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Speech by Taoiseach Enda Kenny T.D. to the US Chamber of Commerce, Washington, Thursday 13 March 2014

Ireland’s Economic Recovery Opening

Thank you, Myron

Ladies and Gentlemen, I’m delighted to be back with you today. Thank you for your warm invitation.

When I bumped into Tom Donohue a few weeks ago at the World Economic Forum in Davos, there was the time and the temperature for just a few quick words.

But that was time enough for Tom. “We want you back, and we want to hear the news from Ireland!”

So here we are.

I’m sure many of you were here last year when I spoke of how we were addressing the economic crisis and the progress we were making.

This year I’m delighted to say that our national recovery is continuing apace.

Certainly we have a way to go but equally certainly we are moving in the right direction.

In fact we’re right on course in our ambitious plans to make Ireland the best small country in the world for business.

Ireland’s Economic Recovery

Today then I’m delighted to say our economy is growing.

61,000 new jobs in the last year alone the highest rate of jobs-growth in Europe.

In US terms, that would represent an increase of more than five million more people at work in the year.

Last week, we had a major breakthrough in our recovery when the unemployment rate fell below the Eurozone average.

At just under 12 per cent this rate is still too high.

Which is why we will be keeping our focus relentlessly on jobs and the best ways to create them.

Exiting the EU/IMF Programme

Because this is what our people deserve.

Because today I stand here and bring you the good news.

But it is the Irish people themselves who made it all happen.

In December after their three years of cruel sacrifice backbreaking work tedious rebuilding.

Ireland exited the EU/IMF bailout without supports.

Thanks to the guts the drive the stoicism of the Irish people, we were the first affected-country in Europe to do so.

In January we raised €3.75 billion on the financial markets at a competitive rate a further important sign of confidence in our recovery.

With Moody’s deciding to upgrading Ireland’s credit rating and change the outlook to positive the international markets are looking at Ireland and liking what they see.

For all the main credit-rating agencies Ireland’s debt is now seen as investment grade.

Irish banks, too, are active once more in the funding markets.

In 2013, they completed funding transactions amounting to €8.6bn

Further proof that Ireland is getting its economic house in order.

We are re-establishing our reputation as a stable location for investment and jobs.

Yes as in the best of news the best of stories we had a little help from our friends our partner both in Europe and in America.

And today, I want to thank America for its support.

I want you to know that for us this stage of our recovery though critical is just the start.

As a government we’re ambitious for our country our people so we will always have a long way to go.

Medium Term Economic Strategy

To make sure we increase those strides get further on the journey. We’re implementing a medium-term plan for jobs and growth.

This plan has two targets:

Number One: to reduce the Government deficit to under 3% of GDP by 2015 and to eliminate it altogether by 2018.

Number Two: is to replace all 330,000 jobs lost during the recession with new jobs by 2020

How will we reach them?

By being obsessive in our attention to the detail of the public finances, euro on euro, cent on cent

Right now we’re in the position where just three years into our tenure nine tenths of our budgetary correction has already been completed. Done.

And by 2018 we are confident that we will have eliminated the deficit.

As you know banking reform is critical to our economic recovery so naturally we will be completing our reforms of the banks.

But equally we will as I said be focussing relentlessly on creating jobs.

Including through our multi-annual Action Plan for Jobs framework.

TTIP

As a small, open economy, we never turn our attention from the matter of international trade.

As many of you will know this time last year Ireland held the Presidency of the EU Council.

I’m proud to say that as the gateway to Europe and to America we played a pivotal role in getting the Transatlantic Trade and Investment Partnership (TTIP) negotiations underway.

No-one said they were ever going to be easy.

But I believe that everyone here agrees that an ambitious TTIP deal has win-win potential on both sides of the Atlantic.

In particular it has the vital promise of jobs the dignity of work for our people and of course, the prospect of growth for Europe and America.

In Brussels this week the fourth round of negotiations on a trade agreement is under way.

Later today when I meet the US Trade Representative Mike Froman I’m looking forward to getting the US perspective on how these negotiations are going.

The talks might be long but I believe that on either side in terms of the opportunity they offer our countries our peoples we can never take our eyes off the prize.

US – Ireland Economic Relationship

Just as America matters to Ireland as a friend equally you matter to us economically.

In fact the benefits to Ireland of a healthy, vibrant and open US economy cannot be over-stated.

You are our single, largest, export-market for goods.

Last year America consumed over a fifth of our total goods exports.

Not alone are you a vital market you are a valued trading partner.

