Social media firms latest to make Irish eyes smile

Is HMG losing out in the race to attract high tech companies to the UK to our neigbours across the Irish Sea?

Ireland, despite its financial woes, still remains a magnet for social media companies and other cutting edge firms, it seems, based on the news Twitter is the latest hi-tech giant to set up shop there.

The company that invented the 140 word Tweet used one of its micro blogs to announce its decision to join social media leaders LinkedIn, Google and Facebook by opening an international office in Dublin.

Internet companies such as PayPal, eBay and Zynga have joined older enterprises Citigroup, SAP, Accenture, Dell, Intel and Microsoft in making their European beachheads there, not along the M4 corridor as used to be standard operating procedure for US tech outfits.

They have been lured by a combination of low rates of corporate tax, the opportunity to remit profits to other parts of the world more easily and an educated, English speaking workforce.

Eire's Industrial Development Authority (IDA), which spearheads the drive to attract inward investment to the country, claims thousands of well-paid, good quality local jobs have been created by its favourable business climate.

"IDA is absolutely thrilled that Twitter has decided to establish an international office inIreland. Twitter is a fantastic addition to our dynamic digital media cluster and we are excited to support the company's continued international growth." said Barry O'Leary, its chief executive.

Ireland is ranked third in the EU by the World Bank in terms of ease of doing business and fourth in the world for the availability of skilled labour and openness to new ideas.

The European Commission forecasts that the cumulative fall in Irish unit labour costs will be over 8% in the period 2008-2012 - making Ireland even more attractive for foreign direct investment, it seems.