By Business & Finance 
When speaking with our global clients and contacts, one message is clear — Ireland has firmly re-established credibility as a nation capable of addressing the challenges we face, writes Shaun Murphy.
The international evidence is compelling. Forbes magazine recently named Ireland as the best country in Europe to start a business. The IBM Global Location Trends Report credits Ireland for being first in the world for inward investment by quality and value. While the IMD World Competitiveness Yearbook 2012 ranks Ireland first in the world for availability of skilled labour, flexibility and adaptability of workforce and attitudes towards globalisation. Total investment by US companies into Ireland is greater than that made into Brazil, Russia, India and China combined. One might ask why?
There are a myriad of reasons but one is self evident – our capability to deliver. Businesses do not make long-term investment decisions about a country if they doubt its capability to deliver. The majority of global companies in a range of sectors from technology and pharmaceuticals to financial services and medical devices have chosen to invest in Ireland. Our key selling points bear repetition – for they are vital to much of the progress we are making. As an English speaking country in the eurozone we have a uniquely youthful population and a highly regarded education system.
Furthermore our State agencies responsible for inward investment and supporting Irish business have a very strong market reputation. This is all underpinned by an attractive tax regime including a low rate of corporation tax of 12.5%, extensive double taxation agreements and an effective R&D tax credit regime. We also have a stable Government and strong and enduring cross-party consensus on the fundamentals of our inward investment policies. This long-term stability is hugely attractive to those looking for a place to do business. Essential components such as tax collection are highly competent. Despite our travails, there is continuing strong social cohesion – in stark contrast with the experience of many other countries.
Young entrepreneurs
Ireland’s youthful dynamic, tech-centric population attracts a disproportionately high number of young entrepreneurs – enthused by an ecosystem which combines an increasingly entrepreneurial friendly environment with a high quality of life. For example, the 2012 Global Entrepreneurship Monitor (GEM) Report indicates that Irish early-stage entrepreneurs have a stronger focus on international markets and exporting than their OECD counterparts – demonstrating our global perspective.
Fortunately, we also have a Government which generally understands the value and needs of start-ups, a point reinforced by the World Banks highlighting of Ireland as ‘the easiest location in Europe in which to start a business’. Ireland has significantly enhanced the ease of obtaining visas for those engaged in various sectors. Highlighting Ireland’s unique European appeal for mobile talent, the most recent UN Human Development Index (HDI) shows the quality of life in Ireland significantly higher than in countries such as the UK, France and Denmark.
So what of the future? Like all OECD Governments, ours faces the difficult task of getting the balance right between taxation and spending. Levels of public and private debt remain obstinately high. As all European finance ministers can attest, reining in unsustainable public spending whilst ensuring sufficient domestic demand is incredibly difficult.
Furthermore, despite our success in restoring stability, there is a continued risk that longer term policy choices around key issues are being under prioritised. Thus some fundamental building blocks of an economy such as education and capital investment almost certainly need greater focus to ensure that current policies also address future economic needs. Inevitably, much of our future will be dependent on attitudes towards Ireland – whether they are Irish at home or abroad or those considering us from outside. Attracting and keeping mobile talent is becoming an incredibly competitive battle. Smart people – global investors, managers and entrepreneurs have choices in terms of where they choose to live and work. We need to be both aware of this and proactive in giving them as many opportunities as possible to choose Ireland. Thus, for example it is vitally important that personal tax rates are attractive in a global context. This is a significant challenge and one which we cannot afford to ignore.
Celebrating success
We also need to develop as much home-grown success as we can. Our agribusiness sector for example employs over 160,000 people and is performing exceptionally well globally. The sector includes many relatively modestly sized and ambitious companies starting to build scale and expand overseas. They employ significant numbers in locations that may not always attract multinational employers and have proven their value in maintaining and growing employment.
All told and despite the challenges, the good news clearly outweighs the bad. Votes of confidence in Ireland’s future keep coming. For example, Aer Lingus has recently announced the commencement of direct services from Dublin to both San Francisco and Toronto and passenger traffic through Irish airports has started to grow again. No one score will change the game but there is enough evidence that the trends are moving in the right direction.
What makes Ireland unique is that we are small, connected, and incredibly nimble. This is unparalleled anywhere else in Europe. This combination of tech, talent, track-record and tax works well and has proven very attractive for both established businesses and innovative start-ups. Ireland means business – so spread the word.
