Irish economy to grow by 5pc in 2006 Posted on Tuesday, November 29, 2005
Tuesday, November 29 12:00:43
(BizWorld)
Ireland's GDP is expected to grow at a steady rate of 5pc over the next two years, according to an OECD report published today.
The OECD said in its latest global economic outlook that the expansion will be driven by continued income growth and sustained government spending.
The removal of the Groceries Order was welcomed by the OECD who said that intense competition was needed to counter short-term inflationary pressures and to boost long-term growth.
The OECD report warns that, "with strong activity exerting inflationary pressures, core inflation is projected to creep up over the projection period."
In Europe as a whole, the OECD forecast a 2.9pc growth in 2006 and 2007 following a 2.7pc growth this year.
The report also said that, following a 3.6pc growth this year, the US economy would power ahead at 3.5pc next year and 3.3pc in 2007.
With the ECB expected to raise interest rates later this week, the OECD report recommended that eurozone interest rates should stay static until September or October 2006, as inflation in the 12-nation currency area was well under control.
AIB upbeat on economy after 2007 -
Tuesday, August 29 12:28:24
(BizWorld)
The AIB Global Treasury today said that the economic outlook beyond 2007 is not as gloomy as has been predicted.
However, it did warn that domestically induced wage inflation poses a potential risk to Ireland's longer-term economic prospects. It also cautioned that a slow down in productivity growth has become a real concern.
In the AIB's Economic Update for August, chief economist John Beggs forecasts GDP growth of 5.5pc this year with a similar rate of growth anticipated for 2007.
"We agree that the rate of economic growth will probably slow after 2007 due to weaker expansion of domestic demand, particularly consumer spending. However, export growth is very difficult to predict," he said.
"Our export forecasts are, of course, very dependent on the performance of key multinational sectors within the economy. Furthermore, it is our view that the official statistics consistently underestimate the growth in the volume of exports of goods and services from Ireland. Consequently, we believe that exports could make a larger contribution to overall GDP growth than our conservative forecasts made below."
He also predicts that inflation will run at 3.6pc next year compared to the anticipated 4pc for this year.
With regards construction, the report forecasts that new house completions will total around 90,000 in 2006 and 85,000 in 2007.
However, turning to the domestic economy, Mr Beggs warned that the strength of housing activity has masked a very weak performance by the non-residential construction sector in recent years.
"Overall, new housing accounts for half of construction activity. In our forecasts, we assume that housing completions fall by 5,000 in each year between 2008-2010, declining from 85,000 to 70,000. However, we look for non-residential construction activity to show robust growth in the second half of this decade, helped by a rise in public capital spending in particular. Hence, there may be just a slight fall in overall construction output in the period 2008-2010."
Meanwhile, spending on machinery and equipment should continue to rise in a growing economy, boosting total investment, the report said.
"The latest survey evidence suggests that SSIA holders will invest most of their savings, limiting the boost to consumer spending in 2006-07. Nevertheless, growth in consumer spending will still fall sharply in 2008, possibly to 3.5pc from some 7.5pc in 2007, as the impact of maturing SSIAs abates, and as employment growth slows and the savings ratio stabilises."
"Thereafter, we see consumer spending growth picking up to around 4.0-4.5pc in 2009 and 2010".
The report also predicts a marked deceleration in growth in domestic spending to about 2.8pc in 2008, before it picks up to around 3.5pc by 2010. This compares with the growth of 8pc recorded in domestic spending in 2005.
"We expect that by 2008, net exports will start making a positive contribution to growth again. Thus, we look for GDP to rise by about 4.5pc in 2008, with growth steady at that level until 2010, close to the economy's trend rate. These are obviously very tentative forecasts."
"What they suggest is that, provided the external environment remains favourable, the Irish economy should be able to withstand the slowdown expected in 2008 from a decline in housing output and the ending of the SSIA stimulus to spending."
Experian to move its HQ to Dublin -
Monday, July 31 15:34:49
(BizWorld)
Experian, the British-based global credit checking firm, is to relocate its head office to Dublin in October.
A company spokesman today said that the move was mainly strategic and will take the form of a holding company in Jersey with ownership of the Dublin headquarters.
"While Experian is based in Britain, we consider the firm to be a global operation. Currently just 14pc of our entire business is in the UK and we believe that the move to Dublin represents the best strategic platform for further global growth," he said.
He added that Ireland's 12.5pc corporate tax rate - compared to the UK's 15.5pc - was a consideration but 'not the deciding factor' in the decision.
Experian's parent company, GUS, plans to list its Experian unit on the London Stock Exchange at the same time as the move to Dublin and will demerge it from its Argos and Homebase retail chains.
Liam Brady, a director with Experian's Irish division could not say how many new jobs would be created here from the move, "but we do anticipate a recruitment drive in the near future," he said.
Experian employs 44 people at its Dublin office.
Ireland second most expensive EU country - Friday, July 21 14:41:32
(BizWorld)
Ireland has been ranked the second most expensive country in the European Union in a new price survey.
Irish prices are about 23pc above the EU average in the four areas covered by the research.
The survey found that Ireland was the dearest country in the EU for communications services and the second most expensive for recreation and culture.
Denmark topped the survey where high taxes are blamed for keeping prices 32pc above the EU average.
Premier buys Campbell Irish business - Premier buys Campbell Irish business -courtesy WWW.RTE.IE
British group Premier Foods has agreed to buy the UK and Irish operations of the Campbell Soup Company for £460m.
The Irish brands involved include Erin soups, McDonnells sauces and Oxo stock cubes. The company operates the Erin plant in Thurles, Co Tipperary and also has an office in Dublin. Campbell bought Erin from Greencore in 2002.
The Campbell UK and Ireland operation made pre-tax profits of £20.5m on sales of £263m in the year to the end of July last year.
US firm to create 100 new jobs in Cork - Monday, June 12 14:25:13(BizWorld)
US networking solutions company, Netgear, today confirmed it is to set up its international headquarters in Cork, creating up to 100 new jobs.
The investment is supported by IDA Ireland.
