economy

THE news that US pharmaceutical giant Pfizer and the Dublin-based multinational Allergan have scrapped their $160 billion merger may not be of immediate interest to most Irish people — but it should be.

The reason is that the United States Treasury has introduced rules to curb so-called ‘inversion’ deals that, up to now, allowed major industries cut their tax bills by setting up shop abroad. The merger would have allowed New York-based Pfizer to cut its tax bill by relocating its HQ to Ireland.

Ireland has for years been a favoured destination for big US companies because of low corporation taxes, and we should not kid ourselves that it is because of our highly educated population and EU membership, though these factors help.

Encouraging this form of foreign direct investment makes Ireland particularly vulnerable because, while it is welcome, it is transient. Our success in attracting foreign multinationals may have reached its peak, which is why any future government should instead place greater emphasis on homegrown enterprises to fuel our resurging economy.


Lifestyle

Incarcerated in Auschwitz and other Nazi death camps Zuzana Ruzickova somehow survived and went on to create the complete recordings of her beloved Bach, writes James Lawless.Book review: Nazi horrors replaced by brutal Soviets for piano player

The Menu was delighted to make recent mention of a new UCC postgraduate diploma in Irish food culture and is equally pleased to announce availability of two new bursaries for same.The Menu: Food news with Joe McNamee

George Orwell’s classic novel foretold a lot, but the manner in which we’ve handed over our personal data to faceless corporatocracies is doubleplus-ungood, says Suzanne Harrington.How we sleepwalked into George Orwell’s nightmarish vision

Esther N McCarthy has her eye (and ear) on party speakers for your BBQ, spots a rug that’s out of this world, and revels in all that’s on offer for Heritage Week and Cork Craft Month.Your interiors wish list: Party speakers, Heritage Week and Cork Craft Month

More From The Irish Examiner