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UNCLAS SECTION 01 OF 14 DUBLIN 000060 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB/IFD/OIA 
 
E.O. 12958: N/A 
TAGS: EINV EFIN USTR ECON KTDB OPIC EI
SUBJECT: INVESTMENT CLIMATE STATEMENT 2006 - IRELAND 
 
REF: 05 STATE 202943 
 
DUBLIN 00000060  001.2 OF 014 
 
 
The following is keyed to reftel. 
 
A1. OPENNESS TO FOREIGN INVESTMENT 
---------------------------------- 
 
IRISH GOVERNMENT'S ATTITUDE TOWARDS FOREIGN INVESTMENT 
 
¶1.   Over the past twenty years, the Irish Government has 
actively promoted foreign direct investment (FDI), a strategy 
that has underpinned unprecedented economic growth during 
this "Celtic Tiger" period.  FDI flows into Ireland increased 
from an annual average of USD 140 million in the mid-1980s to 
USD 2.7 billion per year in the second half of the 1990s, 
yielding a total FDI stock of USD 213 billion by 2004. 
Traditionally, the principal goal of investment promotion has 
been employment creation, especially in technology-intensive 
and high-skill industries.  In recent years, the Irish 
Government has also supported efforts by foreign-invested 
companies to sustain their international competitiveness 
through R&D enhancements and the marketing/sales of 
higher-value goods and services. 
 
¶2.  The Irish Government's actions have had considerable 
success in attracting U.S. foreign investment.  According to 
the U.S. Department of Commerce, U.S. investment flow into 
Ireland in 2004 was USD 10.4 billion, roughly one-tenth the 
U.S. total for the EU.  Ireland received USD 3.4 billion in 
U.S. manufacturing investment flow in 2004 and was the third 
most attractive market in the world for this category of U.S. 
investment behind the United Kingdom (USD 13.2 billion) and 
Canada (USD 5.5 billion).  The stock of U.S. investment in 
Ireland in 2004 was valued at USD 73 billion, roughly five 
times the amount of U.S. investment stock in China (USD 15.4 
billion).  There are roughly 620 U.S. firms in Ireland, 
directly employing over 90,000 workers and supporting work 
for approximately 250,000, an eighth of the total labor 
force.  U.S. firms operate primarily in the following 
sectors: chemicals; bio-pharmaceuticals and healthcare; 
computer hardware and software; electronics; and, financial 
services.  In 2005, Ireland also emerged as a magnet for U.S. 
internet/digital media investment, with industry leaders 
Yahoo, Google, and Amazon making Dublin the hub of their 
respective European operations. 
 
¶3.  The American Chamber of Commerce reports that U.S. 
companies are attracted to Ireland as an export platform to 
the EU.  In 2004, Irish-based U.S. firms exported roughly USD 
55 billion worth of goods and services, mostly destined for 
the EU market.  Other reasons for Ireland's attractiveness as 
an FDI destination include: a 12.5 percent rate of corporate 
tax; the quality and flexibility of the English-speaking work 
force; cooperative labor relations; political stability; 
pro-business government policies; a transparent judicial 
system; and, the pulling power of existing companies 
operating successfully in Ireland (a "bandwagon" effect). 
Factors that negatively affect Ireland's ability to attract 
investment include: increasing costs of skilled and unskilled 
labor (especially when compared to low-cost countries such as 
China and India), inadequate infrastructure (particularly in 
the transportation, internet/broadband, and energy sectors), 
and absolute price levels that are ranked the highest in 
Europe. 
 
¶4.  Four state organizations promote inward investment into 
Ireland by foreign companies: 
 
-   The Industrial Development Authority of Ireland (IDA 
Ireland) has overall responsibility for promoting and 
facilitating foreign direct investment in all areas of the 
country, except the Shannon Free Zone.  IDA Ireland is also 
responsible for attracting foreign companies to   Dublin's 
International Financial Services Center (IFSC).  IDA Ireland 
maintains offices in New York, Boston, Chicago, San Jose, and 
Atlanta, as well as in Europe and Asia; 
 
-   Enterprise Ireland promotes joint ventures and strategic 
alliances between indigenous and foreign companies; 
 
-   Shannon Free Airport Development Co. (SFADCO) handles 
investment in the Shannon Free Zone and is generally 
responsible for economic development in the Shannon region. 
The Irish Government is in the process of folding SFADCO's 
functions into IDA Ireland, which will require legislative 
action; 
 
-   Udaras na Gaeltachta has responsibility for economic 
 
DUBLIN 00000060  002.2 OF 014 
 
 
development in those areas of Ireland where Irish (Gaelic) is 
the predominant language, and works with IDA Ireland to 
promote overseas investment in these regions. 
 
¶5.  Major Laws/Rules/Taxation Policy 
 
Ireland's judicial system is transparent and upholds the 
sanctity of contracts as well as laws affecting foreign 
investment.  These laws include: 
 
-  The Industrial Development Act of 1993, which outlines the 
functions of IDA Ireland; 
 
-  The Mergers, Takeovers and Monopolies Control Act of 1978, 
which sets out rules governing mergers and takeovers by 
foreign and domestic companies; 
 
- The Competition (Amendment) Act of 1996, which amends and 
extends the Competition Act of 1991 and the Mergers and 
Takeovers (Control) Acts of 1978 and 1987, and sets out the 
rules governing competitive behavior; 
 
-  The Companies Act of 1963, which contains the basic 
requirements for incorporation in Ireland (amended in 1990); 
and, 
 
-  The 2004 Finance Act, which introduced tax incentives to 
encourage firms to set up headquarters in Ireland and to 
conduct R&D. 
 
In addition, there are numerous laws and regulations 
pertaining to employment, social security, environmental 
protection and taxation, with many of these determined at the 
EU level. 
 
¶6.  One of Ireland's most attractive features as an FDI 
destination is the low corporate tax rate.  Since January 1, 
2003, the corporate tax rate for both foreign and domestic 
firms has been 12.5 percent.  Existing foreign firms will 
retain their entitlement to the "old" 10 percent rate until 
2010 in the case of manufacturing and certain internationally 
traded services.  Ireland's corporate tax rate is among the 
lowest in the EU, and the Irish Government continues to 
oppose proposals to harmonize taxes at a single EU rate.  In 
2004, U.S. firms in Ireland paid euro 2.7 billion in tax to 
the Irish Government. 
 