Netgear, which designs, develops and markets networking products for small business and home users worldwide, was set up ten years ago in California. Its designs are manufactured in Asia and then sold both through traditional retailers and online.
Company chairman Patrick Lo described Cork as "an ideal location" due to its infrastructure, multi-lingual capability, highly skilled workforce and 'ease of doing' business.
The company said that recruitment for positions in finance, technical and IT support, HR , operations and product marketing has already begun.
IDA helps create 12,600 jobs in 2005 -
Thursday, May 25 15:53:32
(BizWorld)
IDA assisted companies created over 12,600 jobs last year with more than E760 million invested by foreign companies, the State development company's annual report showed today.
The IDA said that 71 new business projects were negotiated during the year with new and existing clients with 46 of these locating outside Dublin.
It added that over half of the new jobs created were for people with third-level or higher qualifications in a wide range of disciplines.
The 12,623 new jobs created were offset by job losses of 9,211 giving a net gain of 3,412, the highest gain since 2000.
A breakdown of the employment figures show that the worst performance came from the Border counties and the North East with net losses of 4.8pc and 4.2pc respectively.
The best are for jobs created by IDA assisted companies came from the Midlands and West regions with 10.4pc and 8.3pc gains respectively.
Some 50 research and development projects were supported involving a total investment in excess of E275 million, a record in number and value and an 85pc increase over 2004.
"Continued competitiveness and flexibility in responding to changes in both local and international economic conditions is essential. The pace of development makes further investment in education and R&D critical. Rapid improvement in physical infrastructure is also a pressing need, especially to support regional development," said IDA chairman John Dunne.
IDA Ireland today also unveiled its new international marketing campaign 'The Irish Mind'. The new international campaign will build on the "Knowledge is in our nature" theme that has been used by IDA in recent years.
Irish are third least taxed in EU -
Wednesday, May 17 16:43:06
(BizWorld)
The Irish are the third least taxed citizens in the EU's 25 states, behind only Lithuania and Latvia, a report from the EU Commission said today.
Ireland has a total taxes-to-GDP ratio of 30.2pc where the average is 37.6pc.
The composition of tax revenue in Ireland (indirect 44pc, direct 41pc, social security contributions 15pc) differs considerably from the typical structure for the EU-25 as a whole (38pc, 32pc, 30pc).
'The greater significance of indirect taxes in the total tax take counterbalances the generally light overall tax burden in Ireland such that the proportions of GDP absorbed are comparable,' the Commission states in its report.
'The EU, taken as the whole, remains one of the world's highest taxed areas,' the report said. Tax ratios ranged from 28pc in Lithuania and 29pc in Latvia, both fast-growing new member states, to more than 50pc in Sweden and 49pc in Denmark.
Ireland -
Thursday, May 11 16:55:51
(BizWorld)
Ireland now has the eleventh most competitive economy in the world, according to the latest figures.
The latest figures from Swiss-based international business school IMD show that Ireland has moved up one place from tenth and is the top-ranked large economy in Europe.
The IMD Competitiveness Yearbook is recognised globally by governments and business as one of the best comparisons of countries and their economic performance.
Speaking after the release of the International Institute for Management Development's 2006 rankings, Minister for Enterprise, Trade and Employment, Mr. Micheal Martin, welcomed Ireland's rise.
"Increasing competitiveness across all sectors of the economy is the key to sustaining economic growth, generating more employment opportunities and providing a profitable base from which companies can compete and win more business in world markets," he said.
"Achieving recognition for our international competitiveness is not just a once a year event. Building and maintaining competitive capacity is a long-term and constant challenge. In the context of the current Partnership talks there is concern about the pace of growth in labour costs and productivity. These are big issues in assessing competitiveness. Wage moderation and higher productivity will be critical in giving our enterprise sector the ability to confidently compete in global markets".
The US remained at number one in the league, however Stephane Garelli, Director of the World Competitiveness Project and Professor at IMD Business School and University of Lausanne, says that in 2006, competitiveness is a more compact race than ever before.
Although the US is still No. 1 in IMD's World Competitiveness Yearbook, other economies, especially Hong Kong and Singapore are closing the gap.
The UK came in 21st place in the rankings.
Economy to grow by 6pc in 2006 - BOI - Economy to grow by 6pc in 2006 - BOI [BIZWORLD]
Monday, January 23 11:39:44
The Irish economy is experiencing a consumer boom that is set to fuel economic growth of 6pc in 2006, according to the Bank of Ireland Global Markets economic outlook for 2006 published today.
The outlook also shows that this spending is not being fuelled by debt, but by increases in household income, which grew by 10pc last year.
The Bank predicts that 40pc of SSIAs will mature in 2006, a third of which will be spent adding over E2 billion to consumer spending this year.
click here...
This will come on top of another strong year of income growth with employment set to rise by 4pc and earnings by 4.5pc, the net effect being an overall rise in consumer demand. This demand will be underpinned by increases in government, construction and business spending.
The outlook predicts that output is unlikely to keep pace with this spending as the domestic economy does not produce the types of goods likely to see the largest increases in demand - cars, foreign holidays, consumer durables.
Foreign demand is also likely to lag that of Ireland, limiting the growth of Irish exports to 6pc. This will lag import growth, the net result being GDP growth of 6pc from 4.7pc in 2005.
According to Dr. Dan McLaughlin, Chief Economist with Bank of Ireland Group, the real threat to the Irish economy is not rising oil price, a fall in the US Dollar or a slowing down of the US economy but the absence of a sovereign bank as this breaks the link between interest rates and activity.
"To date this has benefited the Irish economy, as Irish interest rates are probably too low for domestic conditions while appropriate for the sluggish German, Italian and French economies," he said.
"There may come a time, however, when the reverse is true - the Irish economy slows, pushing up unemployment, but interest rates stay high because Germany and France are booming. In other words the real risk to the Irish economy is a country specific shock which hits hard here but leaves the larger European economies unscathed," concluded Dr. McLaughlin.
Irish growth to remain steady at 4.9pc - Tuesday, December 14 09:29:47
(BizWorld)
The rate of growth in the Irish economy is set to exceed that of the global economy in 2005, according to the Economist Intelligence Unit.
