THE FULL impact of Ireland’s reputational “battering” will not be felt for several years, the body representing US multinationals in this country warned yesterday.
The American Chamber of Commerce Ireland’s new president, Gerry Kilcommins, said multinationals typically plan three to five years in advance. As a result, the full effect of the reputational damage caused by the fiscal and banking crises may not be felt until 2012 and beyond.
Mr Kilcommins, who is vice-president of global operations for Medtronic’s vascular business, was speaking at the 50th anniversary of the founding of the American Chamber of Commerce Ireland.
Despite Ireland’s tarnished reputation, 600 US companies continue to invest here, he said. “People who make the decisions realise Ireland has a lot going for it.”
Nonetheless, the chamber is calling on the Government to mount a campaign to repair the State’s brand overseas as a secure and successful international business hub.
“Ireland’s attractiveness for investment as a whole should be promoted as an integrated Government communications campaign, highlighting the many positives of our country.”
He praised the Government for managing to maintain Ireland’s competitive 12.5 per cent corporation tax rate, but warned that it would come under increased pressure in the future. He described the tax rate as “the jewel in the crown” in terms of attracting and holding multinational investment.
“We must be clear that overseas firms do pay their fair share of corporation tax,” he said, pointing out that 60 per cent of all corporation tax was paid by the foreign direct investment sector.
The chamber’s chief executive, Joanne Richardson, said the organisation was confident the 12.5 per cent rate would be retained.
She also noted that, although Ireland’s domestic economy was struggling, most US multinationals that locate in this country do so in order to access the wider European market and so have not been hit by the domestic downturn.
A recent survey by National Irish Bank found that almost half of the multinationals in Ireland expect to increase their exports during the next 12 months, and some 26 per cent expect to grow employee numbers this year.
According to the IDA, almost 11,000 new jobs were created in foreign-owned client companies in 2010, although 9,545 jobs were lost.
