Introduction
Ladies and Gentlemen, Members of the Council
· It is a pleasure to be here this evening as the Council’s guest of honour and to address an audience who will influence investment and job creation in this country over the coming year.
· Since its foundation in 1963, the Ireland-US Council has served Ireland extraordinarily well, deepening and cementing ties between Ireland and the US and providing a hugely important business and cultural network that has underpinned our relations ever since.
· That next year marks the Organisation’s 50th anniversary stands as a true testament to its work.
EU SUMMIT
· A lot has changed since the foundation of the Council and these are certainly changing and interesting times.
· I welcome the outcome of the European Summit early this morning and the agreement which represents a major shift in European policy and a major step forward for Ireland.
· We are in Government just over a year and we have worked tirelessly to improve the programme for Ireland; to make it fairer and to lessen the burden for the Irish people. We have made significant advances to date, restored the minimum wage, secured interest rate reductions worth €10 billion and deferred the promissory note payment. But the announcement early this morning is an acknowledgement of the need to break the vicious circle between the sovereign and the banks.
· Every opportunity has been taken by this Government to highlight the need for Europe to recognize the case of Ireland and specifically in relation to our debt burden relating to our banks. We have always said that renegotiating the agreement bequeathed to us by our predecessor Government would be a process not an event. Last night was another stage on that journey.
· The Irish people deserve considerable credit too. They were told during the referendum campaign that there were quick wins and easy options available to them. After four years of fiscal correction it was an attractive message. Last night’s announcement is the ultimate vindication of the decision that considered engagement not fanciful rhetoric would see our interests served.
· Following the successful passing of the Fiscal Treaty by the Irish people the Taoiseach wrote to other Heads of Government setting out Ireland’s case and the need to break the link between banks and sovereign. I am pleased that the text of last night's EU Summit agreement reflects the proposals set out and highlighted by myself and Minister Noonan at our meetings with the Troika.
· The EU leaders have laid the groundwork for a strong and stable Europe and euro into the future. Acknowledging the need for a European growth strategy with stimulus and investment package in this stable future.
· The challenge now is for the timely implementation of all the actions agreed. Minister Noonan will advance Ireland’s position at the next EUROGROUP meeting and the Tánaiste will ensure that our Embassies throughout the EU will continue their work ensuring that Ireland’s position is clearly set out throughout the detailed discussions of this agreement.
· Last night's statement singles out Ireland for specific recognition in terms of the strong implementation of our programme. This is a tribute to the Irish people who have had to endure significant reductions in order to put our economy on a sustainable long term growth path.
Ireland-US Trade and Investment
· The Council’s history traces a period of transformative economic and social change in Ireland, from a relatively poor, somewhat insular and agriculture-focused economy to a wealthy, outward-looking technology driven one.
· Of course, we are in a very difficult position at the moment – and the challenges facing our nation should not be underestimated – but this organisation gives reason for hope for the future.
· The track record of the Council serves to remind us how far we have come, and it provides reassurance about our capacity to recover lost ground and achieve even more in the years ahead.
· The companies represented here this evening are proof that long-term planning, vision and a determination to work hard and to embrace changes deliver results and prosperity.
· When I think of Irish-US trade relations, it strikes me that as with many long-established and successful relationships one can sometimes take things for granted.
· It is therefore worth reminding ourselves that US companies are the single largest source of Foreign Direct Investment (FDI) in Ireland, and are likely to remain so.
· Last year alone, of the many investments won by IDA Ireland, three out of every four came from US companies.
· As of 2010, US FDI in Ireland was more than US FDI for the BRICS (Brazil, Russia, India and China) combined.
· To put the presence of US multinationals here further into perspective, let me remind you of the following:
Ø US companies account for almost 75% of the total inward employment in Ireland.
Ø Of this employment, over 500 US corporations provide direct employment for over 100,000 people. This of course does not take into account the indirect employment that their presence generates.
Ø Our government has continuously highlighted the importance of an export-led recovery. As such, the significance of the €93bn of exports which US companies produce cannot be overstated.
Ø The US is Ireland’s single largest export market, with the total value of exports standing at €21bn in 2011, according to Enterprise Ireland.
· Increasingly, Irish companies are returning the favour.
· Irish companies employ over 82,000 Americans across all 50 US States in high-growth areas such as medical and pharmaceutical products, electronics, business software and services.
· Areas such as ICT, gaming and digital media, and telecoms are expected to grow at double digit rates in the coming year.
· Ireland is now the 10th biggest exporter to the US and the 13th largest investor. That is quite remarkable for such a small economy, but it reflects the strength of our ties which is embodied by the Ireland-US Council.
Economic Recovery
· As for our current economic position, James Larkin once said, “We are beaten, we will make no bones about it; but we are not too badly beaten still to fight.”
· Under this Government, our economic fight back has begun.
· Despite our present difficulties, we have retained our underlying strengths that will serve us well once the global economy finds a firmer footing for its long awaited return to growth.
· In the meantime, we will continue to focus on getting our house in order, positioning ourselves higher in the global competitiveness stakes; becoming a world leading economy for enterprise and innovation.
· The Government is absolutely committed to putting in place the structural reforms to help achieve this, to improve national competitiveness and to make doing business here easier.