The unit was presenting its annual forecast in which it said world growth will slow from 4.1pc this year to 3.2pc in 2005. China will again be the fastest growing major economy at a rate of 8.1pc, while growth in the US will slow to 3.1pc.
see further information http://www.businessworld.ie/livenews.htm?a=1066710
North's private sector shows upturn -
Monday, January 16 12:13:22
(BizWorld)
Private sector business conditions towards the end of 2005 in the North showed a marked improvement, according to the latest Ulster Bank Purchasing Managers' Imdex (PMI) report.
The rates of growth of both output and new orders accelerated to the highest levels seen during the year, with firms noting successful promotions and strengthening export demand.
As a result, backlogs of work increased, suggesting that firms would remain busy in the coming months. Staffing levels were raised on average for the second month running.
click here...
Meanwhile, inflationary pressure on firms' costs remained substantial in December, despite easing further from September's high.
In contrast, firms lowered their own prices as part of efforts to stimulate higher sales.
Pat McArdle, Chief Economist, Ulster Bank, said the report pointed to hope of a resurgence in the secor.
"The New Year's message from the PMI is one of hope and prosperity as both output and new orders ended the year on a high note. They were driven by stronger export demand, particularly from the Republic of Ireland, while, at home, there was evidence of more promotional activity, mainly in the form of cuts in prices. With activity in both the UK and the Eurozone also set to accelerate, and another reduction in BoE interest rates still on the cards, the outlook is more promising than it has been for some time," he said.
Halifax finally completes rebrand - Halifax finally completes rebrand
Monday, November 27 11:59:23
(BizWorld)
Halifax has completed the rebrand of the Bank of Scotland (Ireland) retail business, it said today.
All 23 retail branches are now Halifax branches, all product literature and retail customer communications are also Halifax, it said.
While operationally the change in brand has been ongoing since it was announced in August, the physical change of the 23 branches has taken just one week, Halifax said.
Starting today Halifax will begin marketing its new brand with an extensive advertising campaign celebrating the arrival of Halifax to the Irish main street.
The campaign includes national and regional press, radio, outdoor and online and is part of a significant marketing spend promoting the Halifax brand over the next 14 months of around E12m.
Inflation drops to 2.1pc in June -
Inflation drops to 2.1pc in June Thursday, July 14 11:24:55
(BizWorld)
The annual rate of inflation fell to 2.1pc in June, compared to 2.4 in May, according to the Central Statistics Office.
FD- Cork Review - Siemens creates 30 new Cork jobs - Siemens creates 30 new Cork jobs
Monday, May 16 15:18:41
(BizWorld)
Siemens new high-end System Management Centre in Cork is to create 30 new jobs, the Minister for Enterprise, Michael Martin said today.
The Centre will provide a remote server and network management support service to customers on an out-sourcing basis, initially in the UK and in time to those in Europe.
It will create 30 new high value jobs over four years for highly skilled technical people and network specialists and will be located in the company's existing building at Penrose Quay. This is separate to the recent announcement that Siemens has decided to outsource its IT services to Siemens Business Services.
Sage
"This high value outsourcing services operation is an indication of Ireland's ongoing attractiveness as a location for such investments, despite competition from other locations worldwide for these activities. It continues the success of IDA's strategy of working with the existing Irish operations of overseas companies to assist them in winning further higher skilled activities," the Minister said.
Monday, May 16 15:18:41
(BizWorld)
Siemens new high-end System Management Centre in Cork is to create 30 new jobs, the Minister for Enterprise, Michael Martin said today.
The Centre will provide a remote server and network management support service to customers on an out-sourcing basis, initially in the UK and in time to those in Europe.
It will create 30 new high value jobs over four years for highly skilled technical people and network specialists and will be located in the company's existing building at Penrose Quay. This is separate to the recent announcement that Siemens has decided to outsource its IT services to Siemens Business Services.
Sage
"This high value outsourcing services operation is an indication of Ireland's ongoing attractiveness as a location for such investments, despite competition from other locations worldwide for these activities. It continues the success of IDA's strategy of working with the existing Irish operations of overseas companies to assist them in winning further higher skilled activities," the Minister said.
500 new financial jobs for Navan, Wexford - report (BizWorld) - 500 new jobs for Navan, Wexford - report
Tuesday, May 17 10:53:08
(BizWorld)
Around 500 jobs are to be created by a financial services firm in Wexford and Navan towns, according to RTE news.
US financial services group, PFPC International, is to create 500 jobs in the towns of Navan and Wexford.
Further details of the jobs, which will be supported by IDA Ireland, will be formally announced by the Minister for Enterprise, Micheal Martin, later this afternoon, RTE News says.
Economy to grow 5.7pc this year - ESRI - (Bizworld) - The economy is expected to grow by 5.7pc this year and by a similar figures next year, according to the ESRI. (http://www.businessworld.ie/rankednews2.htm?s=index.html;s2=rankednews2.htm;r=3;a=1135750)
However, the continuing good health of the Irish economcy will not translate into the level of improvement in living standards experienced during the Celtic Tiger boom.
Living standards - as measured by wealth per capita - will rise by 4.5pc this year and 5.8pc next year. This is some way off the 8pc average growth enjoyed between 1998 and 2000.
Irish wages 134% of European average: SFA survey - Irish wages 134% of European average: SFA survey
09/03/2005 - 11:54:43 [Source IOL 9th March 2005]
Wages in Ireland are now 134% of the European average, according to the Small Firms Association's Annual Pay Survey.
Wage increases across the economy grew by 5.4% last year, though in small companies the average was 8%, the SFA study found. Across Europe, wages grew by 2.2% last year.
255 new jobs for Dublin in 4 investments - 255 new jobs for Dublin in 4 investments
Thursday, February 03 12:13:34
(BizWorld)
Dublin is to get 255 new high quality jobs from four new IDA-backed investments, it was announced today.
Yahoo! Dublin HQ to create 400 jobs - Tuesday, February 15 15:37:14
(BizWorld)
Internet portal Yahoo! is to set up its European headquarters in Dublin and will create 400 new jobs, it was announced today.
