Tech giant Intel has warned a series of senior Government figures about high energy costs and planning issues threatening Ireland’s competitiveness.
Semiconductor chip manufacturer Intel is a big employer in Ireland with almost 5,000 staff here and its lobbying on these issues is shown in Government records released under the Freedom of Information Act.
Maintaining Ireland’s attractiveness to multinational companies is a priority for the Coalition amid the economic uncertainty over last week’s trade deal with a 15 per cent tariff imposed on EU goods entering the US.
The records include a note of a May 1st meeting between Intel representatives and Minister for Enterprise Peter Burke.
The document says Intel referenced a recent call between chief executive Lip-Bu Tan and Taoiseach Micheál Martin “where the energy cost issue was discussed” and “noted the need for Ireland to take demonstrable actions on this issue”.
The Government side said forthcoming plans on competitiveness and large energy users “would chart a pathway forward on this crucial issue”.
Intel also raised issues with Ireland’s planning permission regime and how “unpredictability was a major business-planning obstacle”.
The company was told by Mr Burke and an official that legislative changes and investment in resourcing An Coimisiún Pleanála “should aid on that matter”.
Mr Tan’s call with the Taoiseach took place on April 14th.
Intel described it as an “introductory meeting” in a Register of Lobbying return, which set out how the company’s boss “reaffirmed Intel’s steadfast commitment to Ireland” during the conversation.
Separate records show Minister for Public Expenditure Jack Chambers took a tour of Intel’s Leixlip campus on the same day.
“Intel highlighted a number of areas that have proved challenging when justifying further investment,” a departmental note said, including the “complexity and length of the planning process” and the “comparatively high cost of electricity”.
Other records show an Intel representative wrote to then-minister for public expenditure Paschal Donohoe in December telling him Ireland’s “competitiveness is currently under threat, particularly in regard to the cost of electricity”.
Intel, which has lost market share in recent years, is undergoing a major restructuring internationally and there have been reports that it plans to cut up to 20 per cent of its global workforce.
Some 195 mandatory redundancies are expected at Intel’s Irish operations this autumn.
The Irish Times understands these expected job losses are linked to Intel’s overall restructuring internationally, and not the issues around energy costs and planning it raised with the Government.
An Intel statement welcomed the Government’s commitment to publishing a competitiveness action plan. “To sustain growth and remain competitive, it is crucial to prioritise competitiveness, streamline the planning process, and focus on developing long-term sustainable and competitive energy solutions,” it said.
“We appreciate the meaningful steps the Government has taken to address these challenges.”
A Department of Enterprise statement said work on the competitiveness action plan has been accelerated and it will be published in the coming weeks. “Ireland holds a strong global competitive position, currently ranked seventh worldwide,” it said, adding “we cannot afford complacency.”
It also said Silicon Island, the Government’s semiconductor strategy “is a clear signal of Government support for a sector that is economically and strategically vital”.
The department said energy prices “have reduced from their peak in late 2023” but “they remain too high” and it set out measures being taken to address this.
A national energy affordability taskforce has been established “to identify, assess and implement measures that will enhance energy affordability for households and businesses”.
The statement said the Government has “prioritised implementation” of the Planning and Development Act, which will “bring greater consistency, clarity and certainty to the planning system”.
