Aontú Leader and Meath West TD Peadar Tóibín stated:
“Ireland is facing a significant economic storm. The threatened tariff war from the United States would do incredible damage to Ireland’s current economic model. Proposed changes in US Corporation Tax would be catastrophic for the Irish economy”.
“Ireland exports more relatively to the US than other EU countries. Last year Ireland exported €72.6 billion worth of goods to the US. €58 billion is composed of pharmaceuticals and chemicals. Under the threatened tariffs these products would become much more expensive, and demand would fall. Many of these businesses will not accept decreased demand. They would shift some production elsewhere. Jobs and GDP would fall. Ireland is incredibly exposed”.
“A large part of this exposures stems from the policy of successive Fianna Fáil and Fine Gael governments of putting so many of our economic eggs in the bargain basement corporation tax model. FDI is good. FDI needs to be nurtured and promoted. But Ireland needs to build a stronger indigenous enterprise sector. Indigenous enterprise is stickier. Its far less mobile. Its much more likely to remain in Ireland despite the prevailing economic head winds that are starting to blow against Ireland”.
“Also the singular dependence on Corporation Tax means we are particularly vulnerable to changes in the US rate of Corporation Tax. We need to build competitive advantages in transport infrastructure, ICT infrastructure, energy infrastructure and a better educated work force. We need to ensure that workers have a place to live that doesn’t cost the world. We ned to reduce input costs for businesses and create efficiencies”.
“Finally, on the issues of tariffs. Ireland has outsourced most of this work to the EU. Outside of today’s Oval Office press conference its hard to see much real work by the government in its engagement with senior levels of the US administration. Indeed, I asked the Minister for Minister for Finance if he are his department had engaged with the US administration seeking to mitigate against any possible damage to this country. The response that I got from Minister for Finance was shocking. The response stated he has no responsibility to the Dáil to answer such a question”.