· We still have some way to go, and some more difficult choices to make. But of course, nothing is done without effort. What I am certain of is that we will recover and we will prosper again.
· And at the heart of that recovery will be the multinational companies now embedded in our economy – many of whom are represented here this evening - and our renewed, vibrant and competitive indigenous companies.
THE GOVERNMENT’S RESPONSE
· During the 1990s, when we first showed what could be done, the private and public sector worked brilliantly together to create an economy and business environment that supported product development, business creation and jobs growth.
· This relationship is the key to national economic recovery.
· Our role as Government is to make public services work as best they can for citizens and business, to invest in key infrastructure and to provide political stability and maintain focus on what is important – economic growth, job creation and social well being.
· We are doing this by bringing stability to the public finances, fixing the banking sector, investing in effective enterprise and business supports through our State agencies and removing unnecessary administrative burdens on business.
Public Finances
· The public finances are on a corrective path. Many of the hard decisions have already been taken.
· The budgetary correction has been somewhat frontloaded, and these efforts are beginning to show results.
· We have returned to growth – albeit this is fragile because of what is going on in the World generally – and our public finances have started to stabilise.
· There are difficult choices ahead but the Government will make these decisions, at all times guided by fairness and the need to protect growth and society.
Red Tape
· The Government is also determined to reduce red tape in a meaningful way and lighten the administrative burden on businesses.
· Of course we need a comprehensive set of regulatory, standards and licensing regimes that
protect consumers, workers, the environment and businesses themselves.
· But we also need to be sure that we get the balance right, that any old, outdated bureaucratic requirements are consigned to history.
· To that end, the Department of Jobs, Enterprise and Innovation is taking the lead and setting a standard among Government departments.
· It has already reduced administrative burdens in the areas of Company Law, Employment Law and Health & Safety Law by more than 23%.
· The estimated potential savings to the economy from this alone is in the order of €200 million per annum. To make that saving real, businesses need to adopt these newer, more simplified approaches.
CHALLENGES REMAIN
· Of course challenges remain for Ireland.
· Our commitment to the European Union was reinforced through the passing of the Stability Treaty and offers a reassurance that access to funds are available should we need them.
· Our aim of course is to return to bond markets and regain our economic sovereignty through the implementation of the Programme.
· Its implementation has been impressive and internationally acknowledged as such. No country wants to lose its sovereignty and no new Government wants to inherit an assistance programme, but we have taken it on the chin and used the opportunity to do things that will serve us well into the future.
· What we must ensure as a nation is that the day we entered the Programme marks a historical low point, never to be revisited.
· That means never forgetting the mistakes that led us there.
· It also means we have to remain steadfast as a people in the face of further difficult choices over the next few years.
· We must stay focused on supporting growth and on targeting Exchequer spending on areas that will help stimulate that growth.
· At this end, I and my colleagues are taking every opportunity to push the growth agenda and explore every potential avenue to stimulate the domestic economy and create jobs.
Now is the time to invest
· We live in momentous times. There is great uncertainty about what the immediate future holds in economic terms in the US and in Europe, and this makes it very difficult for companies seeking to invest for the future.
· Amidst this uncertainty, however, is absolute clarity that Ireland remains an attractive location for business and is ripe for investment now.
· This is an economy on the way up.
· Obviously as a small open economy whose recovery is being driven by exports, Ireland will be affected by the current global economic turmoil.
· However, the composition of our exports and our competitiveness improvements will help to offset the potential negative impact of this slowdown.
· Indeed, I would emphasise that nearly all forecasters expect that Ireland will record positive GDP growth again in 2012.
· Looking towards the medium term, the external environment is expected to strengthen from 2013 onwards, as is our export growth.
· As this stronger export performance starts to feed through to investment and employment, consumer confidence is expected to return and the savings rate should start to begin to unwind.
· So, what we expect to see is economic activity beginning to gradually firm and broaden out, from being solely externally-driven to including some initially modest contribution from domestic demand.
· It is also worth noting that last year the IDA reported a record number of investments were made in Ireland and that the pipeline for further investment is strong. So I think many of you here this evening already see the opportunities.
· And despite what we have gone through, as I have already said, the underlying strengths of this economy remain. Indeed they have improved.
· The Irish workforce remains flexible, productive and highly educated. It has also undergone a significant cost readjustment.
· We remain unreservedly committed to our low corporate tax rate and to our membership of the European Union, which has been underscored by the recent Referendum result.
· And perhaps most significant of all, is that despite the strains and real hardship placed upon the Irish people as a result of an economic crash not of their making, there is an unspoken sense of national solidarity, a broad unity of purpose to put things back together.
· When you see what is happening elsewhere, such a level of political and social stability should be highly valued by investors.
Conclusion
To conclude, my message for you today is clear
- we are getting our public finances back in order;
- we are taking every opportunity to stimulate the domestic economy, restore confidence and create jobs;
- we are committed to ensuring the Ireland increases its competitiveness;
- we will continue to work with each of you, through our agencies, to ensure that Ireland remains “best in class” for FDI.
This Government is committed to ensuring that Ireland remains the best place in the World for you to do business and I look forward to that business relationship being as productive in the next 50 years as it was in the last 50 years with the assistance of the Ireland -US Council.
Thank you.