Increasing corporate tax would result in job losses

Increasing corporate tax would result in job losses

16 February 2011 at 00:00
Any increase in our corporate tax rate would result in significant job losses in the engineering sector, according to John Power, Director General of Engineers Ireland.  He was speaking as new Ipsos MRBI data revealed that 59% of engineers did not agree that Ireland should move away from relying on foreign direct investment to fuel the Irish economy. 
 
Mr Power was speaking on Open Day, the third day of Engineers Week 2011 (www.engineersweek.ie) which runs until Sunday, February 20.  “Relying excessively on any one sector or single plank of activity to support an economy’s sustainable growth is clearly unwise for any country.  However, foreign direct investment still underpins a huge amount of the estimated €5.5 billion engineers directly contribute to the Irish economy annually.  With nearly two thirds of the engineers surveyed indicating that FDI should not be de-prioritised, it is clear that large amounts of engineers in Ireland, some of whom are employed by the many big multi-national firms still see our current corporate tax rate as a huge enticement for them to remain here.  Any change to this rate could have disastrous effects on the engineering sector in terms of job losses.”  
 
“Moreover, the recent World Bank Price Waterhouse Coopers report, indicated that the actual corporate rate paid by firms in many other EU countries is well below the official nominal rate, suggesting there is a significant degree of European political posturing here. There must be a robust defence of Ireland's corporate tax rate by the next Government,” Mr Power said. 
 
Engineers Week 2011’s Open Day saw organisations and third level institutions all over Ireland, such as Bord Gais, Medtronic, Covidien and Trinity College, open their doors to the public to showcase the importance of engineering to Ireland’s economy.
 
Engineers Week runs from February 14 to February 20 (see details below).  Nearly 150 events will take place nationwide over the course of the week.  To find out more information about events taking place near you or to register your attendance log onto www.engineersweek.ie.