PROPERTY INDUSTRY WELCOME GOVERNMENT CONFIRMATION ON CORPORATION TAX
CB Richard Ellis Reaction to 4 Year Strategy
Wednesday 24th November 2010 – Property consultants CB Richard Ellis this afternoon welcomed confirmation from Government in their 4 year financial plan that the 12.5% corporation tax rate is to be maintained.
They say that the measures announced in today’s plan will have severe consequences for all sectors of society over the next four years. They go on to say that many of the measures announced will have repercussions for the property market, particularly plans to shrink the public sector, plans to increase the rate of VAT, plans to cut capital spending and plans to introduce a site value tax. However, they acknowledge that without taking these difficult decisions, the Irish economy will be unable to move beyond this point.
The property consultants recently prepared a report comparing the office market in Dublin with a number of cities that the capital competes directly with for foreign direct investment and international office occupiers, namely Birmingham, Manchester, Edinburgh, Glasgow, Amsterdam and Belfast. This study found that Ireland attracted a greater proportion of overseas occupiers than other jurisdictions and that a large number of the multinationals that set up new operations in Ireland over the last decade did so because of this 12.5% corporation tax rate and assurances that the rate would not be changed.
Marie Hunt, Executive Director at CB Richard Ellis, Ireland, ”Ireland has attracted more than its fair share of corporate occupiers over the last ten years, which in turn has brought thousands of jobs to this country. Much of this investment has been attracted by the 12.5% corporation tax rate. Many or these large employers have been threatening to leave Ireland if this rate was increased as has been speculated on in recent weeks. While in many respects, the 4 year plan announced today is harsh and will reduce everyone’s standard of living over the next number of years, we welcome the fact that we now have conformation from Government that the corporate tax rate is to be maintained and that we have certainty on what cuts are coming down the line. The focus now is to ensure that we maximise our competitive advantage in an effort to stimulate job creation”.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2009 revenue). The Company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com
In Ireland, with offices in Dublin and Belfast, CB Richard Ellis is the country’s largest commercial real estate services company, now employing over 140 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, project management, consultancy, valuations and research. CB Richard Ellis Ireland has been listed among the top 50 Best Workplaces in Ireland, 2010, for the sixth year running. Please visit our website at www.cbre.ie or www.cbre.ie/ni
CONTACT: Marie Hunt, CB Richard Ellis