Introduction
Ladies and Gentlemen I am delighted to be here with you this morning.
The Funds Industry Association Conference was one of the first events I attended last year after I became Taoiseach.
This reflects the value that both myself and my Government place on the financial services sector as a major player in Ireland’s economic recovery.
Since we last met much has been achieved in the funds industry, the financial services sector and of course Ireland’s economic situation.
Economy
As we meet here this morning we are approaching yet another critical time for the country on our path to economic recovery.
The coming weeks will see Government advance preparations for Budget 2013 and work to secure agreement internationally on aspects of Ireland's bank debt.
Both are essential to bring the national finances back under control as we continue to reduce the deficit and rebuild confidence in the wider economy.
There is some way to go on our joint path of economic recovery but there have been some significant developments over the past year that we should take encouragement from.
Ireland’s economy returned to growth last year with GDP increasing by 1.4%. This comes after three successive years of contraction.
This recovery is being driven by exports which are now well in excess of pre-crisis levels.
Last year was also the best year in a decade for net FDI jobs created by the IDA.
Last week the annual Global Competitiveness Report compiled by the World Economic Forum showed Ireland moving up the ranks once again.
Last year Forbes magazine listed Ireland as the top EU country for doing business.
Prices and costs in Ireland have fallen significantly with further improvements expected.
This shows that our focus on making Ireland the best small country in the world to do business is beginning to yield positive results.
Our strong export performance also means that our balance of payments with the rest of the world moved into surplus in 2010 for the first time in a decade and is expected to remain in surplus over the coming years.
This is encouraging and demonstrates progress on rebuilding a sustainable export led economy.
National Finances
What will be more challenging in the coming years will be the continued effort to bring the national deficit back under 3% of GDP by 2015 in conjunction with the continued restructuring of the domestic banking sector.
To date we have meet all of our commitments under the EU/IMF supported programme.
The deficit limit for this year is 8.6% of GDP and the latest data shows we are on track to achieve this target.
Work on reducing the burden of the banking debt has continued over the summer months in advance of Eurogroup meetings in the Autumn.
This week Minister Noonan will meet his counterparts in Germany, France and Italy to further Ireland’s position.
The renegotiation of aspects of our Troika Programme over the past year in addition to the economic progress we have made has restored international confidence in Ireland and is reflected in the sizeable improvements in our bond yields in the past year.
Over the summer, the State has successfully re-entered the bond market, the treasury bill market and the sovereign annuity market.
However, we recognise that significant progress needs to be made on the jobs front before we can truly say we are on the road to recovery.
The growth of the funds industry in Ireland is vital in this regard. Continuing job and investment growth in this sector will be part of our mission to get Ireland working again.
To advance this agenda the effective and timely implementation of our Strategy for the International Financial Services Industry is progressing well.
Funds Industry
The Irish funds industry has gone from strength to strength and passed a number of significant milestones in the past year.
Most notably the Irish funds industry has surpassed €2 trillion in total assets under administration.
Credit for this must go to all of you here today who work so tirelessly to provide the services needed by global asset managers as well as promoting Ireland as a centre of excellence for the location and servicing of funds.
Since I was last here, we have also achieved €1 trillion in Irish domiciled investment funds for the first time - which by any standards is a huge success.
Today Ireland is responsible for administering more than 40% of the world’s alternative investments.
Last year I outlined some of the initiatives Government was taking with the funds industry to attract additional business in Islamic and Green Finance.
I am delighted to say that significant progress has been made. The Irish Funds Industry recently attracted its first fund promoter from Malaysia further strengthening its position as the leading regulated centre for Islamic Finance outside the Middle East.
In green finance there is some $16 billion in assets serviced, domiciled or managed from Dublin and this cluster of expertise is growing rapidly.
Irish Funds Industry Association
The IFIA has played a significant part in this success.
It has not stood still and continues to develop industry services and offerings to the world’s asset managers.
At last year’s conference we announced that, in partnership with the IDA, the Irish funds industry was to open three representative offices in the US and one in London.
In so doing we demonstrated this Government’s commitment to the Irish funds industry and that relationship has since grown to include offices throughout Asia in Singapore and Tokyo.
Since my last visit with you the IFIA has also opened representative offices in Hong Kong in partnership with the Hong Kong Irish Chamber of Commerce.
This year, 2012, is a very special one as the International Financial Services Centre celebrates 25 years. And, this reminds us that it is important to look to the future to ensure the continued growth of international financial services and funds for the next quarter of a century.
We remain committed to ensuring that the legal, regulatory and tax environment in which the funds industry operates is supportive of Ireland’s hard earned reputation as a centre of excellence in both the traditional and alternative segments.
Last year’s budget and its accompanying Finance Bill contained a number of measures to ensure that Ireland remains competitive for the Funds Industry.
Regulation
The Government is acutely aware that regulatory developments in Europe pose both opportunities and challenges for the industry.
The Government will continue to work closely with all stakeholders to ensure the best representation for Ireland in European negotiations.
We are working diligently to enable timely and effective transposition and implementation of the various pieces of EU legislation, both fulfilling our responsibilities and seeking opportunities in the process.
We are also committed to doing all we can to make sure that Ireland continues to be a great location for doing business.
However, above all it is our people with their expertise, “can do” attitude and hard work that make the difference.
Conclusion
We are making progress on the road to recovery. We are in a better place since last year and I expect us to be in an even better place next year.
I’d like to thank you for all your hard work.
Through your experience and ability to adapt, the funds industry has flourished and experienced growth year on year for 22 of its 23 years.
And, with our funds industry benefitting from 23 years of excellence, innovation and reach, it is easy to see why Ireland is the managers’ choice.
I am sure the next two days will provide a valuable platform to discuss many aspects of this vital industry.
I wish you every success.