Yes vote critical to investment, says IDA

INVESTMENT:A YES vote in the Lisbon Treaty is critical to attracting future foreign direct investment, the government agency responsible for attracting foreign companies to Ireland said yesterday.

In a statement, the Industrial Development Agency (IDA) said Ireland’s membership of the EU had played a “key role” in persuading almost 1,000 foreign direct investment (FDI) companies to invest in Ireland, creating over 150,000 jobs in the process.

“IDA Ireland has a unique insight into FDI companies’ requirements and is acutely aware, based on strong client feedback, of the importance a Yes vote will have on the future of foreign direct investment and jobs,” the chief executive of the IDA, Barry O’Leary, said yesterday.

Mr O’Leary said the single European market, whereby companies based in the Republic could sell their goods and services throughout the EU, had been one of the major factors enabling Ireland to secure a “disproportionate amount of US greenfield investment.

“Any threat to the continued efficiency of that market would be viewed negatively and be detrimental to future investment prospects,” he said.

On the subject of Ireland’s 12.5 per cent corporate tax rate, he said Ireland will retain control of its tax rates under the Lisbon Treaty.

“The tax rate is fully compliant with the provisions of all EU treaties and nothing in the treaty changes that position.”

He said the treaty provides for a continuation of the current status and any changes that might affect the tax rate can only be taken by “the unanimous vote of all member states”.

He said Ireland retains its veto in tax matters, “thus maintaining international business confidence.” Mr O’Leary said the ratification of the treaty is crucial from a business perspective.

“The ratification of the Lisbon Treaty will enable a dynamic single European market to function properly. It will position Ireland to win high quality foreign direct investment, providing well paid jobs and ensuring a future for generations to come.”

According to the IDA, companies backed by the State agency spend €16 billion per annum in the Irish economy, with the value of exports from IDA-supported companies in Ireland currently standing at €92 billion.

Foreign direct investment companies spend €6.7 billion in payroll annually, employing 150,000 people directly, and an additional 200,000 in the wider economy.

These companies also contribute almost half of the State’s corporation tax take.