DEMANDS TO RETAIN LOW CORPORATION TAX IN FOUR YEAR PLAN - The healthier, wealth producing parts of the Irish economy want to hear commitments on the country's corporation tax in the soon to be published four year plan.
Lionel Alexander, President of the American Chamber of Commerce, says he and his association have made it very clear to the Government that the 12.5% corporation tax is critical because of the €165 billion worth of investment and the 100,000 workers associated with the multi-national sector here. He says he has received assurances from the Government on the tax rate. He also says the tax breaks on research and development should be retained as they are vital in order to attract higher value jobs to Ireland. Mr Alexander says that the multi-nationals have managed to create 3,500 new jobs this year and have contributed €3 billion to the Exchequer in taxes.
The chief executive of the Irish Association of Investment Managers, Frank O'Dwyer, says the four-year plan should have some degree of solidity in it and he says it should be clear and not fuzzy. While acknowledging that any plan which runs for four years may have a level of uncertainty towards the end of it, he says that Mr Lenihan will have to tweak it as it goes on. On the corporation tax rate, Mr O'Dwyer says that it is the central plank of industrial policy in Ireland and must be maintained in order to continue to attract foreign direct investment. He says any move to increase the tax will only undermine the country's growth potential and will also underline our ability to repay out debts.
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MORNING BRIEFS - Oil and gas exploration company Providence Resources has released the results of two years worth of 3D seismic studies at their Spanish Point discovery off the west coast. It suggests that after lots of drilling for oil, there is enough good news to advance towards commerciality in 2012.
*** On the currency markets, the euro is worth $1.3581 US cents and 84.69 pence sterling.
