US business wary of EU tax plan

The chief executive of the American Chamber of Commerce, Ms Joanne Richardson, has expressed concern about proposals to harmonise EU corporate tax rates.

The concerns were outlined to the President of the European Parliament, Mr Pat Cox, who was guest of honour at a dinner in Cork hosted by the chamber yesterday. Ms Richardson detailed some EU issues which were of concern to US multinationals.

Ms Richardson said "excessive EU legislation had the potential to add greatly to the burden of doing business throughout the EU as well as making Europe an expensive location for US multinationals. We do not want a situation developing where it is easier for companies to locate in developing countries."

She expressed concern about REACH - the Registration, Evaluation, Authorisation and Restriction of Chemicals Act - which she said pharmaceutical companies were concerned would result in a costly, burdensome and complex regulatory system.

Ms Richardson also expressed concern about the effect the EU Consultation Directive would have on Irish industrial relations law. The directive, due to be transposed into Irish law in March 2005, provides for the right of employees in medium and large-sized companies to information and consultation on a range of workplace issues.

A number of companies are concerned that it will lead to de facto negotiation with trade union representatives where such was not previously the case.

Mr Cox said the EU/US economic relationship was the only relationship in terms of trade and investment that was a "trillion dollar relationship" and both shared an interest in ensuring the relationship worked well.