IDA: Housing crisis and Trump move on US corporation tax having no impact on FDI

The chief executive of the IDA has said that the high cost of housing in the capital is not impacting on the flow of overseas investment into Dublin.

IDA: Housing crisis and Trump move on US corporation tax having no impact on FDI

By Gordon Deegan

The chief executive of the IDA has said that the high cost of housing in the capital is not impacting on the flow of overseas investment into Dublin.

In an interview at a Shannon Chamber of Commerce event in Dromoland, in Co Clare, at the weekend, Martin Shanahan also said that US president Donald Trump’s corporate tax cut in the US is having no impact on the pipeline of investments by US firms into Ireland.

Mr Shanahan also said that the higher marginal rate of income tax for top earners “is not as significant a barrier” to foreign direct investment (FDI) here, when everything is taken into account, and “is not an issue that comes up significantly” with foreign investors.

“Albeit, I think foreign investors would look at the higher marginal rate and compare it to other jurisdictions and note that it is higher in some other jurisdictions we are competing with,” Mr Shanahan said.

The IDA is on course for a very strong year, in terms of jobs growth, and Mr Shanahan said that the high cost and/or shortage of housing is not having an impact on overseas firms investing in Dublin.

“The evidence would suggest that ‘no’ — investment has increased and remains strong. The most recent figures for the first half of this year show that investments grew and grew in Dublin.”

On the high costs of residential property in Dublin, as it affects workers, Mr Shanahan said: “I consider everything in an international context and if you consider other jurisdictions, many of them are facing exactly the same type of issues that we are facing here”.

He said overseas investors view the housing shortage here “as a short-term issue, where they are planning for the long term.”

Martin Shanahan
Martin Shanahan

On US tax changes, Mr Shanahan said: “I don’t believe we will lose any existing investment because of the alterations to the US tax regime...but I am not ruling out the fact that there could be investment that has stayed in the US rather than internationalised.”

He said Apple’s plans to scrap its €850m data centre in Athenry, due to planning and legal delays, was “immensely regretful”, but that steps have been taken to try to streamline the planning process.

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited