there has been very little in terms of new capital projects or expansion in the past ten years
certainly in the pharma industry, we’ve seen nothing on a scale comparable to the 90s
Amgen sounded the death knell for new FDI, at least until the current deflationary cycle is over.
12.5 % wasn’t sufficient to attract any new recent investment, and hasn’t stopped the drip-feed of relocations / lost potential investment to Asia and Eastern Europe.
If energy, wages and land costs decline to attractive levels there may be some hope for an increase in FDI.
What I found interesting when I looked at the Belgian pharmas is that those with a physical presence, production plants (multi 1K employees making things etc) came to Ireland some time ago. Almost all the recent relocations were brass plate operations which funneled several billion per month revenue through their Irish offices. The change in trading patterns with Belgium over the last decade is truly startling when you realize how much of the trading volume is accounted for by companies with no more than a few dozen employees in Ireland.
Indeed - it’s only natural that brass plate operations make up the recent majority of additions, since it’s the only way that ireland has been competitive since the 90s.
Any real operation has expenses and salaries which make ireland uncompetitive vs most of europe, never mind low cost countries - who cares about corpo tax when you’re barely breaking even after paying irish running costs.
The FT is close to the European power structure and is favourable to the European Union. This is just part of the propaganda game. I agree with 2pack and Faugh’s take on it.
Though frankly I think we were always taking the piss with the 12.5% rate and are now suffering the blowback. Though it pains me to admit it, as a eurosceptic, there is legitimacy to the arguments from Berlin and Paris. A rate of around 20%, my guess is we could have held on to most of the US MNC’s and been able to say to the Europeans, no, it’s not predatory, it’s just business friendly.
Not sure on the term ‘unfair’ in general though - I don’t think anyone important objects to low corporation tax on real business in ireland - after all the shortfall in tax revenue means high taxes on something else, or crappy services, so it all balances at the end. It’s the predatory taxation policies that get people annoyed, designed to help evasion of tax elsewhere in return for a cut of the action.