Complacency is the biggest risk facing US foreign direct investment in Ireland, the new president of the American Chamber of Commerce Ireland said yesterday.

“Just because we had a good 2012 doesn’t mean we’ll have a good 2013,” Peter Keegan, country executive, Bank of America Merrill Lynch warned, adding: “Tax, talent and competitiveness are the three key factors in attracting investment to Ireland.”

While he expressed satisfaction with the Government’s approach to maintaining the 12.5 per cent corporation tax rate, because “certainty is almost as important as the headline rate”, he noted other areas of concern.

“It’s very important to look at all aspects of the tax regime,” he said, adding that there were only three countries within the EU with a VAT rate higher than Ireland’s 23 per cent.

And with the UK “rolling out the red carpet” for investors, competition to attract foreign investment was heightening.