Ireland top spot for FDI Jobs



Cassandra Syndrome

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So this is what the resident FF spin machine has been downsized to. The words "scraping" and "barrel" spring to mind. How many do FDI's employ? 100,000? That is not even 5% of the workforce.

We have 750,000 people either unemployed or underemployed and only 20% of the economy is now in agriculture and industry from over 50%, 40 years ago. Progress for a large island rich in resources?

Its funny that Norway, Australia, Canada or Switzerland are not concerned about this thing called a "smart economy". Why is that? Oh yes they are rich in resources too, but they are independent countries, with independent currencies, have a very excellent social structure, full employment and above all democracy (in particular direct democracy in Switzerland). They don't need foreign direct investment. They work for themselves and don't live under a dictatorship like we do.
 

Cassandra Syndrome

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It's good that it's not bad news like everything else we are hearing.
There are genuine good news stories out there such as people getting back into agriculture and horticulture. Self employment will also increase as people wean themselves of Statism. Bit by bit we will get there.

Unfortunately we have lost a lot of the traditional manufacturing sector and the crafts people that went with that. We also lost a lot of people that emigrated.

We forget how low the density of population is in this country. We had 7 million or more before the famine. If we hadn't have suffered this holocaust and had the industrial revolutions like the other countries we would be up there with Switzerland and the US who never had a setback of being bombed during the two world wars.
 

kerdasi amaq

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The only industry that really matters, in this country, is securing employment for village idiots. The governments no. 1 employment priority.
 

TradCat

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Turnover is vanity, profit is sanity. Having the most companies is easy if you are operating as a tax-free banana republic and facilitating legal scams to help companies avoid tax elsewhere.

We recite the names of the companies here as if it proves we are high-tech. In fact we are just low-rent. Of course the jobs are great while they last but they reflect badly on us. They demonstrate our absence of self-respect as a state. Cute-hoordom at an international level.

Where's our fishing industry? Why have we let costs destroy Tourism? Why do we import carrots.

We need a re-think so that when the EU and the US pull the plug on our scheme it doesn't come as such a shock.
 

Ulster-Lad

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I would bet it is the number 1 destination. Nothing like some of that double Irish. :(
 

meriwether

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So this is what the resident FF spin machine has been downsized to. The words "scraping" and "barrel" spring to mind. How many do FDI's employ? 100,000? That is not even 5% of the workforce.

We have 750,000 people either unemployed or underemployed and only 20% of the economy is now in agriculture and industry from over 50%, 40 years ago. Progress for a large island rich in resources?

Its funny that Norway, Australia, Canada or Switzerland are not concerned about this thing called a "smart economy". Why is that? Oh yes they are rich in resources too, but they are independent countries, with independent currencies, have a very excellent social structure, full employment and above all democracy (in particular direct democracy in Switzerland). They don't need foreign direct investment. They work for themselves and don't live under a dictatorship like we do.

Thank you for most of that post. I'm hoping this waffle about the smart economy will soon be punctured.

In Ireland we have one abundant asset, our green and pleasant land.
We should exploit it to increase agriculture production and increase tourism.

Not everyone is going to be a computer programmer, contrary to what Batt O'Keefe and Mary Coughlan would have us believe.
 

Ulster-Lad

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"Double Irish"

For those that don't know what the Double Irish is.

In Bermuda there's no corporate income tax at all. Google's profits travel to the island's white sands via a convoluted route known to tax lawyers as the "Double Irish" and the "Dutch Sandwich." In Google's case, it generally works like this: When a company in Europe, the Middle East, or Africa purchases a search ad through Google, it sends the money to Google Ireland. The Irish government taxes corporate profits at 12.5 percent, but Google mostly escapes that tax because its earnings don't stay in the Dublin office, which reported a pretax profit of less than 1 percent of revenues in 2008.

