BUSINESS REACTION:BUSINESS ORGANISATIONS have said the Lisbon Treaty referendum result will strengthen Ireland's potential for foreign direct investment and help restore its international reputation.
It was also claimed that the result would cut interest payments on future State borrowings, thereby easing the burden on the taxpayer.
Brendan Butler, director of EU and international affairs with the Irish Business and Employers’ Confederation (Ibec), yesterday predicted the Yes vote could reduce interest rates on future State borrowing by about 0.5 per cent.
Estimates of the reduction in annual borrowing costs come to €200 million a year. However, the actual saving would depend on the amounts borrowed.
American Chamber of Commerce in Ireland president Dr Paul Duffy said voting Yes to Lisbon “removes a shadow which has been hanging over our international reputation and will strengthen Ireland’s potential for future foreign direct investment”, at a time when competition for such investment is very intense.
The chamber represents the interests of American companies in Ireland and Dr Duffy said the result removed any doubt about Ireland’s commitment to Europe. “From a US multinational perspective this is very important”.
Some 98 per cent of multinational chief executives in Ireland believe Ireland’s ability to influence decision making at an EU level is extremely important and believe a Yes result will have a positive impact on their business, Dr Duffy said.
According to the chamber’s figures, almost 100,000 people in Ireland are directly employed by more than 600 US firms. Last year US firms in Ireland paid €2.5 billion in corporate tax, about 40 per cent of the State’s total corporate tax take, he said.
Ibec director Danny McCoy said the vote “is an important step on the road to economic recovery and the restoration of Ireland’s international reputation. Work must now continue on repairing the Irish banking system and bringing order to the public finances.”