Bizworld link for more information
www.businessworld.ie/livenews.htm?a=1108993
Earnings in financial sector rise 7pc - Wednesday, January 12 11:32:19
(BizWorld)
Average weekly earnings in the banking, insurance and building societies rose by 7pc in the year to September 2004, new figures show.
SEE FULL STORY IN BIZWORLD
http://www.businessworld.ie/livenews.htm?a=1083334
ISME expects small firm jobs boom in '05 - Wednesday, December 29 11:20:17
(BizWorld)
Small firms association ISME has declared itself "bullish" about 2005, after a survey of its members showed their sentiment improving strongly.
Its final quarterly business trends survey for the current year shows that 30 pc of its member companies are more confident about prospects than they were 12 months ago.
Further details on thsi article are available on
http://www.businessworld.ie/livenews.htm?a=1075778
Irish GNP up by 4.9pc in first 9 months - Irish GNP up by 4.9pc in first 9 months
Wednesday, December 22 11:51:09
(BizWorld)
Irish Gross National Product (GNP) was 4.9pc higher in the first three quarters of 2004 compared with the first three quarters of 2003, the latest figures from the Central Statistics Office reveal.
The corresponding growth rate in GDP for the same period was 5.6pc.
In the third quarter of 2004, GDP increased by 5.8pc in volume terms compared with the same quarter of last year while the corresponding increase in GNP was 4.2pc. The profits of foreign owned enterprises are excluded from GNP.
CRH surge takes ISEQ to new highs - CRH surge takes ISEQ to new highs
Wednesday, January 04 18:05:41
(BizWorld)
CRH led Irish shares higher today after a statement from it this morning saying profits for the year would top 1.25bn euro.
The construction giant moved 20c higher on the Dublin market to 2550.
New accountant watchdog begins work -
Tuesday, April 10 07:20:38
(BizWorld)
Today sees the first day's work of the new Chartered Accountants Regulatory Board (CARB), the regulator of the 16,000 members of the Institute of Chartered Accountants in Ireland.
The board also launched its website, www.carb.ie.
The establishment of CARB comes into effect following a decision by ICAI to commence the bye-law provisions from yesterday.
Reasons to do business in Ireland - Ireland has a small highly globalised economy, with a large exporting sector, and a significant number of multinational corporations. While the global downturn impacted significantly on Ireland, the outlook for the economy is improving.
See the full Article from the IDA
www.idaireland.com/invest-in-ireland/why-invest/
2011 Coming to a close - As 2011 draws to a close, many businesses are finalising their headcount plans and budgets for 2012. Despite the current Euro dramas, Financial Directions is finding many companies are still actively hiring the ‘right skills sets’. From a client perspective there are many great candidates available with reasonable remuneration expectations. Please contact us if you would like to discuss possible hires for next years and ascertain a level of renumeration for the roles you may require assistance with.
+353 1 676 7222
fs@directions.ie
Metro North to add 37,000 new jobs - Monday, May 26 10:33:22(BizWorld)
A new strategy plan for North County Dublin shows how the Metro North region from Santry to Swords will double the area's level of economic activity, increase employment with the creation of 37,000 new jobs and increase its population to 128,000 over the next 20 years.
An Economic Development Strategy for the Metro North Economic Corridor was launched this morning by Fingal County Council and Indecon Economic Consultants.
The strategy says that Metro North is the key to 'sustainable continued expansion' and economic growth of the Airport City region and to Dublin as a whole.
Key recommendations of the strategy include facilitating development which would bring the total employment in the area to 66,700, attracting high tech manufacturing and services employment, the location of a new university campus and a hospital in the corridor and ensuring that all new developments meet best international practice in environmental standards.
100 jobs for Cork at new Pfizer plant - 100 jobs for Cork at new Pfizer plant:(BizWorld)
One hundred new jobs are to be provided in Cork at a new drugs plant planned by the drugs company Pfizer.
The proposed new plant, which will involve an investment of 190m euro, is to be announced later today.
The plant at Ringaskiddy will produce a new type of medicines called biologics, used in the treatment of chronic pain, cancer, diabetes and auto-immune diseases.
A total of 500 jobs will be provided during the construction phase of the project.
The announcement of the new venture is to be made later today by enterprise minister Micheal Martin.
GlaxoSmithKline (GSK) to create 50 new jobs in Dungarvan - GlaxoSmithKline (GSK) to create 50 new jobs in Dungarvan - new €30 million manufacturing expansion
18/04/2008
GlaxoSmithKline Dungarvan Ltd
Minister for Social and Family Affairs Martin Cullen TD today (Thursday 17th April 2008) announced that GlaxoSmithKline (GSK), one of the largest pharmaceutical companies in the world, is to invest a further €30 million in the expansion of its existing over-the-counter (OTC) pharmaceutical manufacturing facility in Dungarvan, Co. Waterford. The investment, supported by IDA Ireland, will create 50 new high quality jobs over three years in the production of a product to aid smoking cessation, for supply to all markets outside of North America. The jobs will be in areas of production, quality, technical and engineering.
Minister Cullen was on a visit to the GSK site to perform the official opening of a recently completed €23 million expansion at the site with Sir Christopher Gent, Chairman, GSK. Announced in January 2007 by GSK, the investment establishes a new granulation and compression facility and provides increased production capacity for the introduction of new products in GSK’s internationally established Panadol range.
Minister Cullen said “Implementation of these two investments, in such a short time-span, is a major vote of confidence in the Dungarvan facility and in the capabilities of the town of Dungarvan to support such strategic developments. The investments underpin the existing operation and its workforce, and will create excellent additional employment opportunities. They will also significantly enhance the facility’s role in GSK’s global business. I congratulate the management and workforce at the Dungarvan site for their commitment and successes which have resulted in this excellent outcome.”
GSK employs 1,450 people in Ireland and first established operations here in 1975. In Dungarvan it has two manufacturing operations and is the largest employer in the town with almost 700 staff; in Cork it has a third manufacturing operation, where it develops and produces a range of bulk pharmaceuticals, together with R&D and European Trading operations; and in Dublin there are Sales and Marketing functions.