¶7.  All firms incorporated in Ireland are treated on an equal 
basis.  With only a few exceptions, there are no constraints 
preventing foreign individuals or entities from ownership or 
participation in private firms/corporations.  The most 
significant of these exceptions is that, as with other EU 
countries, Irish airlines must be at least 50 percent-owned 
by EU residents in order to have full access to the single 
European aviation market.  There are also requirements 
related to the purchase of agricultural lands (see below). 
 
¶8.  While Ireland does not have a formal privatization 
program, there is likely to be at least partial privatization 
of some state-owned companies over the coming years.  In 
2005, for example, the Government announced its intention to 
privatize Aer Lingus, the state-owned national airline. 
There are no barriers to participation by foreign 
institutions in the sale of Irish state-owned companies. 
Residents of Ireland, however, may be given priority in share 
allocations to retail investors, as was the case with the 
state-owned telecommunications company, Eircom, privatized in 
¶1998. 
 
¶9.  Citizens of countries other than Ireland and other EU 
member states can acquire land for private residential 
purposes and for industrial purposes.  Under Section 45 of 
the Land Act, 1965, all non-EU nationals must obtain the 
written consent of the Land Commission before acquiring an 
interest in agricultural land, though there are many stud 
farms and racing facilities in Ireland that are owned by 
foreign nationals.  There are no restrictions on the 
acquisition of urban land. 
 
¶10.  There is no formal screening process for foreign 
investment in Ireland, though investors looking to receive 
Government grants or assistance through one of the four state 
agencies responsible for promoting foreign investment in 
Ireland are often required to meet certain employment and 
investment criteria (see section "D" below).  These screening 
mechanisms are transparent and do not impede investment, 
limit competition, or protect domestic interests.  Potential 
investors are also required to examine the environmental 
 
DUBLIN 00000060  003.2 OF 014 
 
 
impact of the proposed project and to meet with Irish 
Environmental Protection Agency (EPA) officials. 
 
 
A.2. Conversion and Transfer Policies 
------------------------------------- 
 
¶11.  Ireland enjoys full current and capital account 
liberalization.   There are no restrictions or reported 
significant delays in the conversion or repatriation of 
investment capital, earnings, interest, or royalties, nor are 
there any plans to change remittance policies.  Likewise, 
there are no limitations on the import of capital into 
Ireland.  Foreign exchange is easily obtainable at market 
rates.  In 2004, the Irish Financial Services Regulatory 
Authority (IFSRA) reported that the Allied Irish Bank (AIB) 
had knowingly overcharged on foreign exchange transactions 
for several years.  AIB repaid the overcharged amount and 
conducted an internal disciplinary process.  The euro is 
Ireland's national currency. 
 
 
A.3. Expropriation and Compensation 
----------------------------------- 
 
¶12.  Private property is normally expropriated only for 
public purposes in a non-discriminatory manner and in 
accordance with established principles of international law. 
State condemnations of private property are carried out in 
accordance with recognized principles of due process.  Where 
there are disputes between owners of private property subject 
to a government taking, the Irish courts provide a system of 
judicial review and appeal. 
 
¶13.  In 2005, the only reported case of expropriatory action 
involving the property/facilities of U.S. investors was that 
of the Lusitania, the ship that was sunk off Ireland's 
southern coast in 1915 by a German submarine and which is 
owned by a U.S. citizen.  The U.S. owner has attempted for 
ten years to secure his right of access to the vessel and in 
2001 brought action against the Government in the Irish 
courts after his applications for a license to dive to the 
vessel were denied.  In 2005, a High Court ruling in the case 
noted that "the State simply cannot directly or indirectly 
expropriate this property from (the owner), or totally, or 
even substantially deny him access to or the use of his 
property or any part or parts of his property, even under 
color of merely regulating that access or use for the purpose 
of safeguarding a national asset, without paying appropriate 
compensation."  The Irish Government has appealed the ruling, 
as the two sides continue to discuss a possible license for 
an exploratory dive. 
 
A.4. Dispute Settlement 
----------------------- 
 
¶14.  Ireland has no specific domestic laws governing 
investment disputes with foreign firms.  There is, however, a 
legal arbitration framework available to parties that opt to 
arbitrate a dispute, including investment disputes, rather 
than litigate the case.  Currently, there are no disputes 
involving investments by U.S. firms either in arbitration or 
litigation.  In recent years, however, U.S. business 
representatives have occasionally called into question the 
transparency of government tenders, some of which have been 
won by U.S. companies.  Some U.S. firms claim that lengthy 
budgetary decisions delay procurements and that unsuccessful 
bidders often have difficulty receiving information on the 
rationale behind the tender outcome.   Successful bidders 
have experienced delays in finalizing contracts, commencing 
work on major projects, obtaining accurate project data, and 
receiving compensation for work completed, including through 
conciliation and arbitration processes.  Successful bidders 
have also subsequently found that the original tenders do not 
accurately describe conditions on the ground. 
 
¶15.  The Irish legal system is based on common law, 
legislation and the constitution.  The Companies Act 1963 
(amended 1990) is the most important body of law dealing with 
commercial and bankruptcy law and is applied consistently by 
the courts.  Irish bankruptcy laws give creditors a strong 
degree of protection.  The Department of Enterprise, Trade 
and Employment is the state agency with primary 
responsibility for drafting and enforcing company law.  The 
judiciary is independent, and litigants are entitled to trial 
by jury in commercial disputes.  Ireland is a member of the 
International Center for the Settlement of Investment 
Disputes, and the Irish Government has been willing to agree 
 
DUBLIN 00000060  004.2 OF 014 
 
 
to binding international arbitration of investment disputes 
between foreign investors and the state.  Ireland is also a 
party to the New York Convention of 1958 on the Recognition 
and Enforcement of Foreign Arbitral Awards.  There is no 
specific domestic body for handling investment disputes. 
 
 
A.5. Performance Requirements/Incentives 
---------------------------------------- 
 
¶16.  The Irish Government does not maintain any measures that 
it has notified the WTO to be inconsistent with Trade-Related 
Investment Measures (TRIMs) requirements.  Moreover, there 
have been no allegations that the Government maintains 
measures that violate the WTO's TRIMs text. 
 
