McCreevy says No Vote would cost Ireland jobs

FINANCE Minister Charlie McCreevy said it is inevitable that Ireland will lose jobs and investment if the Nice Treaty is rejected.

He said corporations would see a No vote as a sign that Ireland was lukewarm about its participation in the EU and this would add uncertainty into investment decisions.

Mr McCreevy said major companies had been attracted to Ireland largely because it was seen as pro-European and pro-business.

"We need to show that we're prepared to play a central role in the decision-making process in Europe. Ireland cannot afford to send a signal to investors that this is no longer the case," Mr McCreevy said.

"We need to attract further investment for our economy to continue to prosper and for our school-leavers to secure high quality employment at home."

Mr McCreevy, speaking at a special pro-Nice meeting in Dublin's Irish Financial Services Centre, also said Ireland would continue to have autonomy over taxation decisions if the treaty is ratified.

He also confirmed the Government is to push ahead with plans next year to cut corporation tax to a record low of 8.5%, despite difficulties with the public finances.

At the same meeting, former EU commissioner Peter Sutherland said rejection would cause a "short-term mess of serious proportions".

"Let us be realistic and not fool ourselves. There is a price for throwing a spanner in the works. We are now challenged to vote for or against a treaty that for many Europeans did not go far enough and yet we, uniquely, have an argument that it went too far," Mr Sutherland said.

"Even the greatest Eurosceptics historically, such as the British and the Danes who have opted out of the single currency, apparently have no difficulty with the Nice Treaty," he added.

Separately, the Progressive Democrats, which are campaigning for a Yes vote, sought to calm fears over what will happen to Ireland's voice in Europe if there is a Yes vote.

PD Junior Minister Tom Parlon said Ireland would continue to have the same right as every other member state, large and small, to appoint an EU commissioner. He said changes were being made in the appointment of commissioners solely and exclusively to make the EU Commission work well with 27 member states.

"It's in Ireland's interest to have a Commissioner and a European Union that works effectively."

"None of these changes would be made if the Nice Treaty represented a power grab by large countries, as falsely alleged by No campaigners," he said Mr Parlon said.

"In fact, only the big countries are losing if anything in relation to the commissioners. Britain, France, Germany, Italy and Spain have agreed to give up their second EU commissioner from 2005," he said.