This latest investment in Dungarvan is at the GlaxoSmithKline Dungarvan Limited site, which manufactures over-the-counter (OTC) pharmaceuticals in tablet form for global markets, for brands such as Panadol, Panadol Extra, Coldrex and Solpadeine. It was established in 1987. The second Dungarvan operation - GlaxoSmithKline Oral Care – was an existing facility acquired by GSK in 2001 and is engaged in the global manufacture of denture care products, principally under the Polident, Poligrip and Corega brand names.
Michael Tyler, Vice President and Site Director, GSK Dungarvan said “This is a significant investment for the Dungarvan community and recognises the confidence and trust GSK has in our employees.”
The Celtic tiger can come roaring back: FT -Marc Colman - Published FT: January 28 2008 20:00 | Last updated: January 28 2008 20:00
Like a bicycle in a traffic jam, Ireland’s economy has defied every obstacle the world economy has thrown at it since the mid-1980s. In every year since 1993, gross domestic product grew by 4 per cent or more.
But to many observers the lucky country now seems headed for a fall. With a quarter of its economy dependant on its property market, things look grim. But are they? In the short-term, the answer is yes. From just under 5 per cent last year, Ireland’s economy will grow by little more than 2 per cent next year. A three-year-old housing bubble is bursting, a process likely to take another nine months. More worrying is the fact that Ireland’s construction industry employs around 270,000 or 13 per cent of Ireland’s labour force. It is a particularly unlucky 13: the European Union average construction employment share is 7 per cent. With Ireland’s property boom subsiding, around 100,000 people could, in theory, lose their jobs. That is 5 per cent of the Republic’s 2m-strong labour force.
But in one important respect Ireland is different, a difference that many if not all commentators on its recent growth have ignored. The country is vastly underpopulated. Like a vacuum in a high-pressure globalised economy, it has huge potential to continue drawing in labour and capital for decades to come. While that fact will not save it from a temporary correction of its overheated property market, it promises fantastic potential once that correction has run its course.
In 1841, the island of Ireland was home to more than 8m people, compared with 14m in England. England was well governed and was industrialising. Ireland’s economy was warped by colonial maladministration. As a result, in spite of being a net exporter of food, a savage famine wiped out one fifth of Ireland’s population. Long after it should have recovered from this, forced and unnecessary emigration caused Ireland to pour its essence into the world around it. Now one of the world’s most open economies, Ireland is finally able to support the population it lost in previous centuries. Globalisation is bringing Ireland on a journey back to the future.
For the first time since 1861, the Republic of Ireland’s population passed 4m in 2006, bringing the island’s population to 6m. Up a million in a generation, this surge in population growth has stimulated strong economic growth.
This demographic dividend needs to be complemented by something else; a density dividend. Poor transport, high utility costs and weak competition in many markets are raising the costs of doing business. More seriously, the failure to adequately urbanise, resulting in population sprawl, is holding back productivity in indigenous industry and significantly raising the cost of delivering public services. More immediately, the overhang of activity in Ireland’s property market will – just as it did in Germany in the 1990s – drag down growth in coming years.
It will also have to deal with a housing culture of high home ownership and variable rate mortgages that makes it more vulnerable to European Central Bank hawkishness.
But in the long if not the medium-term, the future looks bright for Ireland. With the Republic of Ireland’s population growing by 2.5 per cent a year, its population will reach 5m by 2019. Although certainly overvalued, Irish house prices will continue to benefit strongly from this demographic story, unlike the US.
In 1984, the US president, the prime minister of Canada, the finance minister of Australia, the prime minister of New Zealand and president of Israel were either born in Ireland, children of parents born in Ireland or grandchildren of grandparents born in Ireland. In that year, the Irish-born president of Israel Chaim Herzog found himself grappling with massive immigration flows that increased Israel’s population from 2m to 7m in just six decades. Coincidentally, his son is now minister for the Diaspora. Were Herzog senior alive today he would say that Ireland’s challenge is to reap a harvest of population growth in a way that secures a more efficient clustering of population and higher productivity growth.
Can it be done? As the man who foresaw the founding of the state of Israel, Theodor Herzl responded to a similar question a century before: “If you will it, it is no dream.”
The writer is author of a new book on the Irish economy The Best is Yet to Come (Blackhall Publishing). He is economics editor of Newstalk 106-108, Ireland’s new national radio station, and a former economist with the European Central Bank
Turnover at Google Ire more than doubles - Friday, December 14 16:19:51 (BizWorld)
Turnover at global search engine, Google's Irish operations more than doubled last year as it took on hundreds of extra staff and expanded operations.
Its latest accounts filed with the Companies Registration Office show that turnover increased to E1.66 billion in the year to the end of December 2006 from E1.68 billion in the previous year.
Google Ireland declared a pre-tax profit that rose to E17.36m from E5.7m during 2005.
The company paid no dividend to its US parent in the year and cost of sales almost doubled to E1.12 billion from E549m previously, the accounts show.
Administrative expenses more than doubled to E2.21 billion from E1.11 billion amid a major ramping-up of the group's sales activities across the Europe, Middle East and Africa (EMEA) and as it took on more than 500 new staff as part of its expansion.
Novell to create 40 jobs at Sandyford - (BizWorld)
Software company Novell is to create 40 new jobs at its operation in Sandyford, Dublin following an investment by the firm. The company said it is to centralise its EMEA (Europe, Middle East and Africa) TeleWeb operations in Ireland, with the support of IDA Ireland. Based at the company's Irish headquarters in Sandyford, Dublin, the TeleWeb team, will be responsible for handling Novell's EMEA renewal transactions by telephone and over the internet. The company, which currently employs 125 people in its Sandyford Shared Services Centre, chose Ireland over other locations due to the availability of suitably experienced staff and synergies with the existing operations. The announcement marks the second of three significant investments for Novell Ireland in 2007. Currently, the company is in the process of centralising its EMEA Finance function in the Sandyford Shared Service Centre and earlier this year it announced the creation of a 20 person License Management Team in Dublin.