¶17.  Three Irish organizations, SFADCO, IDA Ireland, and 
Udaras, have regulatory authority for administering grant aid 
to investors for capital equipment, land, buildings, 
training, R&D, etc.  Business enterprises in Ireland, 
including overseas companies, which seek grant aid from these 
organizations must submit investment proposals.  Typically, 
these proposals include information on fixed assets 
(capital), labor, and technology/R&D components and establish 
targets using criteria such as sales, profitability, exports, 
and employment.  This information is treated in confidence by 
the organizations, and each investment proposal is subject to 
an economic appraisal prior to approval for support.  In 
2004, IDA Ireland paid out euro 66 million in grants to 
foreign firms. 
 
¶18.  Performance requirements are generally based on 
employment creation targets established between the state 
investment agencies and foreign investors.  Grant aid is paid 
out only after externally audited performance targets have 
been attained.  Generally, parent companies must guarantee 
repayment of the government grant if the company closes 
before an agreed period of time elapses, normally ten years 
after the grant has been paid.  Grant agreements generally 
have a term of five years after the date on which the last 
grant is paid.  There are no requirements that foreign 
investors purchase from local sources or allow nationals to 
own shares. 
 
¶19.   As a result of "Agenda 2000" EU budgetary reforms, 
since 2000 Ireland has been treated as two regions for the 
purpose of EU structural funding and maximum "regional aid." 
Under the new rules, maximum grant aid assistance (40 percent 
of capital investment) is only available to companies 
locating in the 13 "Objective 1" border, midland and western 
(BMW) counties of Ireland, where infrastructure is less 
developed.  Companies locating in the remaining 15 counties 
in the more prosperous south and east are entitled to 
restricted grant aid up to a maximum of 17.5 percent to 20 
percent of their capital investment, depending on location. 
For the period 2004-2006, the following ceilings apply: 
 
Transition Regions            Percent of Capital Investment 
 
-- Southeast                             20 
 
-- Mid-West                              20 
 
-- Southwest                             20 
 
-- Mid-East                              18 
 
-- Dublin                                17.5 
 
Objective 1 Region 
 
-- Border, Midlands, West                40 
 
The current Regional Aid Guidelines (RAGs) will cease to 
operate at the end of 2006, and the EU Commission is now 
developing new RAGs for the period 2007-2013.  It is expected 
that these new rates will be lower than the current rates. 
 
¶20.  While investors are free, subject to planning 
considerations, to choose the location of their investment, 
IDA Ireland has since the late 1990s differentiated grant aid 
levels in favor of regions outside Dublin.  This linkage is 
consistent with the National Spatial Strategy, which was 
adopted in 2001 with the aim of spreading investment more 
evenly around the country.  One of the strategy's stated 
goals was to direct 50 percent of all new jobs related to 
greenfield investment to the border, midlands, and western 
(BMW) counties of Ireland, where the economy is less 
 
DUBLIN 00000060  005.2 OF 014 
 
 
developed.  In 1999, roughly 25 percent of jobs related to 
greenfield investment were located in the BMW region; by 
2004, this figure had grown to 41 percent.  In 2005, 46 of 71 
new investment projects negotiated by the IDA were slated for 
areas outside Dublin.  To encourage client firms to locate 
outside Dublin, IDA Ireland has developed "magnets of 
attraction," including: a Cross Border Business Park linking 
Letterkenny and Derry, a regional Data Center in Limerick, 
and the National Microelectronics Research Center in Cork. 
 
 
¶21.   There are no restrictions, de jure or de facto, on 
participation by foreign firms in government-financed and/or 
subsidized R&D programs on a national basis.  In fact, the 
government encourages multinational companies to undertake 
more R&D in Ireland.  Science Foundation Ireland (SFI), the 
state science agency, is responsible for administering a euro 
365 million R&D fund under the 2000-2006 National Development 
Plan.  The fund targets leading researchers in Ireland and 
overseas to promote within Ireland the development of 
biotechnology and information/communications technology, as 
well as complementary worker skills.  Under the 2004 Finance 
Act, moreover, a credit of 20 percent of the incremental 
expenditure on revenue items, royalties, plant, and machinery 
related to R&D can be offset against a company's corporation 
tax liability in the year in which it is incurred.  The 2006 
Irish Government budget also allocates euro 300 million to a 
new Strategic Innovation Fund, that will encompass R&D links 
between industry and academia.  In 2005, Microsoft, Lucent, 
Xilinx, Bristol-Meyers Squibb, Pfizer, and Genzyme, among 
other firms, launched investments in R&D projects and 
facilities. 
 
¶22.   Visa, residence, and work permit procedures for foreign 
investors are non-discriminatory and, for U.S. investors, 
generally liberal.  There are no restrictions on the numbers 
and duration of employment of foreign managers brought in to 
supervise foreign investment projects, though their work 
permits must be renewed yearly.  There are no discriminatory 
export policies or import policies affecting foreign 
investors. 
 
A.6. Right to Private Ownership and Establishment 
--------------------------------------------- ---- 
 
¶23.  The most common form of business organization in Ireland 
is the incorporated company, limited by shares, registered 
under the Companies Act, 1963, or previous legislation. 
Irish law does not prevent foreign corporations from carrying 
on business in Ireland.  Any company incorporated abroad that 
establishes a branch must, however, file certain papers with 
the Registrar of Companies.  A foreign corporation with a 
branch in Ireland will have the same standing in Irish law 
for purposes of contracts, etc., as a company incorporated in 
Ireland.  Private businesses are not at a competitive 
disadvantage to public enterprises with respect to access to 
markets, credit, and other business operations. 
 
¶24.  Before 1999, Irish company law differed from 
international norms by allowing, for tax purposes, the 
registration of companies in Ireland that were not actually 
resident in Ireland (so-called Irish Registered Non-Resident 
companies (IRNRs)).  In response to concern that a large 
number of the estimated 40,000 IRNRs were engaged in fraud, 
tax evasion, money laundering, and other illegal activities, 
the 1999 Finance Act equated registration in Ireland with tax 
residence and liability for all companies except in limited 
circumstances.  Exceptions include cases where the Irish 
company, or a related parent company, is carrying on trade in 
Ireland, and the company is ultimately controlled either by 
residents of an EU member state or by residents of a country 
with which Ireland has a tax treaty (including the United 
States).  Nonetheless, all Irish-based companies, including 
U.S. firms, claiming non-residence in Ireland because of tax 
treaty provisions must identify the beneficial owners of the 
company. 
 
