Introduction
Ladies and Gentlemen,
I’m delighted to be here with you today at the City Club, thank you for inviting me. I’m delighted too to get a chance to talk to the Irish family scattered across the United States. I’m pleased to bring some good news from home.
Addressing you today, I’m aware that I follow in the footsteps of so many illustrious figures who, over the years, have had the privilege of sharing their thoughts and experiences from the podium of The City Club of Cleveland.
I am aware too that the City Club of Cleveland is celebrating its 100th Anniversary this year. I would like to take this opportunity to congratulate and pay tribute to all of those who have over the years established the City Club’s reputation as “A Citadel of Free Speech”.
Since its incorporation on October 28, 1912, the Club has gained a reputation for openness and inclusivity. For welcoming people of different beliefs, causes, social backgrounds. As it has for its commitment to the well-being of the City of Cleveland and all its citizens.
The Club’s longevity and its well-earned reputation as a bastion of free speech is a tribute to the calibre of the people who have been involved here over the past one hundred years. The world in 1912 was a very different place and yet, throughout all of those changes, the City Club of Cleveland has been a constant.
The Irish poet William Butler Yeats said
Of our conflicts with others we make rhetoric…of our conflicts with ourselves we make poetry…
Your century-long life has indeed been visited, punctuated, by conflict, often on a global scale. And as it has, the Citadel for Free Speech has been blessed with marvellous rhetoric, some of it poetry.
And when you examine the list of speakers: President Roosevelt, Archbishop Tutu, Bobby Kennedy, Rosa Parks…. You see that here were people not alone of fine words, but of finer courage, passion, ideas. Their voices echo still in our changed and changing world. Their owners part of the human chain that connects and comforts and challenges the people of this city and the world over a century. Today, I am humbled to follow in their footsteps.
The Irish and those of Irish descent have long been involved with the City Club. I think of Thomas Campbell, born in Enniskillen. Author, academic, community leader who served as President of the City Club and was instrumental in opening its doors to women. Thomas founded the Irish American Archives Society and was deeply involved in the Irish-American community of Cleveland. The story of Thomas Campbell is the story of so many Irishmen who made an indelible mark on this city and this country.
Tomorrow, I am visiting the Irish Cultural Garden. This beautiful space being representative of the historically-strong Irish presence in this great city. Of course as a Mayoman, I must talk of the strong bonds between Cleveland and Mayo. From the first immigrants we have been tied by bonds of deep, abiding friendship.
Macro-economic and Fiscal situation
When my Government came to office in Ireland eighteen months ago Ireland was in crisis. Our task was great and it was urgent. Four things we needed to do immediately.
Stabilise our finances
Rebuild our economy
Restore our international reputation.
Above all, make that vital start in getting our people back to work.
I’m glad to report that we’re making steady progress on each.
Ireland has been on a difficult economic journey in recent years, but we are now moving steadily in the right direction. The hard sacrifices that are being made by the Irish people are delivering results. Government borrowing is now falling steadily, and we have beaten all the deficit targets we have set for ourselves.
Ireland's competitiveness vis-a-vis our trading partners has improved by over 20% since 2009. Consequently, exports are now well in excess of pre-crisis levels, rising by 5.1 % last year alone. In that year too, Ireland's economy returned to growth with GDP increasing by 1.4 per cent. It shows that the export-oriented Irish economy can grow even during a period of unprecedented budget consolidation. That strong export performance means that for the first time in a decade our balance of payments with the rest of the world moved into surplus. It’s expected to remain in surplus over the coming years. This is most encouraging and means that as a whole, Ireland is paying its way.
From an unprecedented recession in 2008-10, the overall economy has returned to modest growth. This economic progress has restored international confidence in Ireland. Yields on Irish Government bonds have fallen from over 14% last year to below 5% today. Deposits are returning to our banks.
But we are not complacent about the challenges ahead.
Europe
This will depend on developments across Europe and in the broader international economy. Especially the economy of the US and our trading partners. For Ireland to be successful we need to see economic stability and a return to growth and job creation in Europe, most particularly in the euro zone.
Since the crisis broke, European leaders have taken a number of critical decisions. We’ve put in place the mechanisms needed to support countries that get into difficulties. We have adopted tougher, tighter rules to ensure budgetary discipline.
In June, we took several crucial decisions which we are now in the process of implementing. We adopted a ‘Compact for Growth and Jobs’. In effect, this aims at completing the Single Market project that has created so many economic opportunities for Irish and European businesses. Taking this work forward will be a priority area for us when we assume the Presidency of the EU’s Council of Ministers in the first half of next year.
For Ireland, trade is a crucial engine of growth. Developing relations with the Union’s key strategic partners, including the United States, is another key priority. Transatlantic trade and investment – in both directions – constitutes the largest economic relationship in the world. The link is vital to both the European and American economies, especially given the crucial importance to both of us of growth and recovery.
I strongly believe that agreement on a comprehensive trade agreement between the United States and the European Union would take this relationship to a new level. I will be aiming to make as much progress as possible towards this goal in the period ahead.
In June too, the European leaders reached vital agreement on the need to break the toxic link between bank debt and sovereign debt, and to enable the permanent ESM fund to directly recapitalise European banks. I have long considered this an essential step and therefore that the clear and unequivocal decisions made by the Heads of Government in June aimed at stabilising the Eurozone are implemented in full as soon as possible. I’m resolute that this cannot happen quickly enough.
Ireland’s bank-related debt has been a critical factor in our financial difficulties. Our European colleagues recognised this in June when they committed to working with us, examining how best to make our position more sustainable. We’re currently in intensive discussions with our European partners and with the ‘Troika’ of the IMF, the European Central Bank and the European Commission - to ensure that that commitment sees results.