Irish corp tax major investment draw - (BizWorld)
The low corporate tax base in Ireland continues to be a major attraction to foreign investors, according to the latest KPMG tax survey.
The survey said Ireland was favoured by 86pc of respondents because of its low 12.5pc corporate tax rate, which is well below the average EU rate of 24.2pc.
The survey also found that the lowest corporate taxes among the developed economies are in the EU.
Globally, the reduction in corporate tax rates from last year to this year has been slight, from 27.2pc to 26.8pc, according to the survey.
"This is much less than the year-on-year reductions of the 1980s and 1990s. However, some countries have made significant cuts, such as Turkey's reduction from 30pc to 20pc and Bulgaria's reduction by 5pc to 10pc," according to KPMG's Cork-based tax partner.
"Despite a scheduled drop in the UK rate to a proposed 28pc next year, the North's rate will remain obstinately high compared with the 12.5pc rate here in the South, where a competitive corporation tax remains a vital aspect of economic policy," he added.
Irish businesses also place a high value on continued infrastructural investment, a common sense attitude to regulation and an ongoing focus on education and training, said Mr Lynch.
McCreevy accounting proposal welcomed - (BizWorld)
The Institute of Chartered Accountants in Ireland (ICAI) has welcomed the publication by Internal Market Commissioner, Charlie McCreevy, of proposals to simplify accounting, auditing and corporate governance rules for smaller companies.
The Commission is seeking views on the proposals they published today by mid October 2007. ICAI will be responding formally at that stage.
Commenting ICAI director of representation and technical policy, Aidan Lambe, said, "ICAI welcomes the Commission examining these issues. The existing EU directives are in place now for almost two decades though it is fair to say that revisions have taken place in the meantime. The world of auditing and accounting has undergone considerable change in recent years, much of it driven by the needs and requirements of the listed markets. While this is understandable, it has given rise to questions as to whether the regimes pertaining to smaller entities are appropriate.
"In Ireland we have already responded to some of the issues raised. For example, the audit exemption threshold has been increased to the level pertaining in the rest of Europe from a very low base only four years ago. The new Companies Bill will be structured around the private company, the most common company type in Ireland, and should lead to some simplification for the SME sector. The EU review is part of a wider better regulation initiative not dissimilar to a process under review in this state in recent years. Indeed, standard setters like the International Accounting Standards Board are examining these issues also.
"Nonetheless, as so much of legislation in this area derives from Europe it is appropriate that a review takes place at that level. Commissioner McCreevy's announcement today is welcome in that context and will enable all those affected from business lobby groups to statutory regulators to have their say."
IBM to set up Dublin innovation centre - Wednesday, September 27 15:15:00
(BizWorld)
IBM is to set up a European Venture Capital Centre and an Innovation Centre at its Technology Campus in Mulhuddart, Co. Dublin.
The centre will be designed to become a focal point for Irish technology start-ups looking for venture capital backing, the Minister for Enterprise, Trade and Employment, Micheal Martin, said.
It will also facilitate access for Irish start-up companies to IBM strategy, technology sharing and mentoring and will act as an access point to IBM's in-house partnership programmes and research activities.
"The selection of Ireland as the location for IBM's European Venture Capital and Innovation Centre is a further endorsement of the excellent long standing relationship between IBM and Ireland. Just 2 months ago, I announced that IBM Corporation will invest E46 million in its Technology Campus in Mulhuddart to significantly grow its Dublin-based software development operations, establish a business incubation centre and enhance its supply chain capacity with support from IDA Ireland," the Minister said.
New ceo at Liberty Asset Management - BizWorld)
Friends First has said that it has appointed Gary Owens as chief executive of Liberty Asset Management and has acquired Allied Insurance Consultants.
The company said that it has acquired Allied Insurance Consultants (AIC) through its Liberty Asset Management business to create one of the largest independent financial services providers in Ireland with assets under management in excess of E400 million.
Liberty Asset Management, which now will employ more than 60 people, will see its pensions business treble in size following the acquisition of AIC and become a major force in the areas of pensions consulting and the provision of bespoke investment products
Mr. Owens was managing director of Hibernian General Insurance Company between 1999 and 2003, before joining Rainmaker Business Catalysts
Commenting on the acquisition, Adrian Hegarty, group ceo, Friends First said: "Liberty has proved to be an excellent acquisition by Friends First with a strong return on equity. We are delighted to complete this deal and believe that this will enable Liberty's business to grow exponentially over the next five years and become a major force in pension and investment consulting. This deal will create the scale needed to support the system investment required to attract Ireland's largest pension schemes."
Industry Profile - International Services -
Strong International Services Propensity in Ireland
Ireland is home to leading International Services companies offering business services on a pan-European/EMEA/Global basis. The sector includes a broad range of service sectors from professional consulting services, internet based business, telecommunications, travel and leisure, retail and distribution, media and entertainment, and business process outsourcing.
Companies operating in the internationally traded services sector have located and expanded here because of Ireland’s knowledgeable/innovative workforce, low risk environment, excellent infrastructure and favourable corporate tax rate.
* Ireland provides a low-risk, quick start-up, high-performance, knowledge economy for service companies.
* Services companies in Ireland have delivered better customer service, provided innovative business solutions and reduced costs enabling increased shareholder value.
* Leading companies such as Accenture, AOL, Bertelsmann, Bowne, eBay, ECC, EDS, Google, Hertz, Lufthansa, Marriott, Raddison Hotels and Overture.
Services Provided From Ireland
International Services companies are engaged in the provision of a highly diversified range of services:
* Shared Services Centres
* Call Centres
* Consulting
* Data Processing
* On-line Services
* Engineering Services
* Supply Chain Management
* Fulfilment Services
* Data Centre Hosting
* Reservation Services
* Sales & Marketing
* Software Development
* Software Localisation
* Technical Support Services
* Conferencing Services
* HR Services
* IP Management
* eProcurement
* eLearning
* Content Management
€9m investment to lead to Cork, Dublin jobs - An Irish technology and software development company is to invest €9 million in research and development.