¶25.   Similarly, the "Companies (Amendment) (No. 2) Act 1999" 
requires that every application for company registration in 
Ireland show the manner in which the proposed company will 
carry out activities in Ireland.  Section 43 of the 
legislation stipulates that a company must either have a 
director resident in the State or provide a bond of euro 
25,400 in the event that the company commits an offense under 
the Companies Act or tax legislation.  Section 44 states that 
these requirements may be waived when the Company obtains a 
certificate from the Companies Office stating that the 
company has a real and continuous link with one or more 
 
DUBLIN 00000060  006.2 OF 014 
 
 
economic activities in Ireland.  Like the 1999 Finance Act, 
the Companies Act is designed to prevent the use of IRNRs for 
exclusively foreign activities without any connection to 
Ireland. 
 
 
A.7. Protection of Property Rights 
---------------------------------- 
 
(I) Real Property 
 
¶26.   Secured interests in property, both chattel and real 
estate, are recognized and enforced.  The Department of 
Justice administers a reliable system of recording such 
security interests through the Land Registry and Registry of 
Deeds.  An efficient, non-discriminatory legal system is 
accessible to foreign investors to protect and facilitate 
acquisition and disposition of all property rights. 
 
(II) Intellectual Property Rights 
 
¶27.   Ireland is a member of the World Intellectual Property 
Organization and a party to the International Convention for 
the Protection of Intellectual Property.  In July 2000, Irish 
President McAleese signed legislation bringing Irish 
intellectual property rights (IPR) law into compliance with 
Ireland's obligations under the WTO Trade-Related 
Intellectual Property Treaty (TRIPs).  The legislation came 
into force on January 1, 2001, and gives Ireland one of the 
most comprehensive legal frameworks for IPR protection in 
Europe. 
 
¶28.  This legislation addressed several TRIPs inconsistencies 
in previous Irish IPR law that had concerned foreign 
investors, including the absence of a rental right for sound 
recordings, the lack of an "anti-bootlegging" provision, and 
low criminal penalties that failed to deter piracy.  The new 
legislation includes provisions for stronger penalties on 
both the civil and criminal sides. 
 
¶29.  As part of this comprehensive copyright legislation, 
changes were also made to revise the non-TRIPs conforming 
sections of Irish patent law.  Specifically, the new IPR 
legislation addresses two concerns of many foreign investors 
in the previous legislation: 
 
- the compulsory licensing provisions of the previous 1992 
Patent Law were inconsistent with the "working" requirement 
prohibition of TRIPs Articles 27.1 and the general compulsory 
licensing provisions of Article 31; and, 
 
- applications processed after December 20, 1991, did not 
conform to the non-discrimination requirement of TRIPs 
Article 27.1. 
 
¶30.  DVD and CD piracy, however, continues to be a problem. 
In 2004, the Irish police seized 130,000 pirated DVDs, valued 
at approximately euro 3 million, and 42,150 pirated CDs, 
valued at roughly euro 756,000.  In a June 2005 raid, police 
in County Meath confiscated 8,000 pirated DVDs and machinery 
that could produce 600 DVDs an hour.  Industry 
representatives note that pirated DVDs make up at least 60 
percent of the DVD rental market and that light penalties 
given to counterfeiters in DVD piracy court cases hamper 
police enforcement efforts.  Moreover, industry sources 
estimate that up to 38 percent of PC software used in Ireland 
is pirated.  The Business Software Alliance in Ireland 
estimates that reducing this rate by ten percentage points 
would help the USD 2.6 billion domestic IT industry to grow 
to USD 4 billion by 2009. 
 
 
A.8. Transparency of the Regulatory System 
------------------------------------------ 
 
¶31.  The Irish Government generally employs a transparent and 
effective policy framework that fosters competition between 
private businesses in a non-discriminatory fashion.  While 
ongoing Irish judicial "Tribunals" are investigating possible 
links between indigenous Irish companies' political donations 
in the late 1980s and favorable government decisions, U.S. 
businesses can, in general, expect to receive national 
treatment in their dealings with the Government.  There is no 
report of any U.S. firm or investor having being required or 
forced to make payments during that period. 
 
¶32.  In recent years, independent bodies have taken over 
regulatory powers from Cabinet Departments in key economic 
 
DUBLIN 00000060  007.2 OF 014 
 
 
sectors.  The Commission for Communications Regulation and 
the Commission for Energy Regulation are responsible for 
regulating the communications and energy sectors, 
respectively.  Both are independent bodies with institutional 
links to the Department of Communications, the Marine and 
Natural Resources.  The Commission for Aviation Regulation is 
an independent body that regulates the aviation sector.  It 
is institutionally linked to the Department of Transport, 
which has direct regulatory powers over other segments of the 
transportation sector. 
 
¶33.  The Competition (Amendment) Act 1996 amends and extends 
the Competition Act 1991, strengthens the enforcement power 
of the Competition Authority, introduces criminal liability, 
increases corporate liability, and outlines available 
defenses.  Most tax, labor, environment, health and safety, 
and other laws are compatible with European Union 
regulations, and they do not adversely affect investment. 
Proposed laws and regulations are published in draft form for 
public comment, including by foreign firms and their 
representative associations.  Bureaucratic procedures are 
transparent and reasonably efficient, in line with a general 
pro-business climate espoused by the Government. 
 
A.9. Efficient Capital Markets and Portfolio Investment 
--------------------------------------------- ---------- 
 
¶34.  Capital markets and portfolio investments operate 
freely, and there is no discrimination between Irish and 
foreign firms.  In some instances, development authorities 
and banks are able to facilitate loan packages to foreign 
firms with favorable credit terms.  Credit is allocated on 
market terms, although the Irish Competition Authority found 
in 2004 that the banking sector's lack of competition limited 
the amount of credit available to small and medium-sized 
firms.  Irish legal, regulatory, and accounting systems are 
transparent and consistent with international norms and 
provide a secure environment for portfolio investment.  The 
Capital Gains Tax rate is 20 percent.  The Irish banking 
system is sound.  The estimated total assets of all licensed 
credit institutions as of December 2005 stood at euro 911.4 
billion, with the Bank of Ireland and Allied Irish Banks 
holding a combined 25 percent of total assets.  According to 
the Central Bank, non-performing loans comprised 0.76 percent 
of total assets.  U.S. banks operating in Ireland include 
Citibank and Chase Manhattan. 
 
