Apple warned the Government of “aggressive competition” from other countries trying to lure multinationals away from Ireland during a high-level meeting this summer.
The tech giant flagged what was described in Government notes of the discussion as “a very real threat to Ireland”.
Apple raised concern about infrastructure issues in Cork, where its European headquarters is located, saying it is “hindering” growth plans and it also highlighted delays securing work visas for staff.
The meeting between Apple’s vice-president of European operations Cathy Kearney and Minister for Enterprise Peter Burke took place in June as the final outcome of the long-running Apple tax case saga was awaited.
The European Court of Justice this week ruled in favour of the European Commission in its bid to make Apple pay €13 billion in back taxes to Ireland.
A spokesman for IDA Ireland – which had a representative at the meeting in June – said the case was not discussed during that engagement in Government Buildings.
A Department of Enterprise note of the meeting – released under the Freedom of Information Act – shows that several other issues were raised by the Apple representatives in attendance.
It says Ms Kearney congratulated Mr Burke on his recent appointment as Minister and “gave an overview of the company, its facilities, investments and growth plans both in Ireland and globally”.
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Is an award of €13 billion a big win or an embarrassing loss? The European Court of Justice (ECJ) court yesterday said that the European Commission was correct in 2016 when it ruled that Apple owed Ireland €13 billion in tax relating to underpayments during 2003-2014.The ruling represents a heavy legal defeat for Apple and the Irish Government – and a major win for the EU.But how did it get to the point that Ireland had to go to Europe to defend a tax arrangement with a multinational? Irish Times columnist Cliff Taylor explains how a big pay-day for the Government is also a reputational hit, with the court’s clear and final verdict that Ireland broke the rules and offered illegal State aid to Apple. And he looks at how to spend it. Presented by Bernice Harrison. Produced by Declan Conlon.
The Apple side is said to have told the meeting: “Globally there is aggressive competition from countries trying to secure large multinationals, such as Apple, to relocate from Ireland to their shores.”
The next sentence is redacted and the note continues: “This is a very real threat to Ireland with Apple Finance areas looking into the prospect of moving staff. Due to digitalisation this type of reorganisation is much easier to do.”
Apple declined to comment on this, and the meeting in general, but pointed to its more than four decades in Cork, the more than 6,000 people it employs there and the construction of a new facility for 1,300 employees due to open next year.
According to the meeting note, Apple also raised how “the slow progress regarding the public infrastructure in Cork is very worrying and hindering Apple growth plans”.
The document says: “The current roads network is not sufficient to enable 6,000 Apple employees on their daily commute and is also a struggle for the residents, with traffic and transport situation being so bad.
The meeting heard “an adequate bus service is also required”.
[ We should be embarrassed about the Apple ruling but not for the reasons you thinkOpens in new window ]
Separately, Apple is said to have welcomed a Government announcement that immigration administration functions would move from the Garda to the Department of Justice in relation to non-EU nationals living in Cork and Limerick.
The meeting note says: “Due to large delays in securing visas for staff, the company had many issues with WRC [Workplace Relations Commission] inspections” and that the announcement “should resolve this in future”.
According to the note Mr Burke told the Apple representatives that Ireland “is a great place to do business, with a competitive tax landscape, R&D investment incentives and Government are looking to keep improving in these areas”.
Mr Burke said “the Irish Government has always supported Apple and will continue to do so as they are a key employer”.
He asked Apple to send examples of the issues it highlighted and said his officials “will ensure their concerns are brought to the direct attention of the relevant personnel”.
Mr Burke also said he would “follow up” with Government colleagues on issues outside his Department’s remit.
Separately, on Wednesday Taoiseach Simon Harris said the Government needed to hold a discussion on the most appropriate way to use the €13 billion windfall from the Apple tax case, suggesting it could be targeted towards infrastructure and housing.
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