Change to foreign investor scheme ‘could cost jobs’

Change to foreign investor scheme ‘could cost jobs’

‘The scheme requires a minimum investment of €1m, which must be pledged for a minimum of three years.’ (stock picture)

One of the largest funds authorised to market Ireland’s Immigrant Investor Programme (IIP) to foreign investors has raised concerns that millions of euro of enterprise investment and hundreds of jobs could be lost if the programme is scrapped or significantly altered on foot of a critical review by the Government.

Dublin-based Kylin Prime Group and an affiliate, Huawen Foundation, has warned that potential Chinese investors will move their cash to schemes in other EU countries if changes to the Irish scheme render it less attractive.

Kylin Prime Group is one of three major funds authorised by the Central Bank to raise capital through the IIP.

Kylin Group refused to disclose financial details about its Irish operation.

However, trade sources suggest it has secured in excess of €50m from Chinese clients for Irish investments since 2014, including a commitment of €13.5m for endowments to public projects benefiting the arts, sports, health, culture and education.

Cash-rich Chinese investors have piled into the IIP, representing more than 90pc of the 600 applicants to the scheme since it was launched in 2012.

The total approved investment figure for IIP funds and projects is expected to reach €291m by the end of 2018, based on current trends. The scheme requires a minimum investment of €1m, which must be pledged for a minimum of three years.

However, doubts over the future of the scheme have been raised following a critical interim review which concluded that the scheme delivered few sustainable jobs and that it risks crowding out local investment.

A number of recommendations were proposed by the Irish Government Economic and Evaluation Service to tighten potential loopholes in the programme.

Those are being considered by the board of the Irish Naturalisation and Immigration Service, which operates the scheme.

Sunday Indo Business

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, https://www.independent.ie/business/irish/change-to-foreign-investor-scheme-could-cost-jobs-37251713.html

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