THE Government has reaffirmed that Dublin's dockland area will remain the hub for the long-term development of the international financial services industry in Ireland even though the current requirement for IFSC companies to locate in the Custom House Dock area will cease at the end of 2005, or 2002 in some cases.

The commitment to the docklands is part of a major new strategy document launched over the weekend by the Taoiseach, Mr Bertie Ahern, which is aimed at building on the success of the IFSC.

`The international financial services industry is now facing a period of change following the corporation tax agreement with the European Commission which will eventually lead to the elimination of the differing legislative regime for the IFSC and domestic sectors.

"The Irish Government's objective is to maintain a vibrant and growing international financial services industry in Ireland, building on the success of the IFSC, to maximise the level and quality of employment and activity, and to enhance sustainability through strengthened links with related sectors, including shared services centres and electronic commerce," said Mr Ahern.

As part of the strategy, various Government departments and agencies will nominate specific IFSC liaison officers and sections where these do not already exist, and a Public Sector Group chaired by the Department of the Taoiseach will ensure that the priorities are implemented.

"Front-office financial services activities will be encouraged to locate within the docklands hub close to the IFSC while back-office activities elsewhere in Dublin or the country will be facilitated where necessary to maintain competitiveness," the strategy document states.

In addition, in the absence of a specific requirement to locate in the Custom House Dock area, the Dublin Docklands Development Authority is to ensure the long-term provision of office, service and housing accommodation to allow the financial services industry in the dockland to grow.

This will include the development of office accommodation east of the IFSC and the rapid development of secondary office accommodation for back-office activities at East Point and the Poolbeg peninsula.

Once the requirement to locate in the IFSC goes, the IDA is to revise its marketing strategy and will develop sectoral specialities around nominated individuals in the agency. The activities of these specialists will be to represent the sectors internationally and to act as the Government's "front man".

The aim of the strategy document is to build on the success of the IFSC, where 6,500 are currently employed and where $100 billion of funds are managed. Half of the world's top 50 banks have operations in the IFSC and total assets of these grew 80 per cent last year to approximately £68 billion (€86 billion.)