Martin Shanahan, chief executive of IDA Ireland, on Monday met Philip Lane, the governor of the Central Bank, to discuss issues including the potential for an influx of investment from the international financial sector arising from Brexit.
Mr Shanahan revealed details of the meeting during a press conference at IDA’s headquarters to outline the strong flow of inward invetsment by IDA-supported companies in the first six months of the year.
The IDA chief said, following the meeting, he is “confident” Ireland’s regulatory system can cope if there is any influx of banks from London or elsewhere seeking to retain certain access to the European single market.
Opportunities
“We discussed where we say things post-Brexit,” said Mr Shanahan. “We discussed where we saw opportunities. The main purpose of the meeting was simply to share information, mainly from IDA to the Central Bank.”
IDA has been courting London-based banks, who might be nervous following the Brexit vote, to offer Ireland as a potential location for investment should they wish to branch out from the UK.
Mr Shanahan said he was confident that invesyment would not be curtailed by a shortage of residential property for arriving executives, or commercial property. He said about 2 million sq ft of high-end office space is coming onstream.
The chief executive revealed investments by IDA-supported companies in the first half of 2016 will create more than 9,000 jobs.
The organisation said the UK's decision to leave the European Union may present potential opportunities for the country in foreign direct investment, but the full impact would not be known for some time.
“Ireland’s stability, the certainty on EU membership and therefore access to the European market, coupled with the strong value proposition that Ireland already offers would be important in the period ahead,” said IDA chief executive Martin Shanahan. “This value proposition also includes access to talent (both Irish and European), a competitive, transparent and consistent taxation regime and the ease of doing business.”
Performers
IDA Ireland said its strongest performers during the six months were technology and business services, and international financial services.
In total, Ireland won 115 projects in the first six months of the year, compared to 110 in the the same period in 2015.
IDA Ireland is about to ramp up its international advertising to capitalise on any extra mobile invetsment that might become available. The agency said it would not mention Brexit, and Mr Shanahan declined to put a figure on the cost of the extra marketing investment.
Mr Shanahan also voiced support for a push by the American Chamber of Commerce in Ireland, revealed in today’s Irish Times, to give multinationals tax breaks on share options awarded to executives.
He said there was “the kernel of a point” in the argument, as Ireland needs to remain competitive.