The investment at Silicon and Software Systems (S3) will lead to the creation of 20 jobs at the company's offices in Cork and Dublin.
S3 creates software for set-top boxes, personal video recorders and high definition televisions.
AdvertisementIt is regarded as a global leader in its field.
The company was established more than 20 years ago and employs more than 300 people.
Most of its employees are based in Ireland, but over 100 are based abroad.
The company also has offices in Poland. Virtually all its output is exported.
Equifax to create 180 jobs for Wexford -
Thursday, March 22 14:28:06
(BizWorld)
A US global information solutions company is to create 180 new jobs in Wexford Town over the next five years.
Equifax is to expand its Irish operation at Whitemill Industrial Estate, Wexford- it already employs 140 people in the town.
Under the expansion 180 new permanent high quality positions will be added over the next five years.
The company has indicated that the people on temporary contract will have the opportunity to fill 45 of these new positions.
Minister for Employment, Micheal Martin, welcomed the investment, saying, "This is excellent news for the Equifax Wexford operation as it further consolidates the company's presence in the town, underpins the existing jobs and significantly increases total employment. The expansion, being part of Equifax's strategy for international growth, makes Wexford a further integrated and critical part of the Group's future well-being."
Rise in bullying in the workplace-survey -
Wednesday, March 21 11:20:25
(BizWorld)
A new survey out today shows that bullying in the workplace has increased in recent years.
Tony Killeen, Minister for Labour Affairs today published the results of two national surveys relating to workplace bullying.
The survey of those at work finds that, overall, 7.9pc reported that they had experienced bullying within the past 6 months. This compares with 7pc in the 2001 survey.
The highest rates of bullying are in education, public administration, health and social work.
In both surveys women are shown to be more at risk, 10.7pc in 2007 as against 5.8pc for men. The 2001 figures were 9.5pc and 5.3pc respectively.
Those with higher levels of educational attainment are more likely to report experiencing bullying in the workplace - 9.5pc who have completed third level as against 4.4pc of those who have completed the Junior Certificate.
The incidence rate in the public sector is higher than in the private sector.
Minister Killeen said that it was disappointing to see that the incidence figure has remained largely the same despite the increase in the level of awareness of the effects of bullying and its negative impact and the existence of Codes of Practice.
He said that the fact that only around half of all organisations report that they have heard of Codes of Practice and are aware of their requirements is a concern. He added that he will shortly be announcing a revised Code of Practice developed by the Health and Safety Authority.
IDA creates 6,000 new jobs in 2006 - Wednesday, March 07 17:31:16 (BizWorld)
The IDA and other state agencies created just under 6,000 new jobs last year, the Forfas Annual Employment Survey for the year shows.
Total permanent full-time employment in agency-assisted companies operating in the manufacturing or internationally traded services sectors amounted to 305,062 in 2006, an increase of 5,927 jobs on employment levels in 2005. This is the highest level of net job creation since 2000, the peak year for permanent full time employment among agency assisted companies, the survey showed.
Total full-time employment among Irish-owned companies amounted to 151,710 in 2006, an increase of 3,014 on the previous year. Employment among Irish-owned companies is 20,558 or 15.7 per cent higher than it was in 1997.
Among Foreign-owned companies, total full-time employment amounted to 153,352 in 2006, an increase of 2,913 on the previous year. Employment among foreign-owned companies has increased by 22,731 or 17.4 per cent since 1997.
The sectoral employment breakdown shows evidence of continuing structural change in Irish industry. Employment in manufacturing companies which had been falling since 2000 saw a slight increase of 284 to 215,952 in 2006 compared to the previous year. This is down 13 percent from its 2000 peak. Net job losses in 2006 were concentrated in traditional manufacturing sectors such as the food products, beverages and tobacco (-1,004), transport equipment (-671) and textiles (-408), reflecting on-going restructuring and competition from lower-cost locations.
Davy: Irish housing activity has peaked - Tuesday, February 27 13:11:14
(BizWorld)
Davy Stockbrokers has forecast that housing completions in Ireland will fall this year for the first time since 1993.
The broker said in a research report that it expects 82,000 housing completions in 2007, down 7pc from the record 88,200 completed in 2006.
Davy had previously forecast 87,000 new homes this year.
It also said that house prices, which have been flat for six months, are likely to stay unchanged month-on-month over during 2007.
The report claims that activity in the sector peaked in early autumn last year, with completions in the fourth quarter of 2006 falling 5pc - the biggest percentage drop in any quarter since Q2 1993.
With Ireland's housing stock having jumped by almost 40pc in the last ten years, Davy said that housing activity in Ireland has now finally peaked, although the market remains resilient.
However, the broker says that the market remains resilient and that the decline in activity will likely come in an orderly fashion and will not mirror the crash experienced in the US in 2006.
Further interest rate hikes and the challenge to investor sentiment, will provide two further tests to the market, the report says, meaning that conditions could deteriorate further.
While Davy is still predicting two further rate increases from the European Central Bank this year, it does warn that there could be as many as four.
Any drop in new house completions will have a major impact on the overall Irish economy.
Davy says that each drop of 10,000 completions will take 1pc off Ireland's Gross National Product (GNP).
"Our Irish macro forecast is sensitive to a decline in housing. Residential construction's share of GNP is much higher than in any other developed country," Davy says in the report.
US tax law changes threat to Irish jobs - (BizWorld)
Over 100,000 - some 5pc of all Irish jobs - could be at risk amid growing pressure in the US to end the practice of US multinationals funnelling cash through this country to avail of our low tax rate.
The new Democratic Party majority in the US Congress is pushing for an end to laws which make it possible for US firms to avoid paying the full 35pc corporate tax rate there and take advantage of Ireland's 12.5pc rate.
Ireland's tax rate has been a major pull for US companies to set up here but political pressure is mounting there to force multinationals to move more of the wealth they generate abroad back to the US.
The Congress Ways and Means Committee - a cross-party policy oversight group - will this week meet US Treasury Secretary Henry Paulson to discuss tax policy for US corporations operating overseas.
