Client News > Release
22-07-2010
National Competitiveness Council Report cannot be ignored. American Chamber of Commerce in Ireland
Ms. Joanne Richardson, Chief Executive of the American Chamber of Commerce in Ireland has said that the underlying message from the National Competitiveness Council’s Report published today is that much still needs to be done to improve Ireland’s cost competitiveness.
“The headline news that we have regained some cost competitiveness is obviously welcome. But we ignore at our peril the very stark message of this report – that structural changes are required to ensure that we do not erode competitiveness when the economy returns to growth”.
“As far back as last January, the American Chamber openly questioned the improvements in competitiveness that were being achieved by Ireland. It was clear then and remains the case that these were as much to do with lower inflation and recessionary factors rather than real improvements in our competitiveness.
“We are fortunate that in attracting foreign direct investment our corporate tax rate off-sets the higher cost of doing business here. However this leaves us vulnerable to losing investment to countries with lower cost bases and an equally attractive or better corporate tax rate. Our favourable corporate tax rate should act as an incentive not mitigate against higher costs”.
