Irish businesses to lobby against EU tax harmonisation

BreakingNews.ie - 24th April.

"*Irish businesses are to lobby the European Commission today against proposals for a harmonised corporation tax rate across the EU.

The move has been suggested in order to level the playing field when it comes to attracting foreign companies to invest in the EU.

Ireland’s 12.5% tax rate is among the lowest in the EU and is the reason why many multinationals choose to locate in Ireland.

A delegation comprised of Fianna Fáil MEP Eoin Ryan and Irish business representatives are due to meet the EU taxation commissioner today to outline their objections to harmonisation.

They claim it would undermine Irish sovereignty and seriously damage the Irish economy."*

If the corporation tax rate goes up in Ireland then that would definitely be game over.

Yes, yes that would definitely do it all right!

Trouble is the game is up already.What’s been happening in the country over the past year has focused a huge number of people’s minds.Too many people are very concerned about job security and are looking over their shoulders wondering whether they are going to be next for the chop.

They have been taking a long hard look at the economy and they don’t like what they see.It’s common knowledge at this stage that it’s just a house of cards and this has knocked the stuffing out of CONFIDENCE -thats the key word.

The property market hinges on confidence and once this plummets so does the market and by God has confidence plummeted.There are just too many factors working against us at the moment and I can’t see that situation improving any time soon, if anything it’s going to get worse especially once the election is out of the way…

The fact of the matter is that we were on the pigs back for far too long and too many people thought it was never going to end.

Don’t scare me, I work for Intel. If they get there wish then Intel would invest a lot less in the Irish company :frowning:

Speaking of Intel, I heard an interesting rumour today (could be absolute rubbish of course).

But the rumour was that some Intel engineers were being offered a 20% salary increase + about 10k expenses to relocate to China for two years to carry out staff training there.

Reminds me of the rumours that were floating around a few weeks back that the Dell employees were being offered similar carrots to relocate to Poland for a while.

I haven’t heard anything to the effect.

But it is likely that people will go over to do training, due to China not providing security for intellectual property etc they will only be privey to old technology. So they wouldn’t be able to see much in any of the new fab in order to train in Ireland or the states.

About the incentives I don’t know.

Intel are commencing construction on a new $2.5Billion green field site in north west China later this year (Fab 68…so no expansions for Leixlip). They are currently in the middle of construction of their latest Fab in Israel.Some of the Fabs in Leixlip will be nearing the end of their usable lives soon.Dell,also one of the biggest employers in Ireland are currently building a 1million square ft plant in Poland,due for completion next year…watch this space.

IMHO …

Ireland will never have to deal with a harmonised EU tax regime. If the EU ever gets around to concocting a set of circumstances that allows it to get such a proposal through, the first country to leave the club will be the UK, that’s pretty much a given. After that it’s a complete no brainer for Ireland to follow suit.

There would be absolutely no reason for Ireland to remain in the EU with a harmonised corporate tax. In such a situation, on balance, leaving would have more benefits. Stepping back to (a possibly englarged by UK membership) EFTA would seem a logical step were it to happen.

Can’t see it happening. There is no impediment to any country currently in the EU lowering it’s corporate tax leves today if they want to … they just don’t want to.

“vive le difference”

Blue Horseshoe

No need to be so drastic, I goes in swings and roundabouts, We are currently on our second generation of running the latest product. While we continue to run these product to end of life other fabs will ramp up the new technoligies for 2 generations. After that it could be passed down to us again. Also bare in mind that the main selling CPU chip is not the only product, we will be running other products for may years to come.

I’m in no major panic for this factory for a long time yet. There is nothing wrong with factories usable life.

However things like capital gains and problems in the market may cause a risk to Intel investing in ireland for the neweset generations of technoligy in the future.

Yep. I’m a former Intel employee :open_mouth: and other than a hiring freeze and a few redundancies, there hasn’t been too much to worry about.

I do get the feeling that the Fab24/2 extension will be the last of the significant investment in Ireland by Intel.

Thats a BIG could! DELL,one of Intels biggest customers has now switched its preference to using AMD chips.It is not so long ago that I stood in Fab 24…unfinished with only 3 of its main walls standing…pigeons flying around…builders etc demobilised…in 2001 when they had a little downturn/glitch in their fortunes!Staff had enforced unpaid holidays etc…do you remember that? And staff jumping to join trade Unions etc? I was also involved with Intel overseas…where they are seriously ramping up…Israel,Russia etc.

I understand all that, and I realise there may not be any investemnet or much of an exciteing future for the Irish plant and in many years to come they may pull out, but I’m saying it has a good bit of life in it yet.

Mistakes have been learnt from the past to tighten the belt early. And hopefully new stratagies will prevent issues like those.

Also most of the people made redunant at the time where hired back with bigger saleries, shows lack of forthought at the time.

Anyway my point is we could be hit very bad in the future if the economy turns on its heals and we loose low corperate tax. But for the moment the company is bing very sensible about its spending and I think your view is overly pesimistic.

Of these are all things that are know in the market, I’m not giving any new information.

So yes it is a big could with regards the big technoligy 3 generations from now. But I think there is at least 5-10years life left in general.

Anyway as with people who are in denial about the housing market because the just bought a house I quite like my job :wink: But the place is in no panic

Sorry about my terrible spelling by the way. I’m not very good at expressing myself.

I was just being careful that everything I said was something that could be obtained from outside sources. Paranoia and all that. Every thing else is just opinion.

Hey Shirley, don’t be sorry! I was just having fun, I’m a wee bit pedantic about spelling on the 'net…

Don’t take me seriously…

But “technoligy” twice? I was getting worried!!! :wink:

I’m unbelievable, I have no memory either. It’s a good thing I’m a half decent scientist or there would be no hope for me :wink:

An English-based has announced plans to lay off 61 workers in Co Galway.
Integrated Utility Services says the jobs will be shed at its plant in Tuam.

The company specialises in designing and installing electrical infrastructure and other utility networks.