On the dashboard of economic indicators, employment provides the clearest picture of where we are as a State. Ireland has undergone an incredible transformation, not just in the number of people working but also in the types of jobs they hold. Over the past 30 years, employment has grown from one million to just under three million people, with many of these jobs being highly skilled.
Data from Ibec’s recently launched general election manifesto highlights this impact, noting that many counties have seen upwards of 80 per cent employment growth over the past three decades, with towns such as Tuam and Letterkenny experiencing over 110 per cent growth, much higher than the national average and ahead of international norms.
Right now, political parties are refining their manifestos in anticipation of the election being called. They will be the blueprints that will shape Ireland’s economic and social model for years to come.
The backdrop to the 2012 and 2016 elections was one of economic turmoil, followed by a difficult recovery. The 2020 election occurred during a period of rapid growth, which exceeded most predictions and proved beneficial during the economic upheaval of the pandemic.
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So, what is the economic backdrop to a 2024 or 2025 general election? The bottom line is that we are in an extremely advantageous position heading into this election, envied by many other countries – including continued buoyancy in our tax revenue.
This election provides a generational opportunity to make strategic investments that have long been the Achilles’ heel of growth, such as the prolonged nature of infrastructure delivery, inadequate public services, and housing issues. We also need to take note of the increasingly competitive global landscape, where investment is harder to secure and trade is more complex. This means that future governments may not have the same level of resources available.
The challenges we face – climate change, technological disruption, global competition – require us to be more proactive than ever.
The next government must seize this moment to implement the most significant investment programme in the history of the State, focusing on infrastructure, education and, critically, an energy strategy that balances the need for decarbonisation with the demands of a competitive economy. The Government’s announcement about establishing the Better Regulation Initiative Unit to examine and assess the impact and challenge of regulation posed on business in Ireland, a recommendation taken directly from Ibec’s Budget 2025 submission, is welcome.
The long-awaited report by former Italian prime minister Mario Draghi indicates the European Union is facing a significant competitiveness crisis and trailing behind global counterparts. This came as no surprise to Ibec. Many of our members, both European and Irish businesses, have been raising competitiveness as a point of concern.
Indeed, addressing concerns around competitiveness is a dominant theme within our general election manifesto. The call for the European Union to reduce the cost of energy and to do more to enhance Europe’s levels of interconnection and energy security, by delivering large-scale investments in renewables more efficiently, will find strong support in the business community. Likewise, the central message to reduce the regulatory burden placed upon business is critical to enhancing Europe’s economic competitiveness and innovation.
Much of our ability to grow depends on infrastructure delivery. The time consumed by certain infrastructure projects simply isn’t good enough. We urgently need to significantly reduce the length of time it takes to bring projects from start to finish. Value and budget are important, but delivery is more critical.
Having met Taoiseach Simon Harris and British prime minister Keir Starmer, I believe it is clear that resetting our political and, in turn, our business relationship with the UK can provide a significant pivot to address many of the challenges in a whole-of-island context, maximising the greater economies of scale for renewable energy and decarbonisation projects specifically.
We must also recognise the shifting dynamics of the world of work. The rise of digitisation and artificial intelligence is transforming industries and society, creating new opportunities for high-skilled, high-paying jobs. This shift also presents challenges, particularly in ensuring that all workers have the skills needed to thrive in a digital economy and that we are prepared for the changes this wave of advancement will bring.
Unlocking the National Training Fund to accelerate this is something Ibec and businesses have long advocated. We welcome the Taoiseach’s announcement that the Government will unlock the fund before the end of the year. This will help us be more agile in a world of increasing complexity and change.
Over the lifetime of this Government, businesses have contributed more than €100 billion to the exchequer through corporate tax, with even more flowing in through wages and income tax. Without these significant contributions, the Government would be forced to borrow extensively to maintain public services and infrastructure. No government will be able to deliver on its ambitions without these contributions.
When voters head to the polls, they must demand sensible economic policies that protect our global competitiveness while addressing the pressing issues of our time. By doing so, we can ensure continued growth without being stunted by deficiencies. If we miss this opportunity, we may not get another one as promising.
Danny McCoy is Ibec chief executive
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