Corporate tax rate vital in terms of attracting investment, says Martin

IRELAND WILL veto any attempts to introduce a harmonised corporate tax rate within the European Union, Minister for Enterprise Micheál Martin said yesterday.

Mr Martin said that it was Ireland's attractive corporate tax regime together with its pool of skilled labour that gave it a competitive edge regarding inward investment across a whole range of sectors.

"Our corporate tax rate is vital in terms of attracting investment in. It's as important as the skills issue and when you put the two together, it gives us a competitive edge in terms of winning investment," said Mr Martin.

"We will be opposing resolutely the introduction of any such harmonisation tax. It hasn't surfaced yet at any political level in Europe but we've made it very clear that we will veto any such move."

He was speaking at the official opening of a new 1,850sq m (20,000sq ft) premises for the US company, Cognex Corporation, which is the world leader in the supply of machine sensors that gauge, guide, inspect, count and identify products on fast moving production lines.

The new IDA Ireland-supported facility at the Gateway Business Park, Cork city, will become the firm's base for shipping Cognex products to customers in Europe, Asia and Japan which account for approximately two-thirds of the company's business.

Cognex chairman and chief executive Robert Shillman said the company, which employs 800 globally, had come to Cork some six years ago in order to provide a more responsive service to its international customers. It employs 39 at the new facility.

Dr Shillman praised Government policy on corporate tax and IDA Ireland for its assistance in helping develop Cognex expand its Irish operation over the past six years and he urged the Government to continue with its pro-business policies.

"A key element of our decision to come here was better tax rates. The Irish Government has this philosophy of lowering the corporate tax to attract companies to do business here and that's why many colleagues came here with their businesses," he said.

"I looked at their financial statements and I said there's no reason why I shouldn't come here and then the whole process of coming here was made easy by the IDA. They deal with all the issues - their attitude is 'we're going to help you' and they're genuine about that."