Obamamania - Last Laugh May be on Ireland!
Apprehension in Moneygall?
In the frenzied Obamamania which gripped the Irish academic, media and political establishments, somebody should have counselled . . . Be careful what you wish for!
Firms sorry they came to Ireland
Survey reveals discontent of multinationals with high costs and poor infrastructure
Survey reveals discontent of multinationals with high costs and poor infrastructure
By JODY CORCORAN EXCLUSIVE
Sunday November 09 2008
Sunday November 09 2008
Almost half of the foreign companies based here say they would not choose Ireland again if they were to decide now on where to locate their existing businesses, according to secret research conducted by a government agency.
The confidential study, which has been seen by the Sunday Independent, reveals that the vast majority (61 per cent) of these companies would locate in Eastern Europe instead, while almost a quarter (23 per cent) would go to India. The revelation that so many foreign companies are unhappy in Ireland is causing alarm in Government circles at a time when the global economic crisis is expected to worsen.
The worrying findings are contained in an unpublished report, which was prepared for IDA Ireland earlier this year but which has only now been released in heavily censored form.
The mainly US and European companies, which employ tens of thousands of people here, have cited the high cost of doing business in Ireland and poor infrastructure as among their reasons.
IDA Ireland is the government agency with responsibility for securing new investment from overseas in the manufacturing and internationally traded services sectors. It also encourages existing investors to expand and develop their businesses. The IDA, with consultants Behaviour & Attitudes, interviewed executives from 97 companies, which represents 18 per cent of the client portfolio of 538 eligible companies. The results of the survey were released under the Freedom of Information Act to Fine Gael's enterprise spokesman Leo Varadkar. But it was heavily censored before it was released, with the identities of the companies surveyed removed. Yesterday Mr Varadkar said the findings exposed the Government's "complete inability to maintain competitiveness".
Findings in relation to positive developments in the Irish business environment were released, but an entire section on negative developments was removed. While Ireland's skills base and low tax policy were seen as positive, it is possible to establish from the results which were released that transport, telecoms and broadband infrastructure is a huge source of discontent.
However, the "high cost environment" in Ireland, particularly wages and utility costs, has also convinced 45 per cent of those surveyed that they would not locate again in Ireland; 49 per cent said they would choose Ireland again and 5 per cent did not know.
Foreign direct investment in Ireland amounted to a massive €130bn in 2007, according to new figures just released by the CSO. That investment is expected to slow rapidly as the global economic crisis continues.
If US president-elect Barack Obama acts on his promise to provide a range of incentives and penalties designed to force US companies to create jobs at home, rather than abroad, then Ireland will really suffer. Not only would Ireland have to contend with a big slowdown in new foreign direct investment from the US, but a considerable amount of that already here could be put at risk.
The key elements of the Obama platform causing concern here are his plan to give US companies a tax break for every job created at home and more importantly, his promise to use the tax code to eliminate the advantage that countries like Ireland have in attracting foreign investment.
Ireland actively seeks foreign direct investment and offers grants and tax incentives to attract investors. Direct investment plays a unique role in the Irish economy, accounting for a larger part of its manufacturing output, employment and exports than in other OECD countries.
The cost of attracting foreign investment has come under greater scrutiny and questions have been raised about whether too much emphasis has gone to promoting foreign investment and not enough to developing local enterprises. The Government is trying to address this by helping local businesses develop greater links with the international sector, and has reorganised its industrial development programme.
Yesterday, Mr Varadkar said: "While the IDA is one of the Government's most effective agencies -- it has brought tens of thousands of jobs to Ireland -- it's clear that they are swimming against a tide of bad policy decisions.
"The key message from the Government at the moment is that we must prepare to take advantage of an upturn. But from this survey it is pretty clear we are not in a position to do that, particularly because of poor infrastructure and high costs."
- JODY CORCORAN
EXCLUSIVE
1 comment:
Looks like the Irish will be hammering America's shores again once the Celtic Tiger is de-clawed, which is in the process. Remember, these are the same Irish that left Ireland 15-20 years ago for the U.S. when things were better in America, went back to Ireland when the Tiger was roaring, and now will come back here once again. These gypsies are not like the pre-1970 Irish, who were proud to be Americans. Many of the new Irish openly mock America. What a shame how America is used.
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