The move to a uniform 12.5 per cent corporate tax rate will help IDA Ireland in its drive to attract international services projects, the agency's new chief executive designate, Mr Sean Dorgan, has said.

Mr Dorgan, whose appointment was announced yesterday, said the pending increase in manufacturing tax rates from 10 per cent to 12.5 per cent, would not make it more difficult to attract overseas companies. He said the Government had "struck a good deal" with the European Commission on corporation tax and State aids.

He added that location, including infrastructure and workforce availability were the most important factors in winning new investment.

The IDA chairman, Mr Denis Hanrahan, said the focus will continue to shift from sheer job creation to creating more skills driven employment. "The challenge is to move industry up the value chain," he said. Mr Dorgan (47) will take over from the outgoing chief executive, Mr Kieran McGowan, on January 1st. He is currently chief executive of the Institute of Chartered Accountants in Ireland, a role he took on following a career in the public service. He also spent some time on the IDA board.

Mr Dorgan was secretary general of the Department of Tourism and Trade from 1993-95 and secretary general of the Department of Industry and Commerce from 1991 to 1993. He was also a member of the National Economic and Social Council from 1988 to 1995.

The Tanaiste and Minister for Enterprise, Trade & Employment, Ms Harney, welcomed Mr Dorgan's appointment.

The Institute of Chartered Accountants in Ireland said it was very sorry to lose Mr Dorgan.