Irish law makes it difficult for Google to send the money directly to Bermuda without incurring a large tax hit, so the payment makes a brief detour through the Netherlands, since Ireland doesn't tax certain payments to companies in other European Union states. Once the money is in the Netherlands, Google can take advantage of generous Dutch tax laws. Its subsidiary there, Google Netherlands Holdings, is just a shell (it has no employees) and passes on about 99.8 percent of what it collects to Bermuda. (The subsidiary managed in Bermuda is technically an Irish company, hence the "Double Irish" nickname.)
The Tax Haven That's Saving Google Billions - BusinessWeek

The article states that a convoluted route known to tax lawyers as the "Double Irish" and the "Dutch Sandwich is used. To me this implies that it is used by more then just Google and we are a laughing stock.

No wonder the FDI has increased.
 

Watcher2

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It's good that it's not bad news like everything else we are hearing.
I agree and I also want to clarify something that may or may not have been missed. This announcement does not mean we get the highest amount of FDI money, but rather we are more efficient in job creation through that investment. This must be good news.

I would also like to reference another poster and their point about the relative number of jobs from FDI being a small percentage of the overall work force. This is a very important point. The focus, which will surely intensify along the lines of "FDI to be the savious of the economy", should be on homegrown, indigenous businesses. The reason is 2 fold (and others I'm sure will speak of more, these just immediately come to mind):

Our open economy - this has been shown to be negative in these times because not only are we suseptible to domestic turmoil, we are also susceptible to foriegn turmoil too. A double edged sword, but we should at least blunt one side.
Numbers employed - clearly domestic business has a larger impact on employment AND all the profits stay in the country. On top of that, really successful domestic business that branches out into other markets actually bring back money from tjose foruiegn shores giving a double boost to the excheqer figures.

So, this report should not be used as an excuse for FF inaction on domestic business support or for diverting our ever dwindling resources on attracting FDI over supporting our own business leaders. The main focus should be on domestic supports. Surely they (IDA etc) have the process perfected in attracting FDI and now need to brush up on how to assist in the development of domestic businesses.
 

FlyOver

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As typical, RTE can't read statistics worth a Sh1Te!!! Here is the real news...
RTÉ misreads Irish Times report

The reality is that FDI EMPLOYMENT over the last 10-12 years has not grown...the money has rolled through the system but it has not equated to the formation of jobs!!!


State agency Forfás reported last March that total permanent full-time employment in the manufacturing and internationally traded services sectors amounted to 272,053 in 2009. It was 276,287 in 1998. Employment in foreign-owned firms was 132,596 in 2009 and 140,281 in 1998.
 

Watcher2

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For those that don't know what the Double Irish is.



The Tax Haven That's Saving Google Billions - BusinessWeek

The article states that a convoluted route known to tax lawyers as the "Double Irish" and the "Dutch Sandwich is used. To me this implies that it is used by more then just Google and we are a laughing stock.

No wonder the FDI has increased.
The vast, vast majority of MNC's use this type of structure, although they will all now likely be dismantled since Irish tax law on royalty withholding taxes have changed.
 

Bismarck

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Typical reaction around here to any good news - "it must be untrue. Probably drawn up by fianna fail spin doctors working in a scret bunker somewhere in Brian Linehan's house. The world is going to end and nothing will stop it."

Its nice to have some good news God knows most of you would be all over it if it was bad news!!!
 

iartaoiseach

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I don't see what's so good about us being more reliant than others on multinational 'investment'. it leaves us more at the mercy of these corporations than most and the evidence has been in the news this last two years. when their huge profits stabilized or reduced by a small amount they buggered off somewhere cheaper. these companies set up here, milk all they can in government(taxpayer) support (subsidized wages, free or grant aided land and buildings etc) going by recent reports they do their utmost to avoid paying tax(even here where it is relatively low) much of the workforce are trained in house so their training is not fully recognized when the inevitable happens and they are seeking new jobs. they repatriate their profits so the only contribution many make to this country is that their employees spend their wages here. I accept that there is a need for some FDI in a small country like Ireland but it would be far better if we could minimize our reliance on this type of investment imo. as others have said if our government gave the same assistance and reliefs to home grown business we'd be better off long term.
 


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