Competition in key areas vital

Increased competition is needed "as a matter of urgency" in a number of key sectors if Ireland is to continue to attract inward investment, the newly elected president of the American Chamber of Commerce has said.

Mr Ciarán Ennis, head of marketing at IBM's European sales and marketing centre in Blanchardstown, Co Dublin, said increases in the cost of telecommunications, utilities, insurance and transport over the past 18 months has made Ireland "an expensive place to do business".

He said the Government should "state clearly" its commitment to take on board the recommendations of the National Competitiveness Council, which reported last November.

"This will send a signal to business that the Government is willing to address the cost base."

Mr Ennis, who took up the one-year post as president of the chamber this month, said he would be lobbying on a number of other issues in 2004, including the retention of Ireland's "favourable corporate tax regime" and the provision of "genuine" incentives to companies investing in research and development.

Despite the warning over costs, he said Ireland should be confident of winning new high-value international projects.

Of 110 US companies surveyed by the chamber, 66 per cent said they expected to maintain or increase jobs over the next 18 moths, while 60 per cent said they would maintain or increase investment.

He added that, while EU enlargement would increase competition for inward investment at the lower end of the scale, its impact on Ireland could be more muted than many anticipate.