Ladies and gentlemen,
Thank you for the invitation to be with you here today.
I understand there are over 1,000 delegates representing 400 companies from over 40 countries attending this week.
The scale of this event truly reflects the growing size and importance of the industry to Ireland.
Ireland’s Recovery & Outlook
You are visiting Ireland at an important time.
A little over a month ago this country successfully exited from a three year EU/IMF Programme of Support.
It has been a very difficult time for the country. But due to the commitment and determination of the Irish people we have turned Ireland around.
Three years ago we faced a shrinking economy, skyrocketing unemployment, and an exploding deficit.
Today the economy is growing again, we have seen over 58,000 new jobs created, and we have hit our deficit reduction targets without fail to put the country back on a solid footing.
As the first country inside the Euro area to successfully emerge from such an EU/IMF, it is a significant vote of international confidence in Ireland and an important milestone.
Two weeks ago we returned to the debt markets and raised €3.75 billion through the sale of a new 10 year Bond at a yield of 3.54%. Last Friday Moody’s became the last ratings agency to upgrade Ireland to investment status and changed our outlook to positive.
Ireland’s is now a highly competitive and stable location for investment and jobs.
As a Government we plan to safeguard this progress by ensuring we put the country back on self financing basis. We will reduce the deficit to under 3% of GDP by 2015 and plan to eliminate it altogether by 2018.
This is a major part of our plan to make Ireland the best small country in the world for business. Last year we won a record 164 international investments, up 13% on 2012, with 78 new companies invested in Ireland for the first time. This is a resounding affirmation of the confidence the global community has in Ireland and testimony to the talents Ireland has to offer.
We remain a location of choice to establish, grow, and invest in a business and our competitiveness and productivity has improved in recent years. Our competitive and transparent corporation tax of 12.5% will remain the cornerstone of our enterprise policy.
We have seen relative improvement in our labour costs, reductions in property costs, increased use of innovation and technology, and downward pressure on prices across professional and business services.
As a result we had the honour of Forbes magazine last month labelling Ireland the best small country in the world for business. We won’t stop our reform plan until everyone recognises the progress we have made and the advantages of investing in Ireland.
The Air Finance Industry
We want to particularly prove this to the air finance industry.
The growth of the industry has been on the most significant success stories in the development of Ireland’s global international financial services sector.
It now employs some 1,000 industry specialists directly and another 1,400 professionals indirectly in an ecosystem that has developed over time with the support of the Irish Government.
Incidentally, I have recently returned from a week long Trade Mission to the Gulf States, where I met with the Chief Executives of all the major airlines in the region, some of whom are represented here today.
In addition to hearing their views on the global aviation sector, it also provided an excellent opportunity for some of the Irish companies on the delegation, to have direct discussions with their senior executives on service provision.
Next month our Minister for Jobs, Enterprise and Innovation, Richard Bruton, will take part in the first ever three way trade mission with the UK and Northern Ireland Executive to the Singapore Airshow to explore further opportunities in the aviation sector.
The success of this industry in Ireland, has, as many of you know, been directly linked to the contribution and innovation shown by Guinness Peat Aviation, founded in 1975 and based in Shannon.
It helped to pioneer the model under which airlines agreed to lease aircraft for years or even months, allowing them to adapt quickly to changing market conditions.
I believe there are two key factors that explain why Ireland has developed as a leading global centre for the aviation industry: The availability of talent and consistent Government support.
Government support
The Irish government has consistently sought to ensure that Ireland not only maintains its position in the global airfinance sector, but also continues to avail of new opportunities as the sector evolves.
The result of these efforts is that over half of the aircraft in the global fleet - worth over $80bn – are funded from Ireland.
We have ensured that a balanced tax and regulatory regime kept pace with industry developments.
We continue to introduce amendments to cater for new forms of financing, such as Enhanced Equipment Trust Certificates and Sharia compliant products.
We also prioritise the development of our already extensive double tax treaty network. Ireland has signed 69 comprehensive double tax treaties to date.
Most recently, when I was in the Gulf this month, I spoke with the Qatari authorities about opportunities following the coming into force of our Double Taxation Agreement on 1st January this year. The overall quality of our treaties in the aviation sector significantly reduces costs for lessors compared with other hubs.
The Finance Act 2013 also included a measure providing that new construction on certain aviation-specific facilities, such as hangers and teardown pads used in the maintenance, repair, overhaul or dismantling of commercial aircraft, enjoy an accelerated tax depreciation deduction over 7 years.
Ireland is currently host to many maintenance, repair and operations providers, and is used as a location for some of the most challenging assignments in the maintenance and overhaul of global aircraft fleet. This is an industry that we want to develop further following on from the advances made in Shannon.
I also want to welcome and acknowledge the recent announcement by the Irish Stock Exchange to launch a dedicated exchange for aviation finance which will enhance our status as a global centre for the industry.
Availability of Talent
The second key attraction that Ireland offers is a large talent pool of people with a unique level of specialist expertise and experience in airfinance.
With nine of the top ten global aircraft lessors located in Ireland, there is a size to this industry that is simply unrivalled elsewhere in the world.
The universities and institutes of technology in particular have played a key role in supporting the sector by offering relevant courses in areas as diverse as aeronautical engineering and Islamic finance.
It should also be noted that the industry has produced a number of leading entrepreneurs, and not only in the airfinance sector.
The combination of ability, skill, dynamism and entrepreneurial flair provided the talent to transition this industry in Ireland from start up to a global market leader.
But we are not complacent - the government is aware of the specific challenges that the sector in Ireland faces. We will continue to engage with the industry, as we have in the past and maintain an open and constructive dialogue. We are listening to the issues and concerns and addressing them in a balanced manner.
Conclusion
Before I finish I’d like to acknowledge a hugely significant transaction in this sector which was announced in December with the acquisition by AerCap of ILFC, the second largest aircraft lessor in the world with an office also here in Dublin.
AerCap have publicly announced their intention to centralise the combined aircraft fleet of the two companies in Ireland and to grow the assets owned here.
This is a transformational transaction for AerCap but is also a huge boost to the aircraft leasing sector in Ireland. I want to congratulate AerCap and ILFC on this deal and wish them every future success. I understand the CEO of AerCap, Aengus Kelly, will be speaking to you shortly.
As you participate in this conference in the coming days I think you will recognise the huge progress achieved by Ireland in recent years.
Yes – we want your business. But your business will also benefit from locating in a country that is serious about its future and has a people that are driven by excellence and perseverance.
Our track record in the airfinance sector and in attracting high quality foreign direct investment speaks for itself.
So let me conclude by wishing you a very
successful event and a very enjoyable time in Dublin.
Thank you.