Drawing from the economic indicators’ dashboard, the employment sector presents the most vivid depiction of where we stand as a country. Within the last 30 years, Ireland has witnessed a remarkable metamorphosis, evident not just in the surge of the working population but also in the diversity of their job roles. Our employment pool has tripled from one to nearly three million, with a significant portion of these jobs being high-skilled.
It is worth noting from the recent general election manifesto released by Ibec that multiple counties have observed over 80 per cent employment expansion over the past three decades. Towns like Tuam and Letterkenny have reported growth rates surpassing 110 per cent, a statistic that surpasses both the national and international average.
Presently, political factions are honing their manifestos, set against the likelihood of imminent elections. These documents will be instrumental in driving the socio-economic trajectory of Ireland in the future. The 2012 and 2016 elections happened amid financial strife and a challenging recovery, while the 2020 election coincided with unexpectedly rapid growth that cushioned the economic shockwaves of the pandemic.
In terms of a potential election in 2024 or 2025, it’s clear that we’re in an unusually favourable position, admired by many other countries, including consistent vitality in our tax income. This forthcoming election marks a pivotal opportunity to commit to strategic investments that will address our long-standing weaknesses such as poor infrastructure, subpar public services, and pressing housing issues. There are also changes in the global investment and trade climate that necessitate close attention, considering future governments may have a reduced resource pool.
Confronting issues like climate change, tech-based disruption, and global competitiveness requires a more proactive stance than ever. The succeeding government needs to capitalise on this opportunity to roll out an unprecedented investment programme in state history. The focus should be on areas like infrastructure, education, and crucially, an energy blueprint that harmonises decarbonisation goals with the requirements of a competitive economy. The Government’s decision to form the Better Regulation Initiative Unit, based on a suggestion from Ibec’s Budget 2025 agenda, to review and gauge the impact and challenges of regulations on Irish businesses is an encouraging development.
The report from ex-Italian premier Mario Draghi that has long been anticipated, highlights an alarming competitiveness issue in the European Union which is lagging behind its international counterparts. Ibec was not shocked by this revelation. Numerous members, including both European and Irish firms, have pointed to competitiveness as an area of worry.
Tackling the emerging competitiveness issues is a primary focus in our manifesto for the general election. The business sector will firmly support the demand for reducing energy costs and further enhancement of European interconnection and energy security, through efficient renewable investments on a large scale. Similarly, the key suggestion of lessening the regulatory pressure on businesses is vital for improving Europe’s economic competitiveness and promoting innovation.
A considerable part of our growth potential is infrastructure dependent. The time taken by certain infrastructure assignments is simply unacceptable. An urgent cutback on project duration from inception to completion is needed. Although budgeting and value are crucial, the execution is even more important.
Following meetings with Taoiseach Simon Harris and Britain’s Premier Keir Starmer, I strongly feel resetting our political and consequently our commercial ties with the UK can provide a significant fulcrum to tackle many obstacles in a unified-island context, particularly enhancing the scale economies for renewable energy and projects aimed at decarbonisation.
Understanding the evolving nature of the working world is equally important. The rapidly increasing digitalisation and artificial intelligence are revolutionising industries and our society, providing chances for secure, highly-paid employment. But with this shift also comes the challenge of ensuring our workforce is equipped with necessary digital skills and preparation for the changes brought about by progress.
The long-standing business and Ibec advocacy for freeing the National Training Fund to speed up this skill transfer is noted and appreciated. We also appreciate Taoiseach’s assurance that the government will release the fund before this year concludes, which would allow us to swiftly adapt to an increasingly complex and changing world.
Throughout their tenure, businesses have given over €100 billion through corporate tax, with wage and income tax yielding even more, to the government treasury. Absence of these substantial contributions would necessitate the government to extensively rely on loans to sustain public amenities and facilities. The fulfilment of any government’s aspirations is impossible without these contributions.
When constituents make their way to the voting booths, it’s crucial they place significance on prudent economic strategies that safeguard our international competitiveness, simultaneously tackling today’s urgent matters. Pursuing this route guarantees sustained progress, uncompromised by any shortcomings. Should we neglect this golden chance, we might not chance upon another equally encouraging one in the future. Danny McCoy serves as the chief executive of Ibec.