Corporation tax rate 'is not up for negotiation' - Minister O’Keeffe

18 November 2010

The Minister for Enterprise, Trade and Innovation, Batt O’Keeffe TD, has reiterated the Government’s commitment to Ireland’s 12.5pc corporation tax rate, saying 'it is not up for negotiation'.

‘Our 12.5pc corporation tax rate is a vital draw for foreign direct investment (FDI) and it remains a key component of our industrial policy.

‘It is an aspect of taxation on which the Government is not for turning and it is vital that we keeping hammering that message home to the international investor community,’ said Minister O’Keeffe.

FDI generates more jobs per head of population in Ireland than in any other country and foreign firms support some 240,000 Irish jobs.

'They account for 50pc of corporation tax, 70pc of national exports and a €19 billion spend in the economy, including €7 billion in payroll.

‘Internationally, FDI was down 30pc last year but in Ireland it fell by just 4pc.

‘Our enterprise economy is growing.

‘Our economic recovery will be driven by sustainable economic export-led growth,’ said Minister O’Keeffe.

ENDS

Bernard Mallee, Press Adviser to Minister Batt O'Keeffe, Department of Enterprise, Trade and Innovation, on Tel: +353 1 631 3944, Mobile: +353 87 9173022, Email: bernard.mallee@deti.ie