In an effort to attract further investment from the southern regions, Invest NI, Northern Ireland’s business growth agency, has inaugurated a new facility in Dublin. The institution is leveraging Northern Ireland’s special post-Brexit status which allows it double access to both the United Kingdom and European Union markets for goods. This follows a recent launch of similar establishments in London and Brussels.
Steve Harper, Invest NI’s international and skill sector executive director, mentioned that the Dublin hub would provide a substantial area for hosting seminars and displays. It will also serve as a vital meeting ground for Northern Ireland companies and associates keen to investigate export options in the South.
Sitting in Dublin’s docklands, City Quay, the novel site will also act as the base for Tourism NI’s southern office.
Harper pointed out that Northern Ireland’s second largest source of Foreign Direct Investment (FDI) came from the Republic, only outdone by America, and surpassing inward investment from Britain.
Since 2002, around 180 Irish firms, such as Kingspan, Kerry and O’Neill’s Sportswear, have poured over €800 million into Northern Ireland, cementing in excess of 4,500 employment roles.
Harper recognised the political delicacies concerning Northern Ireland’s trading stance with the European Union, stating they will unreservedly capitalise on any associated benefits.
On the discussion of differing corporate tax rates between the Republic and Northern Ireland, Harper stated that corporation tax has a negligible impact on their current pursuits of attracting cost centres from the financial and insurance industries, which are focused on servicing other markets.
However, he acknowledged that this tax factor could be a consideration if they decided to target profit centres. While the UK’s standard corporate tax rate stands at 25%, the Republic operates at 12.5% (or 15% for major multinationals). Harper recognised that a reduction in corporation tax could be beneficial by providing an extra appeal.
Northern Ireland’s Minister for Economy, Conor Murphy, visited Dublin to officially open these new premises on Wednesday.
“Businesses increasingly have a presence in both halves of the island,” commented Mr Murphy, referring to the fact that cross-border trade has seen a staggering 125% growth since 2018, totalling over €10 billion in 2023.
There’s a growing trend of supply chains and business conglomerates adopting an all-Ireland model. Moreover, cross-border tourism has seen a notable uptick in recent years, with records for 2023 revealing an extraordinary number of visitors from the South,” he pointed out.
Speaking about this, Invest NI’s CEO, Kieran Donoghue remarked, “Northern Ireland’s dual market access compliments its position perfectly, making our hub an excellent platform to showcase the North’s exclusive trading status within GB and EU markets.”