Fears Of US Firms’ Pullout Dismissed

Date Published: 02-Sep-2008

ECONOMISTS and the Industrial Development Authority (IDA) have moved to calm fears that the major American multinational companies operating in Galway may pull out of their bases here after the November presidential election in the United States.

Both Democratic candidate Barack Obama and the Republican candidate, John McCain have indicated they intend to introduce tax schemes which would encourage American companies to confine their business to the United States if they are elected to the most powerful seat in the world.

Obama has also stated on numerous occasions that he wishes to help boost the American economy by ending tax breaks for those US companies who have major centres of operation overseas.

Some commentators have expressed concern that this will deter any American companies from expanding their operations to Ireland in the future, and that it may lead other well-established US multinationals to pull out of their Irish bases.

More than 70% of multinational companies based in Ireland are American owned – a figure that is replicated in Galway where the major employers such as Boston Scientific, Medtronic…