In fact you’re our largest trading partner in international traded-services. With total trade in services amounting to more than $40 billion (€30 billion) in 2012.

As Ireland exports four fifths of everything we produce, Irish companies have developed unique strengths and capabilities to compete globally and successfully across a range of sectors.

We’re serious about our exports because we’re serious about jobs.

And right now direct and indirectly exports from Irish companies sustain more than 300,000 jobs in the Irish economy.

That’s 16% of our total workforce.

Just as Ireland and America share a proud history I believe equally we can share a bright and better future on either side of the Atlantic.

Already today there are 220 Irish companies employing tens of thousands of people across all 50 US States.

But these Irish entrepreneurs are not just strong traders employers they are powerful innovators.

And we have given them a support structure which is right up there with the best available anywhere.

That is why we can say that today Ireland is the perfect location for overseas entrepreneurs to create innovative start-ups.

We give them wide-ranging supports and critically and crucially an eco-system that values and fosters innovation.

And because we do I’m delighted to be able to say that last year Forbes magazine named Ireland the best country in the world for business.

Inward Investment

It comes as no surprise then that Ireland is recognised as the premier European location for businesses wanting to internationalise their operations.

In fact I’m glad to be able to say that now Ireland is a world leader in attracting inward investment.

2013 was a record year for investment into Ireland by multinational companies with over 7,000 new jobs created in the sector.

We won 164 projects, 78 of them from companies investing in Ireland for the first time.

Among the companies placing their faith – and their investments - in Ireland in the last twelve months were Tyco, Amazon, HedgeServ, Deutsche Bank, Twitter, EMC, eBay, Salesforce, Novartis, Vistakon, Facebook, Zurich, Symantec, De Puy, Yahoo, Sanofi and Indeed.com.

You can see that US firms, in particular, are playing a major role in Ireland’s economic recovery and progress.

To the degree that US firms have invested more capital in Ireland since 1990 (some $189bn) than in the four BRIC nations combined.

It’s no great surprise then that we top the world for presence of US multinationals and US emerging companies.

To them it makes sense.

They know that Ireland has a competitive business offering that can deliver a real return on their investment.

Ireland’s Competitiveness

Of course our competitiveness is something we’ve been keeping a very close eye on.

I’m pleased to say it’s improved dramatically since 2008.

We believe that we have a unique value proposition.

A talented workforce, an excellent track record and a very attractive corporation tax rate of 12.5%.

Each and all of them so vitally important for US companies deciding to invest in Ireland.

Equally vital is our standing and reputation.

I’m proud to say that the recent IBM ‘Global Location Trends’ Report put Ireland first in the world for inward investment by quality and value.

The put us first in Europe and second in the world for the number of investment jobs per capita.

Testament to how strong, how vibrant, the Ireland offering is.

Corporation Tax

Our competitive rate of corporation tax is just part of the mix that makes us an attractive prospect for investment.

Ireland offers a transparent corporation tax regime together with a rapidly-growing network of international tax treaties with full exchange of tax information.

Right now we are actively engaged in the debates that are underway internationally, about corporation-tax practices, including in the EU and in the US Congress.

There is no doubt that these debates reflect real concern about the extent of the ability of some multinationals to lower their world-wide rate of tax using international structures, reflecting the global context in which we all now operate.

We are convinced that the best way to tackle this question effectively is for countries to work together at the international level.

Ireland is a strongly committed participant in processes such as the work underway at the OECD, with the support of the G20, on Base Erosion and Profit Shifting.

We are also committed to continuing to compete fairly to attract new foreign direct investment into Ireland and our tax rate, applied fairly, will remain a key part of our strategy.

Tourism

Tourism is central to our recovery strategy.

And last year with The Gathering we had a record year for visitors.

Over a million alone from North America that’s growth close to 14 per cent.

We’re looking forward to seeing all of you in Ireland and I can tell you that getting there has never been easier.

Direct air capacity is up. In fact, there are now ten gateways, including the launch of the new San Francisco – Dublin service at the beginning of April, operated by Aer Lingus.

When you do visit I would dare any of you here not to be blown away metaphorically by our Wild Atlantic Way.

Conclusions

To conclude then let me say thank you.

Thank you for your belief in Ireland.

For keeping and strengthening the economic ties that bind.

My message to you today is that if you want to do business in or with Ireland as Taoiseach my door is always open to you.

We have a world-class team ready to help you.

Thank you for your interest, and I look forward to some discussion during our Question and Answer session.

ENDS