Sir, – As we all know, foreign direct investment (FDI) has been the major plank of industrial policy over the last 60 years. The IDA has used the low corporate tax rate to attract the most forward-thinking of multinationals, mainly American that have created high-skilled and well-paid jobs in Ireland. After 60 years, the probability that an Irish worker is employed in a high-quality job is at least twice that of our nearest neighbour the UK.
In my own day job as a member of a venture capital fund we invest in US early-stage tech companies coming to Europe. They are loss-making companies for who the benefits of a low corporate tax are not applicable and yet they still choose Ireland. Why? They locate in Ireland because of the skilled workforce as well as the “can do” attitude of the Irish.
So, the “catch up” to modernisation has happened in Ireland over the last 60 years and it is now time for us all to grow up and be confident of our own strengths. We no longer need an exceptionally low tax rate to attract industrial investment be it foreign or indigenous.
The real threat to the continued growth and modernisation of the Irish workforce and consequently to the growth of the economy is the inability of Ireland to provide affordable housing for its increasing workforce. The tax debate is a distraction.
– Yours, etc,
SHAY GARVEY,
Rathdrum, Co Wicklow.