THE FISCAL treaty will not affect the State’s low corporate tax rate or impose other extra costs on multinationals, Taoiseach Enda Kenny told executives from US companies operating here yesterday.
Speaking at a debate hosted by the American Chamber of Commerce Ireland, which represents most of the big US investors in the Republic, Mr Kenny said a Yes vote in tomorrow’s referendum would signal that the State is committed to long-term economic stability and growth.
He also reassured representatives of US multinationals that the treaty would not affect the Republic’s 12.5 per cent corporation tax rate, which is one of the State’s main selling points to investors.
“There is nothing in this treaty about corporation tax and there is nothing in this treaty about financial transaction tax,” he said, adding this was a myth that some elements of the No campaign had been peddling over the last three weeks.
Mr Kenny also warned that member states which do not ratify the treaty will not be able to access European Stability Mechanism funds, while those that do will be able to do so, if they need funding.
He pointed out that this could mean the difference between borrowing money at 3 per cent and 7 per cent.
The Taoiseach added that every percentage-point saving on interest rates would mean that the Government would have more cash to pay for public services.
His Cabinet colleague, Minister for Enterprise, Jobs and Innovation, Richard Bruton, said that during the first quarter of the year, US multinationals revealed investment plans that will create 4,000 jobs.
In addition to this, Mr Bruton said that these investments would also create around 1,500 construction jobs and open up opportunities for the supply of goods and services to Irish companies.
According to American Chamber of Commerce Ireland figures, US multinationals are responsible for more than €100 billion worth of exports every year and employ more than 100,000 people directly.
They contribute €4 billion in taxes to the exchequer and spend €16 billion on wages and services.
