Labour shortages driven by housing and childcare ‘shortcomings’, Varadkar says

Labour shortages in the Irish economy are a reflection of “real shortcomings” in housing, education and childcare, Taoiseach Leo Varadkar has said.

“People simply won’t take up a job if they can’t find anywhere to live, a creche or a school place for their child,” Mr Varadkar told Dublin Chamber’s annual general meeting dinner on Thursday.

He said he wanted Dublin and Ireland to become one of the best places in the world to invest, start a business and to live.

This would require better infrastructure, housing, healthcare, early learning and childcare, all underpinned by co-ordinated planning.

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“These are not areas we have excelled in, but we have the capability to change that – and I believe we are an unfinished republic and an unfinished city until we get there,” Mr Varadkar said.

[ Dublin Chamber renews call for more housing in capital ]

[ Housing shortage now a ‘critical barrier’ to growth in Irish economy, Ibec warns ]

While Ireland was a very open economy, with huge exports, the Fine Gael leader noted it had relatively few indigenous exporters compared with peer countries such as Denmark, he said.

“We have some extraordinary Irish companies which are the best at what they do globally. Think of Ryanair, CRH, Glanbia and some of the other companies represented here this evening. There needs to be many more,” he said.

The Government’s White Paper on enterprise targets a 50 per cent increase in the number of large Irish exporting companies by 2030.

“So, we must broaden and deepen enterprise innovation capability, increasing the number of SMEs investing in research, development and innovation, linking our multinational and SME innovation base and public policy, and embedding a culture of continuous innovation,” Mr Varadkar said.

To this end, Ireland should borrow from what other countries are doing, he said, highlighting the success of Station F in Paris, now the world’s largest start-up campus.

Noting the Citizens’ Assembly recommendation for a directly elected mayor for Dublin, Mr Varadkar said he believed in local government and local autonomy “with decisions being made as close to people as possible”.

[ Will Dublin ever introduce an elected Lord Mayor? ]

“Some politicians and officials will resist it. I am determined to allow Dubliners to have their say,” he said.

The Taoiseach paid tribute to the city’s business community, which he said had shown “remarkable grit to get through” Brexit, Covid-19, the war in Ukraine and a sharp increase in the cost of doing business.

He said the Government would continue to support businesses, noting increases in excise on petrol and diesel were being deferred until the summer while VAT would remain at 9 per cent until the end of August.