Madam, – Chris Horn’s excellent article (Innovation Extra, April 13th) on the need to focus on keeping our export engine healthy moves the focus of what Ireland should be doing in the current crisis in the right direction.
The single most important goal we need to have is preservation of our 12.5 per cent corporation tax.
This is the main reason the US- based export manufacturing firms are here and their health and continued growth is the bedrock of our real economy.
If we do not bring our public finances into order, others, such as the IMF, will.
A lender such as the IMF would immediately make a 15 per cent to 20 per cent cut in the public expenditure, including the public sector wage bill. They would inevitably then start looking at our corporation tax rate, providing a short-term solution that would satisfy their needs but would ruin our future for the next generation.
We need to seriously address the huge gap in public finances now. We are like a seaworthy but overloaded boat, blown off course and heading for the rocks. We need to lighten the boat so be able to steer away – quickly.
For our future, our main focus should be to retain the one competitive advantage we have in the global economic race – the 12.5 per cent corporation tax rate.
We need to take the hard decisions now. We owe it to the next generation. – Yours, etc,