The new Democratic majority is considering rolling back Republican tax breaks to the likes of Microsoft, Dell, General Electric, Hewlett-Packard, Eli Lilly and other big multinational corporations with a committee composed mostly of Democrats saying that up to USD945 billion a year is lost to the US economy.
The activities of several so-called brass plate operations here has thrown Ireland's status as a tax haven into the political and media spotlight in the US.
These are major global companies that have a registered office in Ireland with sometimes just a handful of staff that nonetheless process billions of dollars through their books.
The latest example is SanDisk, a maker of flash memory storage cards and MP3 players headquartered in California that assigned 2005 revenues and profits to a holding company registered in Ireland.
Sandisk Manufacturing Ltd reported four employees and revenue of USD955 million - half of the group's total revenues - between the period when the company first opened up in Ireland, April 2005, and the end of 2005.
Other US technology companies with offices and operations in Ireland, such as Google and Microsoft , have also had their Irish financial reports come under political scrutiny in the US for, according to what one US Congressman called, 'generating revenues that appear out of proportion to the number of employees' here.
'Multinational corporations have got a lot at risk with the new majorities in the House and Senate,' Bill Archer, a Republican congressman from Texas told the US media over the weekend.
'It has a lot of seductive appeal to say that corporations that are operating overseas are exporting jobs, so therefore they should pay more in taxes on overseas income,' he added.
O'Brien calls for all-Ireland corp tax - Thursday, January 18 15:11:25
(BizWorld)
Millionaire businessman, Denis O'Brien, has added his voice to calls for a single corporate tax rate throughout Ireland.
Mr O'Brien was speaking at an SDLP function on the island economy in Belfast this morning.
He said it is not sustainable that one part of the island enjoys success driven by the private sector with the help of a low corporate tax rate, while the other is being held back because of interests in London and the south of England.
Currently corporation tax in the Republic is 12.5pc while in the UK the rate can reach 30pc on a tiered basis.
ECB keeps rates on hold at 3.5pc -
Thursday, January 11 13:02:04
(BizWorld)
The European Central Bank today held its key interest rate steady at 3.5pc.
With inflation in the euro zone set to rise above 2pc early this year and the 13 nations that use the currency still showing solid economic growth, the ECB's governing council will likely keep a keen eye on inflationary threats and could set the stage for an increase to 3.75pc in March.
Investors are eagerly awaiting the accompanying statement from ECB president Jean Claude Trichet to see if he gives any hints about the future direction of interest rates in the coming months.
Study ordered into mistakes by auditors -
Wednesday, January 03 14:27:34
(BizWorld)
A new study has been ordered into whether auditors should be protected legally from paying for mistakes.
Junior minister Michael Ahern has asked the Company Law Review Group to look into the current law.
At the moment Irish auditors are legally prohibited from limiting their own liability, but Mr Ahern said the huge growth of financial services here meant this should now be looked at.
Click Here!
He said they were also potentially liable on a personal basis for losses caused by persons - for example company directors - who do not have the resources to meet claims against them.
"Ireland's successful inward investment thrust and thriving financial services sectors has not, and cannot, survive without a competitive auditing services infrastructure", MrAhern said.
The minister said the study here was part of a wider debate on the issue across Europe.
He said that, with only four large global players in the audit market, a single case taken against even one of these could have the capacity to bring down that firm and thereby reduce choice in the audit market, in addition to the tremor which such a development would create in the audit profession and the wider corporate sector.
The announcement of the study has been welcomed by the Institute of Chartered Accountants in Ireland.
The ICAI said it was simply unfair that auditors put not just the assets of their firm on the line, but also their own and each individual partner's assets, each time they conducted an audit.
"We look forward to working with the CLRG on this issue and will publish a discussion paper to stimulate debate early in the New Year," it added.
Irish Exporters and Brexit . - Enterprise Ireland has produced a document on Irish Exporters and Brexit.
https://www.enterprise-ireland.com/en/Publications/Reports-Published-Strategies/Information-guide-for-Irish-exporters-to-the-UK.pdf
Irish accountants pessimistic on economy - Thursday, April 19 16:58:47
(BizWorld)
Ireland's accountants are twice as pessimistic about Ireland's business climate than they were six months ago, with many believing the economy will continue to disimprove into 2008, the latest CPA Business Barometer Survey shows.
Despite this, there is strong a strong endorsement from the profession for the current government with 33pc of respondents declaring they will vote for Fianna Fail and the PDs.
In the latest CPA Business Barometer published today just over 40pc of CPA members surveyed have seen a worsening in the business climate in Ireland over the past 12 months, compared with 20pc in the previous poll. Nearly half (49pc) believe that this disimprovement will continue into 2008.
A key concern to CPA members in relation to their business is the availability of skilled staff and the retention of current staff (39pc). Linked to this is the concern over rising wage costs to Irish businesses (35pc) and government regulation (30pc).
However, it is not all doom and gloom. A third (33pc) of CPA members surveyed believe that Ireland is a supportive place to do business now, a rise of 5pc compared to the last Business Barometer six months ago.
With regard to the forthcoming election Fianna Fail and PDs will receive the first preference vote from 33pc of those surveyed compared to 20pc for Fine Gael / Labour. However, this may change over the coming weeks as just over a third of respondents (36pc) yet to decide whom they will vote for in the forthcoming election.
Just over two thirds of CPA members surveyed (67pc) believe that the health service will be the main issue on which the 2007 general election will be fought. While two thirds (66pc) of accounting professionals support the proposals to lower personal taxation just 11pc believe it will be the main issue for the 2007 General Election.
"The lack of broadband availability remains a key concern for accounting professionals (53pc) and is one which needs urgent addressing - particularly outside the capital", says Padraig O Feinneadha, CPA President.
"The greatest challenges to business include such factors as the retention of staff, pay levels and government regulations. Rising interest rates, cost controls and inflation all featured as additional concerns."
Mr. O Feinneadha said that the political parties will address many of these issues over the coming weeks but cautioned on the need for informed debate to ensure continued stable growth of the economy.
