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Apple’s warnings and gripes are part and parcel of a multinational’s close contacts with Government

Ministerial lobbying by big corporations with large Irish operations are commonplace in a State that leans heavily on foreign direct investment

Cathy Kearney, Apple's vice-president of European Operations, with former taoiseach Leo Varadkar: There was a warning of 'aggressive competition from countries trying to secure large multinationals, such as Apple, to relocate from Ireland to their shores'. Photograph: Michael O'Sullivan/OSM PHOTO
Cathy Kearney, Apple's vice-president of European Operations, with former taoiseach Leo Varadkar: There was a warning of 'aggressive competition from countries trying to secure large multinationals, such as Apple, to relocate from Ireland to their shores'. Photograph: Michael O'Sullivan/OSM PHOTO
Cormac McQuinn's picture
Cormac McQuinn
Thu Sept 12 2024 - 06:00

There is nothing unusual about executives from multinational companies like Apple engaging with new Irish Government ministers.

Given the revenues that flow into the exchequer from tech and pharma giants – and the many thousands of jobs they provide in Ireland – it is no surprise there is fairly frequent correspondence and meetings with senior political figures.

While the relationship between the multinationals and the Government is often warm, with congratulations flying upon the election of new taoisigh or ministers, the contacts from the companies can also come with warnings and gripes.

These are certainly evident in the Government’s note of the discussions in June between Apple representatives, including vice-president of European operations Cathy Kearney, and the then recently appointed Minister for Enterprise Peter Burke.

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It was not all bad news for the Government at the meeting.

Ms Kearney is said to have spoken about Apple’s “growth plans both in Ireland and globally”.

However, the Department of Enterprise account of the meeting also details a warning from the Apple representative about “aggressive competition from countries trying to secure large multinationals, such as Apple, to relocate from Ireland to their shores”.

According to the note, the Apple representatives also suggested “slow progress” on infrastructure such as the roads network feeding its Irish base in Cork was “hindering Apple growth plans”.

It is not the first time Apple has raised infrastructure issues with the Government.

The Irish Times previously reported that at a meeting with then-taoiseach Leo Varadkar in 2017, Ms Kearney outlined challenges Apple was facing on the cost and availability of accommodation for its employees.

Apple is not alone among tech companies raising issues with the Government.

[ Apple runs out of road as European Court of Justice rules Ireland owed €13bn in back taxes ]

During a meeting with Mr Varadkar earlier this year, Amazon expressed doubts about its “capacity to expand” its cloud computing presence in Ireland because of difficulties connecting new data centres to the electricity grid.

Meta previously repeatedly lobbied the Government to ensure that Ireland’s new online services watchdog, Coimisiún na Meán, was fully staffed and resourced.

The Government has insisted this week that Ireland remains attractive for foreign direct investment (FDI), despite the Court of Justice of the European Union (CJEU) ruling on the Apple state aid case, which means the computing giant must now pay Ireland €13 billion in back taxes.

The Government said it would “respect” the court findings, while saying “the Irish position has always been that Ireland does not give preferential tax treatment to any companies”.

Apple said after the ruling, “We always pay all the taxes we owe wherever we operate and there has never been a special deal.”

[ Ireland Apple tax case Q&A: What happened in court, what does it mean and where does the €13bn go? ]

On Tuesday, Minister for Finance Jack Chambers pushed back against the idea that the outcome of the Apple tax case could make Ireland a less attractive place in which to invest.

He also said that a competitive tax rate was just one part in Ireland’s success in attracting FDI.

It is an argument the Government consistently made as it participated in global tax reforms that saw the end of Ireland’s 12.5 per cent corporate tax rate for the largest companies.

Mr Chambers this week highlighted a talented, well-educated workforce and Ireland’s place “in the heart of Europe” among other reasons for Ireland’s success in securing FDI.

That may all be true but there are some within Government who are concerned after the Apple ruling.

One source described it as a “blow to the FDI friendliness of Ireland” coming against a backdrop where the State was facing shortfalls in infrastructure.

Introductory meetings between multinational companies and new ministers, the kind that occurred between Apple and Mr Burke, may be routine.

But the details that have emerged from his discussion with Apple suggest that jitters about the future of multinational investment in Ireland are not without some foundation.