Right now, the euro area needs a success story. And Ireland can be that success story.
This crisis has also highlighted shortcomings in the original designs for Economic and Monetary Union. The President of the European Council, Herman Van Rompuy, is currently investigating how this can be addressed. He will bring forward a report with recommended actions by the end of this year.
Job Creation
Just as in the United States, unemployment is a problem in Ireland and in the EU. Therefore, protecting and creating jobs is a key priority for my Government. We must get our people back to work. We must open the doors to the kind of the business opportunities that work in the people's interest.
The Government's Action Plan for Jobs contains a range of measures to improve the business environment, to boost and keep jobs, and to bring about sustainable economic growth. The Action Plan is the first installment in an ambitious multi-year process which aims to create 100,000 net new jobs by 2016.
Yes – as in other countries - unemployment remains too high. But there are signs of stabilisation in the jobs market. Yes – it’s a long and difficult road to full employment - but we are equal to the challenge.
Ireland's Competitiveness
Restoring competitiveness is a key element of the Jobs Action Plan. We’re seeing already very significant improvements. The IMD World Competitiveness rankings show that Ireland is now back in the world's top 20 for competitiveness.
We are number 1 in the world for the availability of skilled labour.
We are 2nd in the world for productivity and efficiency.
We are rated no 1 for our
flexibility and adaptability when faced with new challenges;
We top the rankings on globalisation and reform.
We have made particular progress in the area of cost competitiveness: Irish unit labour costs are expected to fall by a cumulative 16.5% over the period 2009 to 2013. In contrast, unit labour costs in the euro area as a whole are forecast to increase by close to 6.7% over the same period.
Also, Irish inflation rates today are amongst the lowest in the euro area and are forecast to remain below the euro area average for the period 2012 to 2013, further improving our relative competitiveness.
Foreign Direct Investment
That improved competitiveness is why we continue to perform so well in attracting Foreign Direct Investment. As President Clinton said in New York last year - there is no better time to invest in Ireland.
We have retained our traditional strengths which has brought so many leading international companies to Ireland.
We have:
8 of the top 10 US ICT companies,
8 of the top 10 global pharmaceutical companies,
15 of the top 20 medical device companies,
More than 50% of the world's leading financial services firms,
And leading born-on-the-internet companies such as Google, Linkedin, Twitter, Facebook and Yahoo.
I can give you a long list of why Ireland is so attractive to multinationals. But I prefer the 4 Ts - talent, track record, tax base, and technology. However, above all it’s our people with their expertise, their "can do" attitude and hard work that make the difference.
To date, over 1,000 multinational corporations have chosen Ireland as their strategic European base. Last year was a record one for inward investment into Ireland. We’re on track yet again to break all records in 2012. A very significant proportion of our FDI comes from the United States.
US-Ireland relationship
A recent report on the Irish-US Economic Relationship showed that Ireland was the third-most preferred European destination for US foreign direct investment outflows last year, accounting for 30.5 billion US dollars.
The ties that bind Ireland and the United States together continue to become stronger and we must remember that trade between our two countries is a two way street. The activities of Irish firms in the US remains substantial, only 11 other countries in the world have a higher investment stake in the US than Ireland. Ireland's FDI stock in the US was worth around 25 billion US Dollars in 2011. Irish affiliates employ approximately 120,000 US workers, with a corresponding figure of around 107,000 Irish workers employed by US affiliates.
Our 12½% corporation tax rate remains - and will continue to remain - at the heart of our strategy to attract foreign direct investment. But we are taking a range of measures aimed at further developing and deepening the impact of FDI. We’ve made it attractive for senior executives to relocate to Ireland. Our Enterprise Agencies, Enterprise Ireland and the IDA are also working together to maximise the benefits and learning for smaller Irish firms from our cadre of leading multinational companies, Irish SMEs from FDI.
This kind of collaboration is key. That way we can achieve my stated ambition - to make Ireland the best small country in the world in which to do business by 2016, the centenary year of the Easter Rising.
Diaspora
We know that our Diaspora is every bit as committed as we are to ensuring a full and early recovery. In fact our Diaspora of 70 million people is a great resource for us as we make this journey. We’ve set up a Register of Advocates from our Global Irish Network. We’re supporting the Connect Ireland initiative which leverages our Diaspora for the purposes of job creation. This application of referral marketing to job creation is one of the first schemes of its kind globally. I expect the benefits for Ireland to be significant.
I’m aware that so many of you here, and so many watching at home, can and do - and proudly - trace your ancestry back to Ireland. Just a few weeks ago I was proud to welcome over 35,000 supporters of Navy and Notre Dame for the Emerald Isle Classic. This might have been the biggest-ever mass movement of US citizens overseas for a sporting event. What a game.
Gathering
And next year I’m inviting you to come see for yourselves. Because today, I’m inviting you ‘home’ to Ireland. To a year-long celebration of the very best of who we are… culture, music, dance, literature, food, sport.
We hope to reach out to the millions of people who claim ancestral links with Ireland, as well as those who well just love us for what we have done for and given to the world. I’m asking you today to spread the word - there will never be a better time to visit Ireland.
Concluding Remarks
City Club, you’re looking good at 100.
And I hope 100 years from now another Taoiseach will be standing here and someone else - your descendants, men and women you will never know - will be listening. And the Taoiseach, she will say…. you know a century ago Ireland had it tough. But there were men and women prepared to make the necessary decisions... And to make them, paraphrasing President Kennedy, not because they were easy but because they were hard. And we suffered yes. But like the generations of Irish before us, we came through. Together…. Together…. we recovered. Because everything we did… we did first… last… in the interest of the people.
Go raibh mile maith agaibh.