¶35.  As of January 2006, total market capitalization in the 
Irish Stock Exchange (ISEQ) was euro 95.1 billion, roughly 59 
percent of projected 2005 nominal GDP (euro 159.9 billion). 
In terms of market weight, the stocks of four companies are 
predominant: Allied Irish Bank, Bank of Ireland, CRH (a 
construction industry supplier), and Elan (a pharmaceuticals 
firm).  The Irish stock market has recovered steadily since 
plummeting in 2002 following the global economic slowdown and 
well-publicized management problems at several major Irish 
companies.  In 2005, the ISEQ Overall Index saw 20 percent 
growth and reached an all-time high by year's end, one of the 
strongest performances in the developed world.  Economists 
attribute ISEQ's robust showing to Ireland's broad-based 
economic growth, the likely under-valuing of Irish stocks 
earlier in the decade, and improved prospects for the 
European economy.  In 2005, ISEQ opened up a secondary 
market, the Irish Enterprise Exchange (IEX), which caters to 
smaller firms with a minimum market cap of euro 5 million. 
 
¶36.  In May 2003, the Central Bank of Ireland was reorganized 
into the Central Bank and Financial Services Authority of 
Ireland (CBFSAI), in accord with the Central Bank and 
Financial Services Authority of Ireland Act 2003.  Under the 
legislation, the Governor of the CBFSAI has responsibility 
for the overall stability of the Irish financial system.  The 
legislation also established the Irish Financial Services 
Regulatory Authority (IFSRA), which is an autonomous but 
constituent part of CBFSAI that regulates financial services 
institutions in Ireland and, from 2006, the Irish Stock 
Exchange.  IFSRA took over this responsibility from a mix of 
government bodies, including: the Central Bank, the 
Department of Trade, Enterprise, and Employment (DETE), the 
Office of Director of Consumer Affairs, and Registrar of 
Friendly Societies.  The legislation also enhanced the 
regulatory powers given to IFSRA, particularly in consumer 
protection. 
 
¶37.  With the advent of Economic and Monetary Union (EMU), 
the Central Bank is now a member of the European System of 
Central Banks (ESCB) whose primary objective is to maintain 
price stability in the euro area.  Ireland no longer operates 
 
DUBLIN 00000060  008.2 OF 014 
 
 
an independent monetary policy.  Rather, ESCB formulates and 
implements monetary policy for the euro area, and the Central 
Bank implements that policy at the national level.  The 
Governor of the Central Bank is one of 18 members of the 
Governing Council for the ECB and has an equal say in the 
formulation of monetary and interest rate policy.  The other 
main tasks of the Central Bank include: issuing euro currency 
in Ireland; acting as manager of the official external 
reserves of gold and foreign currency; conducting research 
and analysis on economic and financial matters; overseeing 
the domestic payment and settlement systems; and, managing 
investment assets on behalf of the State. 
 
¶38.  The Irish Takeover Panel Act 1997 governs company 
takeovers.  Under the Act, the "Takeover Panel" issues 
guidelines, or "Takeover Rules," which aim to regulate 
commercial behaviour in the context of mergers and takeovers. 
 According to minority squeeze-out provisions in the 
legislation, a bidder who holds 80 percent of the shares of 
the target company can compel the remaining minority 
shareholders to sell their shares.  There are no reports that 
the legislation has been used to prevent foreign takeovers 
specifically, and, in fact, there have been several 
high-profile foreign takeovers of Irish companies in the 
banking and telecommunications sectors in recent years.  The 
EU Directive on Takeovers provides a framework of common 
principles for cross-border takeover bids, creates a level 
playing field for shareholders, and establishes disclosure 
obligations throughout the EU.  The Directive is to be 
implemented in Ireland in 2006, though many of its principles 
have already been enacted in the Irish Takeover Panel Act 
¶1997. 
 
 
¶A. 10. Political Violence 
------------------------- 
 
(I) Impact of Northern Ireland Instability 
 
¶39.   In the past, political instability and violence in 
Northern Ireland were thought to affect the Republic of 
Ireland.  In reality, however, there has been little 
spillover of violence or instability, especially since the 
late 1970s and particularly after the cease-fires of 1994. 
The growth of business investment and confidence in Northern 
 Ireland since the cessation of widespread violence has 
benefited the Republic of Ireland, with cross-border trade 
reaching nearly euro 2.5 billion in 2004.  No violence 
related to the situation in Northern Ireland has been 
specifically directed at U.S. citizens or firms located in 
the South. 
 
¶40.  The 1998 ratification of the Good Friday Agreement by 
large majorities in both Ireland and Northern Ireland has 
further diminished the potential for violence.  Since then, 
however, groups opposed to the peace process have continued 
to commit acts of criminality and terror in Northern Ireland 
and on mainland Britain.  There have been no serious 
incidents in the Republic of Ireland.  In mid-2005, the Irish 
Republican Army announced that it would no longer pursue its 
objectives through violent means.  Independent observers 
subsequently confirmed the decommissioning of IRA weapons. 
Efforts in pursuit of a final peace agreement, including 
restoration of cross-community participation in local 
government, were set to continue into 2006. 
 
(II) Other Acts of Political Violence 
 
¶41.  In 1997 and 1998, an Irish environmental group 
vandalized two separate Irish crop trial sites, involving 
agricultural biotechnology crops.  The trials were conducted 
by the U.S. firm, Monsanto.  Irish police investigated both 
incidents and criminal charges were filed in both cases. 
There have been no further incidents involving subsequent GMO 
plant trials in Ireland. 
 
¶42.  There have been no other recent incidents involving 
politically motivated damage to foreign investment projects 
and/or installations in the Republic of Ireland.  In 2003, 
several Irish citizens opposed to the Iraq War damaged U.S. 
military assets at Shannon Airport.  In 2004, one of these 
citizens was convicted in an Irish court and given a 
suspended sentence.  The trial of the other citizens involved 
in these acts is pending for 2006.  In late 2005, a group of 
opposition and independent Irish parliamentarians said 
publicly that they would not oppose further attacks on U.S. 
military aircraft transiting Ireland. 
 
 
DUBLIN 00000060  009.2 OF 014 
 
 
¶A. 11. a. Corruption 
-------------------- 
 
¶43.   Corruption is not a serious problem for foreign 
investors in Ireland.  The principal Irish legislation 
relating to anti-bribery and corruption includes the Public 
Bodies Corrupt Practices Act 1889, the Prevention of 
Corruption Act 1906, the Prevention of Corruption Act 1916, 
and the Prevention of Corruption (Amendment) Act 2001.  This 
body of law makes it illegal for Irish public servants to 
accept bribes.  The Ethics in Public Office Act 1995 provides 
for the written annual disclosure of interests of people 
holding public office or employment. 
 
