Business Leader Calls On Ireland To Maintain Competitive Edge

by Jason Gorringe, Tax-News.com, London

26 January 2005

Eoin O´Driscoll, the newly-elected President of the American Chamber of Commerce in Ireland, has urged the Irish government to maintain its policy of low taxation and to remove barriers to trade and investment if the country is to remain a “location of choice” for US firms.

"Winning in an global economy, where the pace and intensity of competition is increasing at a dramatic rate, will require that we continue to build on our proven strengths,” commented Mr O’Driscoll.

However, he went on to warn that Ireland must reduce its cost base if it is to remain competitive.

"The cost of doing business in Ireland has risen dramatically in recent years. To balance this, we must encourage greater competition as well as embracing technology to improve productivity,” he observed.

Mr O´Driscoll hoped that the recent extension of Ireland’s corporation tax rate would provide new opportunities for growth.

“The recent extension of the 12.5% corporation tax rate to all traded activities allows companies to target new opportunities across a wide range of service sectors and activities," he noted.

"Recent success in attracting e-business related services illustrate the significant opportunities available,” O'Driscoll added.

Two notable examples of this are the leading internet search engine Google, and online retailer Amazon, which have both recently announced the launch of new operations in Ireland.

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