The Celtic Tiger is looking decidedly peaky, but its fortunes had turned long before the current credit crunch. As a nearshore location, it was always a stepping stone for offshoring investment so much of the money has moved on. After the initial investment in construction and basic infrastructure, there has been little net product or value added to the economy from back office operations. Although the nominal tax regime is favourable, net revenue from multinational firms is constrained by transfer costs - money coming in goes straight out again to the benefit of corporate HQs in the UK and mainland Europe. To add insult to injury, the EU social investment funds that paid for Irelands growth and subsidised its tax regime has come to an end.More's the pity our government spends more energy on nepotism and lining their own pockets than finding a new direction for the country or nurturing local business.