¶44.    Ireland signed the UN Convention on Corruption in 
December 2003, and ratification is pending a review of the 
legal measures required for implementation.  In January 2000, 
the GOI introduced to Parliament the "Prevention of 
Corruption  (Amendment) Act, 2001," to ratify and implement 
the OECD Convention on Bribery.  The legislation, which 
enabled Ireland to ratify a number of conventions dealing 
with corruption drawn up by the European Union, the Council 
of Europe, and the OECD, came fully into force as law in 
November 2002.  Ireland formally ratified the OECD Convention 
in September 2003.  Ireland is also a member of the OECD 
Working Group on Bribery and the Group of States Against 
Corruption (GRECO).  Under the Prevention of Corruption Act, 
the bribery of foreign officials is a criminal offense. 
Bribery of foreign officials may also invalidate a contract 
that a party is seeking to enforce in Ireland. 
 
¶45.  A number of ongoing judicial "Tribunals" are seeking to 
establish whether political donations by certain Irish 
companies in the late 1980s and early 1990s can be linked to 
favorable government decisions, mostly at the local level, in 
zoning and tax matters.  There is also media and public 
concern that business interests may have compromised Irish 
politics in the late 1980s and early 1990s.  Despite these 
reports of payments to political parties and figures in the 
1980s and early 1990s, there remains no indication that 
foreign businesses or investors have had to make such 
payments or been approached to make such payments to conduct 
business during the period in question or in years since. 
 
¶46.  In late 2004, the Government launched an inquiry into 
allegations that a Cabinet Minister approved for his former 
Department a no-bid public relations contract worth euro 
300,000 for a political associate.  The inquiry exonerated 
the Minister in 2005.  In late 2005, a junior Cabinet 
Minister resigned following press reports that a construction 
firm had worked on his house for free and that he had offered 
improper financial incentives to his office staff. 
 
¶47.  The Irish police investigate allegations of corruption. 
If sufficient evidence of criminal activity is found, the 
Director of Public Prosecutions prepares a file for 
prosecution.   A small number of public officials have been 
convicted of corruption and/or bribery in the past, although 
it is not a common occurrence. 
 
b. Bilateral Investment Agreements 
---------------------------------- 
 
¶48.    Ireland's only bilateral investment protection 
agreement is with the Czech Republic.  In addition, Ireland 
has bilateral tax treaties with the following countries: 
Australia, Austria, Belgium, Bulgaria, Canada, China, 
Croatia, Cyprus, the Czech Republic, Denmark, Estonia, 
Finland, France, Germany, Hungary, India, Italy, Israel, 
Japan, Korea (Rep. of), Latvia, Lithuania, Luxembourg, 
Malaysia, Mexico, Netherlands, New Zealand, Norway, Pakistan, 
Poland, Portugal, Romania, Russia, Slovak Republic, Slovenia, 
South Africa, Spain, Sweden, Switzerland, UK, the United 
States, and Zambia.  Treaties with Greece and Iceland were 
signed in November and December 2003, respectively, and 
became effective for the 2005 tax period.  A treaty replacing 
the existing treaty with Canada was signed in October 2003. 
Parliamentary procedures to bring the treaty into force were 
completed by Ireland in December 2004 and by Canada in April 
2005, and the treaty will become effective for the 2006 tax 
period.  A new agreement with Chile was signed in June 2005. 
The agreement will likely enter into force in 2006, subject 
to completion of the necessary parliamentary procedures by 
Ireland and Chile.  A protocol amending Ireland's agreement 
with Portugal was signed in November 2005 and will also 
likely enter into force in 2006, pending parliamentary 
procedures in both countries.  New treaties with Argentina, 
Egypt, Kuwait, Malta, Morocco, Singapore, Tunisia, Turkey and 
 
DUBLIN 00000060  010.2 OF 014 
 
 
Ukraine are being negotiated.  Existing treaties with Cyprus, 
France and Italy are in the process of re-negotiation.  These 
agreements serve to promote trade and investment between 
Ireland and the partner countries that would otherwise be 
discouraged by the possibility of double taxation. 
 
c.  OPIC and Other Investment Insurance Programs 
--------------------------------------------- --- 
 
¶49.   Since 1986 the U.S. Overseas Private Investment 
Corporation (OPIC) has been authorized to operate in Ireland 
as part of the U.S. effort to support the process of peace 
and reconciliation in Northern Ireland.   There is some 
potential in Ireland for OPIC's credit guarantee programs. 
No other countries have an investment insurance program in 
Ireland.  Ireland is a member of the Multilateral Investment 
Guarantee Agency (MIGA). 
 
¶50.   The estimated annual U.S. dollar value of local 
currency likely to be used by the U.S. Embassy in Ireland 
during 2006 is approximately USD 12.4 million.  The Embassy 
purchases local currency through centralized bulk purchasing 
arrangements at a competitive market rate.  Prospects for 
eurozone economic growth and for the U.S. trade and budget 
deficit positions will likely determine USD and euro currency 
movements through 2006. 
 
d. Labor 
-------- 
 
¶51.  In 2005, employment levels in Ireland reached historical 
highs, the result of continued strong economic growth.  As of 
the third quarter of 2005, the number of people employed was 
1.9 million, an increase of roughly 96,000, or 5.0 percent, 
compared to the third quarter of 2004.  Since 1994, 
employment growth has averaged roughly 4.0 percent, with 
lower rates recorded in 2002 and 2003 following the post 9-11 
global economic slowdown.  Comparing the third quarters of 
2004 and 2005, the largest increase in employment was in the 
vibrant (housing) construction sector, which added 30,400 
jobs.  There was also a gain of 20,200 jobs in business and 
financial services during the year.  Employment in production 
industries, including manufacturing, fell by 11,000, however, 
continuing a trend from 2004. 
 
¶52.  In contrast to 15.6 percent unemployment in 1993, 
Ireland registered 4.2 percent unemployment in the second 
quarter of 2005.  This was the lowest unemployment rate among 
EU Member States and slightly less than half the eurozone 
average.  The number of unemployed people in the third 
quarter of 205 was 96,700, representing an increase of 2,800 
compared to the third quarter of 2004.  Local economists 
believe that the Irish economy is as close to full employment 
as possible, with employers reporting difficulties in 
recruiting workers.  Whereas Ireland's primary policy goal 
was once job creation, the focus of government strategy has 
shifted to upgrading skills and increasing the number of 
workers in technology-intensive, high-value sectors. 
 
