Ireland’s Future Growth Depends On Change In Economic Strategy, Says Report

by Jason Gorringe, Tax-News.com, London

08 July 2004

An economic report published in Ireland on Tuesday has suggested that the government supplement its reliance on low tax policies by fostering growth and concentrating on training, research and development.

“The report acknowledges the tremendous economic success which this country has enjoyed over the past decade,” commented Minister for Enterprise, Trade and Employment Mary Harney following the publication of the Report of the Enterprise Strategy Group.

"But critically, the Report also highlights our weaknesses and our failings and demonstrates that we cannot hope to succeed in the future if we become complacent about the past,” stated Harney, who appointed the strategy group.

Pointing to the recent downward trend in tax rates in the new EU member states of Eastern Europe, the report warned that Ireland may eventually lose its long-held advantage in terms of attractive tax rates and thus must begin to improve other areas of the economy to attract investment.

“The key message above all is that we must adapt and develop our strengths if we are to succeed in tomorrow’s knowledge economy,” observed the Tánaiste.

She added: “Ireland’s economy has performed exceptionally well over the last decade and we have built a world class reputation across a range of technologies. The challenge now is to maintain and grow this performance."

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