TAOISEACH'S VISIT:Taoiseach Brian Cowen met senior executives from 14 foreign firms which between them have invested $14 billion (€10 billion) and employ 15,000 people in the Republic, at a dinner hosted by the IDA at the World Economic Forum in Davos, Switzerland, last night.
Mr Cowen said that another 14 foreign companies, which the IDA was encouraging to invest in Ireland, also attended.
“Despite the difficulties we are having – and 2008 was a difficult year – over 130 new industries were brought to Ireland, and we want to keep that foreign direct investment coming in and keep marketing Ireland,” he said.
Mr Cowen said that, while the State’s profit and loss account had weakened, the Government would make “whatever adjustments are necessary”. “It is a question of showing that Ireland is very anxious to continue on a successful path while dealing with the very severe difficulties that we have to contend with,” he said.
IDA chief executive Barry O’Leary said that about two-thirds of the companies attending the dinner were US firms, the remainder European.
Mr Cowen declined to say how the Government might broaden the State’s tax base following Minister for Finance Brian Lenihan’s comments to the Dáil yesterday that, if savings of €4 billion in the public finances were to be achieved next year, some of this would have to come from taxation.
The Taoiseach said that the reduction of more than €8 billion in tax revenue last year meant that savings on State spending and public service reforms were required. “It will also require some taxation measures, that is clear, but we will make those decisions at the appropriate time,” he said.
The Taoiseach said that he had been kept up to date while travelling to Switzerland on the continuing talks with the social partners in relation to cutting €2 billion from public expenditure. “Things are going well. The engagement is sincere, deep and constant. We will keep at it,” he said.
Speaking as world political and business leaders met at the annual Davos forum amid the global economic crisis, Mr Cowen said that there was “nowhere to hide for any country” from the crisis.
He made his comments after the Central Bank released figures showing that the economy would contract by 4.7 per cent and unemployment would average 9.4 per cent this year.
Asked whether these figures would make it harder to sell Ireland to potential foreign investors, Mr Cowen said: “There will be no bad mouthing of Ireland as far as I am concerned. We are going to fight for every job we can and continue to put our best foot forward.”
Mr Cowen said he would this morning meet Fredrik Reinfeldt, the prime minister of Sweden, which takes over the EU presidency in July, to brief him on the Government’s progress on Lisbon.
Mr Cowen said he would also discuss with Mr Reinfeldt how Sweden rescued its banking sector in the early 1990s. “Obviously we have lessons to learn from all of these issues,” he said.
The Taoiseach will also participate in a private discussion on the global economy with other government leaders tomorrow. He will return to Ireland later in the day.