¶53.  Irish labor force regulation is less restrictive 
compared with most continental EU countries.  The Irish 
workforce is characterized by a high degree of flexibility, 
mobility, and education.  There is a relative gender balance 
in the workforce, with 1.2 million males and 882,000 females 
currently employed.  This gender balance reflects a change in 
social mores that has facilitated a surge in female 
employment since the mid-1980s 
 
¶54.  With the tightening of the labor market, wages remain on 
an upward growth curve.  As of the third quarter of 2005, 
average annual earnings per worker were euro 35,506, a 3.5 
percent increase over the third quarter of 2004.  Between 
1998 and 2003, compensation per employee increased by 37.1 
percent, compared with 8.7 percent in Germany over the same 
period.  The minimum wage was euro 5.20 when it was first 
introduced in 2000 and rose to euro 7.65 in 2005.  Employees 
earning the minimum wage will not have to pay personal income 
tax in 2006. 
 
¶55.  Unprecedented immigration levels, particularly from 
Eastern Europe, have added a new dynamic to the Irish labor 
market.  Of the 96,000 new workers added to the labor force 
between the third quarters of 2004 and 2005, roughly 40,000 
were immigrants, working mostly in the construction and 
lower-end services sectors.  According to some sources, the 
number of people taking up residence in Ireland since the 
accession of new EU Member States in 2004 may be as high as 
100,000.  Irish labor unions have expressed concern over 
 
DUBLIN 00000060  011.2 OF 014 
 
 
immigration trends and the possibility of displacement of 
Irish workers.  In late 2005, a labor dispute over plans by a 
ferry company to replace Irish workers with Eastern European 
migrants at lower wages prompted large-scale, peaceful 
demonstrations nationwide in support of protective mechanisms 
for both Irish and migrant laborers.  Economists point out, 
however, that yearly job creation in Ireland is currently 
sufficient to accommodate both Irish workers and immigrants. 
Economists also hold that that Ireland will require 50,000 
immigrants a year over the short term to sustain high rates 
of economic growth. 
 
¶56.   The Irish system of industrial relations is a voluntary 
one.  Pay levels and conditions of employment are generally 
agreed through collective bargaining between employers and 
employees.  Since 1987, collective bargaining has taken place 
under the framework of a series of national economic 
programs, negotiated by representatives of employers, trade 
unions, farmers, and the government.  This consensual "Social 
Partnership" approach has been accompanied by a marked 
improvement in the industrial relations climate since the 
mid-1980s.  Working days lost as a result of industrial 
disputes amounted to 37,482 in 2003 and 20,784 in 2004 (a 
fraction of the total days lost through industrial action in 
the 1980s and early 1990s). 
 
¶57.   The latest national economic program, "Sustaining 
Progress", was agreed under the Social Partnership framework 
in February 2003 and approved by Ireland's major unions in 
August 2004.  The 18-month agreement exchanges a 7 percent 
wage increase for industrial relations stability.  While the 
package will cost the GOI - Ireland's largest employer - an 
estimated euro 2.5 billion, private industries unable to pay 
the full 7 percent due to competitive pressures will be 
permitted to pay lesser increases or none at all.  As part of 
the package, the GOI committed to provide an increased supply 
of "affordable housing" and to amend legislation and 
statutory codes to strengthen the procedures by which unions 
can represent their members' interests.  In addition, the GOI 
enhanced statutory redundancy terms to provide released 
employees with two weeks' compensation for each year of 
service.  Negotiations on a successor program to "Sustaining 
Progress" were set to begin in early 2006. 
 
¶58.  Trade union demands for mandatory trade union 
recognition in the workplace are strongly resisted by 
employers.  While the Irish constitution guarantees the right 
of citizens to form associations and unions, Irish law also 
affirms the right of employers not to recognize unions and to 
deal with employees on an individual basis.  Currently, 
roughly 33 percent of workers in the private sector are 
unionized, compared to 95 percent in the public sector. 
Among foreign-owned firms, roughly 80 percent of workers do 
not belong to unions.  Employers also strongly oppose trade 
union demands for greater "partnership" between employees and 
employers at the enterprise level, including worker 
participation in managerial decisions through German-style 
"work councils."  Some progress has been made, however, with 
regard to increased profit-sharing. 
 
e.  Foreign Trade Zones/Free Ports 
---------------------------------- 
 
¶59.   The Shannon duty-free Processing Zone (SDFPZ) was 
established by legislation in 1957.  Under the legislation, 
eligible companies operating in the Shannon Free Zone are 
entitled to the following benefits: goods imported from 
non-EU countries for storage, handling or processing are duty 
free; no duty on goods exported from Shannon to non-EU 
countries; no time limit on disposal of goods held duty-free; 
minimum customs documentation and formalities; no Value Added 
Tax (VAT) on imported goods, including capital equipment; 
choice of having import duty on non-EU product calculated on 
its landing value or selling-out  price.  Qualifying criteria 
for eligible companies include employment creation and 
export-orientation.  Foreign-owned firms in the Shannon Free 
Zone have the same investment opportunities as indigenous 
Irish companies.  As of 2005, there were 110 internationally 
traded manufacturing and service companies established in the 
Shannon Free Zone, employing roughly 7,500 workers and 
generating about euro 2.5 billion in exports annually.  U.S. 
companies, which make up 57 percent of the firms operating 
out of Shannon, include GE Capital, Bristol Myers Squibb, 
DHL, UPS, Pfizer, Intel, Symantec, and Cabletron.  The 
Shannon Free Zone is technically an asset of SFADCO, although 
the Government is currently reviewing a proposal to place the 
zone under the authority of Shannon Airport as a means of 
airport funding. 
 
DUBLIN 00000060  012.2 OF 014 
 
 
 
¶60.  Duty free exemptions are available also to companies 
operating in Ireland's major deep-water port at Ringaskiddy 
in County Cork, although these have been used infrequently in 
recent years. 
 
f.  Foreign Direct Investment Statistics 
---------------------------------------- 
 
¶61.  According to Ireland's Central Statistical Office (CSO), 
the stock of FDI in Ireland for end-year 2004 stood at euro 
171.8 billion, or 117 percent of nominal 2004 GDP and a 2.7 
percent drop from 2003.  Ireland received FDI flows worth 
euro 8.98 billion in 2004, or 6 percent of nominal 2004 GDP 
and a 55 percent decline from 2003.  (Note: Different FDI 
calculation methods likely explain discrepancies with U.S. 
Department of Commerce statistics, which show U.S. FDI flows 
alone to Ireland as USD 10.4 billion in 2004, roughly the 
same amount as total FDI flows according to Irish statistics. 
 Further discrepancies are noted in the tables below.) 
 
