Low corporation tax vital, says Shannon Development CEO

SHANNON Development CEO, Dr Vincent Cunnane has lauded the new Government’s defence of Ireland’s low corporation tax.
Dr Cunnane was speaking at the launch of Shannon Development’s 2010 annual report, which showed the company recorded a deficit for the year of €16,578,000, the vast majority of it down to depreciation and impairment of property assets totalling €13.85 million. “When you strip out the depreciation, it’s less than three million,” Shannon Development finance manager, Jennifer Kearns commented. The deficit for 2010 was less than for 2009, when it was a little over €17.3m.
The report also showed that 4% of jobs at Shannon Free Zone were lost last year but on a more positive note, it found that tourism is now growing again, after a number of difficult years.
With regard to the corporation tax, Dr Cunnane said, “The Government is coming in, they’re making decisions and we’re delighted that they’re putting such store by the 12.5% corporation tax. It’s vitally important for Ireland. We saw it with the Zagg announcement, where Brian Packer said he’s in Shannon because of the 12.5%.”
At the report launch, Shannon Development chairman, John Brassil acknowledged 2010 had been a tough 12 months. “For Shannon Development, 2010 was no different than for any other company, very challenging, very difficult and we endeavoured to be as effective as possible with reducing resources. As a property company, dependent mainly on property for our income, our plight was even more difficult. However, like all, we are learning to do more with less.”
His view was echoed by Dr Cunnane, who said so far this year there have been positive signs.
“As the chairman said, 2010 was a difficult year across a number of sectors but there were a number of positive signs towards the end of the year. Certainly, we see 2010 as a year of stabilisation and hopefully what has happened in 2011, at least until the last few weeks when the economic environment might have changed again internationally, has been encouraging.”
While the last three years have been very tough, he said Shannon Development has still performed well and has learned from the issues it has faced.