US firms likely to create 1,000 jobs, Minister told on trade mission

More than 1,000 new jobs could be created based on commitments received from US multinationals on a Government trade mission, the Minister for Enterprise, Jobs and Innovation Richard Bruton said.

Speaking at the end of his five-day US trip, Mr Burton expressed optimism about jobs prospects after meeting 17 companies, mostly in financial services and medical devices, in Boston, Washington DC, Philadelphia and New York.

“We reckon that over 1,000 jobs could be delivered,” he said. “We expect and hope we can pull those over the line.”

Mr Bruton is the first Minister to visit the US since the Government announced the phased ending of the controversial “Double Irish” tax- avoidance measure and plans to lower tax rates and create fresh incentives for intellectual property and R&D in a “knowledge box” scheme.

Explain changes

He will visit the US again later this month, travelling to the west coast and the Chicago area, to explain the tax changes to Silicon Valley firms and other businesses, including those with Irish subsidiaries.

The 17 east coast companies he met on this week’s IDA-led trip, included businesses with operations in Ireland and multinationals who might set up Irish operations, reacted positively to the changes, he said.

“Ireland is capable of winning more new business in the post-budget scenario,” he said.

The US companies recognised the international tax environment was changing and welcomed the Government’s decision to act.

“Companies want certainty above all and the recent focus on the ‘double’ structures have created a level of uncertainty, so we have moved out ahead of that,” he said.

“We have committed to certainty not only in terms of a long lead-in time during which companies can restructure their arrangements, but also we have shown very clearly that we are going to be in a very competitive position,” he added, referring to the new tax proposals.

Mr Bruton said he was not concerned about Apple’s warning to shareholders that it might have to pay Irish back-taxes as a result of the European Commission’s State aid investigation into the company’s contentious low-tax arrangements in Ireland.

“No doubt the company feels it prudent to signal this in its accounts,” he said. “That would be standard accounting practice in such situations.”

Among the firms Mr Bruton met this week were Pennsylvania medical device maker Teleflex, which said it will create a further 100 jobs in Athlone, bringing its Irish workforce to more than 400.