THE chief executive of the Irish Management Institute, Mr Barry Kenny, has taken issue with the Culliton Report's emphasis on the indigenous industrial sector and the report's criticism of the emphasis on multi-national companies. "I would differ from this view," he said.

Addressing the 250 delegates at the institute's annual conference in Limerick, Mr Kenny said that, based on the goods we purchase, "if we wish to continue this lifestyle and buy these goods, we have no choice but to make sure we manufacture our share of these products in Ireland". In addition, Mr Kenny questioned the emphasis on overseas acquisitions by many of Ireland's bigger companies such as CRH, Smurfit, the food companies and the banks.

"In general terms they have been successful in buying businesses abroad within their operating competence, and, by applying good management skills to these businesses, they have generated considerable value for their shareholders.

"I would ask if this is an optimum response," said Mr Kenny, adding. "Should we now be looking to our international companies to shift their focus to organic development to invest in building the businesses of the future?"

Looking at the small to medium sized enterprises, Mr Kenny said companies in this sector were not profitable enough.

Many family owned businesses did not recognise the need for a proper return on capital and very often would compete beyond economic logic and economic reality.