Introduction – Irish creativity and cultural flair
Good morning everyone, I am delighted to be here today.
I would like to particularly welcome those of you who have travelled from overseas to attend this event in Dublin.
I know that these IFSE quarterly meetings provide a valuable opportunity for gaming companies to get together and discuss the common challenges and opportunities facing you.
For my own part, my recent engagements with the sector has included fighting zombies in Dublin, joining an ancient warring tribe in Cork and most recently blasting some stormtroopers in Galway.
If only all my engagements were so entertaining…
It is fitting that all of you are here today to discuss the gaming industry. As some of you may know Ireland throughout the ages has been known as the land of story tellers.
This creativity and cultural flair has manifested itself in world famous Irish actors, musicians and authors. But it is also a huge advantage when it comes to less obvious areas such as technology innovation where creative entrepreneurs are building successful new companies using their natural passion and creativity.
This is why the gaming industry in Ireland will be an area with exciting potential as it grows and expands.
And the message I would like to convey to you today is that the Government wants to do everything it can to foster this growing industry and by demonstrating that we are very much open for business.
This is part of the Government’s mission to make Ireland the best small country in the world to do business by 2016.
Economic outlook
Those of you visiting today are most likely well aware of the economic challenges that Ireland, along with the rest of Europe, has faced in the past three years.
We continue to deal with these challenges and there are many reasons to be optimistic about Ireland’s future.
After three years of contraction our economy is now returning to growth and we expect that growth to continue despite the current challenging global environment.
Our exports are performing strongly with a 7% increase recorded in the first quarter of this year. A similar increase is forecast for the year as a whole.
Crucially, our balance of payments is now in surplus, proving the strength of our economic sustainability.
Our competitiveness has improved significantly. Business costs have fallen across the economy and labour costs are expected to reduce further this year. Productivity grew last year at the highest rate since 2002.
Our current corporate tax system is a cornerstone of our economic policy and will remain so.
We have stabilised the banking sector. Restructuring is substantially underway with international approval.
We have secured reduced interest rates under the EU/IMF Programme which greatly increases our debt sustainability prospects.
International market sentiment is improving.
And we are continuing to attract very significant FDI.
Gaming sector
The new Government since taking office has been driving a new competitiveness programme as part of a wider economic strategy. This includes developing better supports and links for growing high potential sectors, such as the gaming industry.
Deputy Paschal Donohoe has been enthusiastic in highlighting the potential of the industry. The Programme of Government specifically references the gaming industry and our commitment to deliver a better supportive environment for it.
As a result the Government has been engaging with the industry since we came into office last March.
Only a fortnight ago, I visited EA in Galway where 200 new jobs were announced increasing employment in the company to 400. I am pleased to welcome the Managing Director Jens Uwe Intat from EA who is here with us today.
I would also like to acknowledge the contribution of Activation Blizzard which employs 1200 people here and welcome its Managing Director, Thibaud de Saint-Quentin who is also present today.
And I know as well as these leading multinationals we have a strong record of world recognised games companies started here in Ireland such as Havok, Demonware, Popcap and Jolt.
These companies will be at the forefront of an industry that is expected to grow from €55 billion in 2010 to €82 billion in 2015.
Those who pleaded with their parents for a game for their Nintendo at Christmas are now in their 30’s and are spending their own salaries on Playstation 3's, smart phone games and online gaming. Even people of a slightly older generation such as myself don’t think twice about buying apps for smart phones or iPads.
In short, this industry is on the way up and my Government is determined to ensure that Ireland becomes a recognised regional cluster for gaming companies that will attract more investment.
We see the gaming sector as a key priority growth area for Ireland because it draws on many of our core strengths.
- We have a unique cluster of leading multinationals in the ICT sector including the European bases for some of the biggest internet companies;
- We have a young and well-educated population; and
- We have a competitive, open and flexible economy.
Our goal is to become a hub for the games sector as we have for ICT, medical devices and pharmaceuticals.
And we have already introduced a number of specific initiatives to achieve this.
Our indigenous Enterprise Agency, Enterprise Ireland is supporting start ups in the sector through its Competitive Start Fund for early stage Internet and games companies. The ten successful companies received €50,000 and the support of a business mentor to guide them. A further 15 companies have been selected with another call due before the end of the year.
EI also support management development of companies in the Internet/games industry through the iGap programme.
And we are supporting cutting edge research in the sector in a number of Higher Education Institutions including the Digital Enterprise Research Centre and System Dynamics Research Group in Galway and Game CORE in the Institute of Technology in Carlow.
This week we published a detailed Action Plan for the Sector which aims to make Ireland a Global Games Hub for the 21st Century.
This sets out a job target of 4,500 in core gaming companies by 2014 which will also likely result in a significant level of associated employment.
The Plan highlights opportunities in areas such as creative game development, advanced game servicing, enabling software and technology solutions and IP exploitation and online publishing.
I want to assure everyone that the publication of this plan is not the final step. You have already heard from the Minister for Jobs, Enterprise and Innovation and I have mandated him to drive action on foot of this report.
Conclusion
I would like to thank those here who have contributed to the development of this ambitious Plan and for your continued input.
My Government is determined to give you every support to ensure you grow and thrive here in Ireland.
I would very much welcome your views on anything more we should be doing to drive innovation, create jobs and attract new and long-established gaming companies to Ireland.
I wish you well with your deliberations and look forward to seeing the results in terms of jobs and growth in the coming years.
Thank-you.