¶62.   In 2004, the 1,022 companies supported by IDA Ireland, 
including 478 U.S. firms, spent euro 15.5 billion in the 
Irish economy from their annual sales of euro 75 billion 
(exports of euro 71 billion) and paid over euro 2.5 billion 
in corporate tax.  During 2005, IDA negotiated 71 new 
business projects with new and existing clients, which 
involved a total investment commitment of over euro 745 
million over the coming years.  IDA also supported 50 R&D 
investment projects involving a total investment by business 
in excess of euro 260 million, an 85 percent increase in 
value over 2004. 
 
¶63.  According to the American Chamber of Commerce, U.S. 
firms announced 34 investment projects in 2005, creating 
3,400 new jobs.  Of these projects, roughly a third were new 
investments, such as by Yahoo and Amazon, and two-thirds were 
expansion programs, such as by established companies Intel, 
Dell, Bisys, PFPC, and International Fund Service.  Roughly 
90 percent of FDI projects that came to Ireland in 2005 were 
of U.S. origin.  New investments were evenly split between 
the east coast, inclusive of Dublin, and the remainder of the 
country, with the largest regional clusters in Cork, Galway, 
and the Southeast.  The U.S. Department of Commerce estimates 
that U.S. companies' average return on investment (ROI) in 
Ireland is 24 percent. 
 
 
Table 7.1: Stock of U.S. Investment in Ireland 
(Millions of dollars; historical cost basis) 
 
                          2002      2003        2004 
 
All Industries            46,617    55,463      73,153 
 
Manufacturing             13,427    15,002      21,290 
 
  Food                    157       193         241 
 
  Chemicals               6,207     6,089       10,019 
 
  Metal                   22        33          51 
 
  Industrial machinery    23        24          26 
 
  Computers/Electronic    3,241     3,992       5,571 
 
  Transportation Equipment unavailable  unavailable   285 
 
Wholesale trade            2,680     2,998      4,598 
 
Information                10,362    14,048     17,029 
 
Finance/Insurance          7,520     8,681      11,101 
 
Depositary Institutions    145       445        unavailable 
 
Prof. Services             1,459     1,655      1,968 
 
Source:  U.S. Department of Commerce, Survey of Current 
Business 
 
 
Table 7.2: Investment Flows into Ireland by Country Origin, 
2004 
(in euro millions) 
 
Total                   8,987 
 
DUBLIN 00000060  013.2 OF 014 
 
 
 
UK                      -2,373 
 
Belgium/Luxembourg      5,581 
 
France                  846 
 
Germany                 921 
 
Italy                   271 
 
Netherlands             5,710 
 
Canada                  -271 
 
United States           3,996 
 
Japan                   1,392 
 
Source: Ireland Central Statistical Office (CSO) website 
 
(Note: According to the U.S. Department of Commerce, U.S. 
investment flow into Ireland in 2004 was USD 10.4 billion. 
Also, investment by U.S. companies in Ireland is often 
effected through intermediary subsidiaries located outside 
the United States.  According to the CSO, a sizeable 
proportion of the Dutch investment cited above originated in 
the United States.) 
 
 
Table 7.3: Investment Stock in Ireland by Country Origin, 2004 
(in euro millions) 
 
Total                   171,766 
 
UK                      24,706 
 
Belgium/Luxembourg      27,071 
 
France                  3,224 
 
Germany                 2,484 
 
Italy                   4,854 
 
Netherlands             56,069 
 
Canada                  5,987 
 
United States           25,825 
 
Source: Ireland Central Statistical Office (CSO) website 
 
(Note: According to the U.S. Department of Commerce, the 
stock of U.S. investment in Ireland in 2004 was USD 73.2 
billion.) 
 
 
Table 7.4: Total Employment by Sector in IDA-Supported 
Companies 
 
 
                                 2002       2003      2004 
 
Information/Communications 
Technologies                     43,499     41,362    41,887 
 
 
Pharmaceuticals/Healthcare       19,016     19,326    19,985 
 
 
Engineering                      16,536     15,372    13,989 
 
Miscellaneous Industry           10,047     9,282     8,243 
 
International and Financial 
Services                         43,281     43,407    44,842 
 
 
Total                            132,379    128,749   128,946 
 
Source: IDA Ireland Annual Report, 2004 
 
 
 
Table 7.5: Origins of IDA-Supported Companies, End-2004 
 
 
 
DUBLIN 00000060  014.2 OF 014 
 
 
Country          Number of Firms          Employment 
 
United States          478                90,236 
 
United Kingdom         116                6,824 
 
Germany                140                11,158 
 
Rest of Europe         209                16,163 
 
Asia/Pacific           46                 3,002 
 
Rest of World          33                 1,563 
 
Total                  1,022              128,946 
 
Source: IDA Ireland Annual Report, 2004 
 
 
 
Table 7.6: Major U.S. Investments in Ireland 
 
 
Company                                        Location 
 
Apple Computers                                    Cork 
 
AIG Europe                                       Dublin 
 
Bausch & Lomb                                 Waterford 
 
Berlitz                                          Dublin 
 
Bisys                                         Waterford 
 
Boston Scientific                 Galway, Cork, Wexford 
 
HP-Compaq Computers                      Galway, Dublin 
 
Citibank                                         Dublin 
 
Dell Computers                         Limerick, Dublin 
 
Eastman Kodak                            Limerick, Cork 
 
Fidelity                                         Dublin 
 
Gartner Group                                   Limerick 
 
Hertz                                             Dublin 
 
Hewlett-Packard                         Leixlip, Kildare 
 
IBM Ireland                                       Dublin 
 
Intel Ireland                            Dublin, Leixlip 
 
Johnson & Johnson                                 Dublin 
 
Millipore Ireland BV                                Cork 
 
Motorola                                            Cork 
 
Netscape Communications                           Dublin 
 
Novartis                                            Cork 
 
PFPC                                      Navan, Wexford 
 
Prudential Insurance of America              Letterkenny 
 
3Com                                              Dublin 
 
United Airlines                                   Dublin 
 
US Robotics                                       Dublin 
 
Woodchester Investments                           Dublin 
 
Wyeth Biopharma                                   Dublin 
 
Source: IDA Ireland Annual Report, 2004 
KENNY