Diplomat pushes for Taiwan investment in Ireland

Taipei, May 18 (CNA) Despite Ireland's economic woes, it is still a good option for Taiwanese investors because of its policy on direct foreign investment, which promises low corporate taxes and high incentives for foreign investors, Taiwan's representative to that country said Tuesday. Ireland's transparency, quality higher education, clear policies and sound integration of corporate and academic resources position it to bounce back soon from its PIIGS listing, said David Lee, head of the Taipei Representative Office in Ireland.

The PIIGS acronym refers to the European countries of Portugal, Italy, Ireland, Greece and Spain, which have been plagued by government deficits, huge national debts and high unemployment rates.

According to the British Broadcast Corporation (BBC) , Ireland's estimated gross debt in 2010 is expected to be 82.9 percent of its gross domestic product (GDP) and its current jobless rate is 13.3 percent.

Nonetheless, Lee said, Ireland could serve as a springboard or gateway for Taiwanese businesses looking to break into European markets.

"Ireland will be able to rise from its economic slump and other troubles because it has a sound national structure and has always been able to adapt quickly," said Lee.

In the two decades before Ireland was hit by the 2008 financial crisis, it was known as the Celtic Tiger because of its strong economy and fast economic growth, Lee noted.

However, several Taiwanese investors have pulled out of Ireland recently and have opted to relocate in other countries such as Poland because of rising wages, he said. Taiwan has experienced a similar problem of high production costs forcing local businesses to move to China, he noted.

"The more I learn about Ireland, the more similarities I see with Taiwan, " said Lee, who has been stationed in Dublin since May 2008.

In some ways, Ireland-United Kingdom (U.K.) relations are very much like Taiwan-China relations, he said.

Like Taiwan, "Ireland is an island country off the coast of a regional power," he said. "Some 70 percent of Irish exports go to the U.K. market, while 40 percent of Taiwan's exports are to China." In addition, Ireland and Taiwan are both facing the challenge of moving up the value chain in terms of industry upgrade and corporate branding, Lee said.

He encouraged other Taiwan businesses to follow in the footsteps of G-LED Lighting -- a green energy manufacturing company that has invested 5 million euros in Ireland -- and take advantage of the incentives being offered and the country's focus on developing green energy, its financial sector, and the medical equipment and bio-tech industries.

He also urged that more Taiwan students and tourists visit Ireland, which he said is known for its rich history, literature and scenery.

Since Ireland granted Taiwan visa-free status last year, the number of Taiwan tourists to that country has increased and "it is now common to see Taiwanese tour groups on the streets of Dublin," Lee said. (By Chris Wang) enditem /pc

Ex-Latvian president offers political insights

Taipei, April 13 (CNA) Former president of the Republic of Latvia Vaira Vike-Freiberga shared her observations on various political topics from her unique point of view as a psychologist Tuesday before concluding a week-long visit to Taiwan.

All countries are advised to use referendums cautiously because in some cases people tend to be misinformed, she told reporters, adding that her training in psychology gave her an advantage as "a good listener" in comparison to other politicians.

Vike-Freiberga, 72, visited Taiwan amid heated local debate on whether to hold a referendum on a proposed Economic Cooperation Framework Agreement (ECFA) between Taiwan and China aimed at lowering tariffs and relaxing trade regulations.

Citing the example of a failed ratification of the European Constitution in France in 2005, Vike-Freiberga said French voters did not vote for the Constitution not because they did not support the treaty but because they did not like the government led by then-President Jacques Chirac.

The failed first referendum on the Lisbon Treaty in Ireland in 2008, she added, was a classical case of misinformation because under Irish law the government is not allowed to promote its policy. The opposition gave the electorate false information and successfully prevented the passage of the referendum.

"This is the danger in referendum... It's very easy to mislead them (the voters) . Psychologically this potential of misinformation of the issue of referendum makes referendum, I think, an insecure instrument for finding out the true position of the people, " she said.

Vike-Freiberga was elected president of Latvia in 1999. In 2003, she was re-elected for a second term. During her tenure, she played a crucial role in leading Latvia to join the North Atlantic Treaty Organization (NATO) and the EU.

Vike-Freiberga, who has previously been nominated to run for the position of Secretary-General of the United Nations and for President of the European Council, declined to comment any further on Taiwan's political relations and economic initiative with China.

However, she said she saw nothing but a promising economic future for Taiwan because the country has always been at the forefront of innovation, development of high technology, and re-orienting itself to an economy of high value-added products, which she described as "the only way of survival in a modern world of free trade." In a free trade world, "you cannot protect yourself the way you did before, " but at the other end of the spectrum Taiwan is able to gain the access to the huge China market and create a huge opportunity, she said.

In terms of the sensitive agriculture issue, she acknowledged that it has been a complicated issue and "one of the thorniest problems in the world, which everyone has to face." "Any country has to think about having enough food to feed its people in case something happens. To some extent, each country has to produce some food, " she said, adding that this is why farmers in the EU are so heavily subsidized. (By Chris Wang) ENDITEM/J