« Basel would be weakened »-Roche site manager via OECD minimum tax rate

« Basel location would certainly be weakened »: Roche site manager via the OECD minimum tax rate

Jürg Erismann on the effects of the location package on research, development and the Pharma region Basel.

Roche and the planned investments in the United States of $ 50 billion to expand production and research locations dominate the headlines. What is the mood in the company and especially among the employees?

Jürg Erismann: The mood is good. We have just successfully completed our 1st quarter. It is also not uncommon for us to invest in our largest market. We also have larger waves in investments in Basel and another 1.2 billion Swiss francs in front of us. A 72 meter high laboratory building for CHF 450 million, which is also part of research and development department in Basel, is being built here next door.

The United States is a big market for Roche. We generate around 50 percent of our total turnover in the pharmaceutical division. And that the company is fundamentally willing to invest is a good message for the employees. Investments are always a commitment to the future. I don’t see unrest among the employees.

Which?

The recognition of patents and fast approvals of our innovative medication and diagnostics are essential for us. This is extremely important for patients. The OECD tax is of course a deterioration. At the Basel location, we are in a constant competition with other locations worldwide that offer as good conditions as Basel. It is therefore important to ensure further good framework conditions. For me as a location manager here in Basel, this is very important.

What are your fears regarding OECD tax?

Switzerland has accepted the OECD reform, assuming that all countries would implement it. This means that we now have countries with which we are in competition where the tax does not come into play. We are on the go with unequal skewers. So I think, the compromise, as it is on the table as part of the control package, is very important to counteract. But also to see that the important aspects for the region are rewarded. And that is the innovation that is the next step into the future for us as a company.

Coordination of May 18th

How important is the upcoming coordination for research?

Of course, it is a question of whether innovation is rewarded in research or whether it is indirectly punished for taking place here. We have a heavyweight in research and development in Basel. However, the centers in the United States are in a similar size – as well as those in Asia. Research takes place where the environment is positive for companies. That means: If we find sufficiently qualified workers, it is an environment that is attractive for researchers, where the life science hub has a critical size of high quality with universities.

Apart from the location package, which we coordinate: Do you have a request to politics where you would have to put your finger on?

Here in the region we have great interest in the free movement of people and in this context about bilateral contracts. Half of the employees at the Basel location are EU citizens. Orders with the EU are of central importance for Basel. We have a great interest in the fact that the universities are anchored in the European network and can also carry out projects that are relevant for the European research network Horizon.

Are you aware of the national level of the draft horses here?

We are in continuous exchange with the most important actors. I think the people who deal with the Life Sciences industry are aware of the importance. But I would not say that I can say that about the entire parliament. We do a large part of the entire economy in Switzerland, this cannot be explained by the small Swiss market, but with the great added value of our industry.

You pay high company taxes. Are you aware of enough in the city?

Probably not everywhere. Companies affected by the increase in the OECD tax reform pay around 80 percent of corporate taxes. This is a order of magnitude that can be imagined and you can see the importance of the present compromise for Basel.

If there was a popular one on May 18: How would you get that?

One will then ask: Is the value of what is done here for research and development? And is the attitude towards the economic importance for the canton or not?

Can you make a forecast?

I don’t want to go into speculation. But I remind you that there was a strong assumption by all parties in parliament and that there is a strong foundation of the supporters, from left to right. We talked about innovation promotion as part of the package, and there is also the social and environmental share, which is not insignificant. Therefore, a wide range of society will benefit from the overall package. Therefore, I am positive that the advantages of the compromise are seen.