Ireland is getting too expensive for business and needs to improve competitiveness to attract more foreign multinationals, the head of an American business association has claimed.
The American Chamber of Commerce said the country should be proud of its economic boom but warned it was losing potential investment because of spiralling costs such as energy and transport.
The chamber's new president, Jim O'Hara, said: "Ireland is politically stable, pro-business, open economy. But we are continually moving up the cost league table and some of our traditional advantages have been eroded."
Mr O'Hara, who is general manager of Intel Ireland, called for better post-primary education, better research and development and increased broadband coverage.
The chamber said the Government was clearly addressing many of these challenges in its Strategy for Science Technology and Innovation, Transport 21 and the new National Development Plan.
"However we need a great sense of urgency in addressing all of the components that make Ireland an attractive place to do business," added Mr O'Hara.
More than 600 US multinationals employ 100,000 people in Ireland and a further 225,000 indirect jobs are supported by US companies. Last year, US firms paid more than €2.4 billion to the Irish Exchequer in corporate tax and €13 billion on wages and on goods and services.
In a survey by the chamber of 50 multinationals based in Ireland, 75 per cent said their international colleagues commented negatively on the cost of doing business here.
Mr O'Hara suggested that more competition in the electricity and telecoms markets would deliver lower prices for firms.
PA