Inside the world of business
Twitter ducks ministerial fanfare to break good news
HYPE AND jargon are two things on which the technology sector thrives. Equally, Government Ministers are never slow to turn up at an event to announce jobs, especially at the latest paradigm-changing provider of best practice cloud services which has chosen Ireland as the location to support its rapid international growth.
So there must have been some wailing and gnashing of teeth when Twitter told IDA Ireland its decision to locate in Ireland would not be announced at a press briefing in Government Buildings with the relevant Ministers – but by a tweet.
“Ireland is trending. Twitter to establish international office in Dublin,” was the message posted yesterday morning as most of the country rolled over to turn off the alarm clock.
While the low-key announcement signified a “massive win” in the words of Minister for Jobs, Enterprise and Innovation Richard Bruton, it also demonstrated the fundamentally different way that the latest crop of internet companies operates.
IDA Ireland has attracted Facebook, LinkedIn, Zynga and now Twitter, to its shores – four of the hottest companies in Silicon Valley. All were extremely circumspect about how many jobs they would create here and have not spent much time courting local media.
When Google came to Ireland in 2004, there was an expectation it would create 200 jobs. It now has more than 2,000 staff at its European operations centre on Dublin’s Barrow St and has just invested almost €200 million buying three office blocks on the street.
Facebook committed to creating 80 jobs when it announced its Dublin office in 2008, but now employs well over 200.
IDA Ireland is hoping a similar pattern will transpire at Twitter. If it does, the claims about Ireland being the internet capital of Europe will start looking a lot less like hype.
Flowing Clearstream
THE SALE of Irish medical devices business Clearstream Technologies illustrates the health of the sector in Ireland.
Founded as a result of a management buyout in 2000, the company has gone on to reward both its initial investors and those who helped fund its progress in the intervening years, including its 2004 flotation on London’s AIM market.
Clearstream found a niche manufacturing catheters, guidewires and stents sold by other higher-profile groups while developing its own branded line of products.
In a highly competitive market for coronary and peripheral vascular stents, Clearstream found a commercial space in the presence of giants such as Boston Scientific, JJ Cordis, Medtronic and Abbott – all of which have operations here – and managed to steer clear of the patent wars that are a feature of the sector.
The cash payouts to founding managing director Andy Jones and his team are well deserved.
Film tax breaks – uncut?
AND THE award for best use of tax breaks goes to . . . the Irish film and television industry. Last year was a period of record growth for screen production in Ireland, according to a report from the Audiovisual Federation, the Ibec group that represents the film, television and animation sectors. The edited highlights are that some 261 productions with a total production value of €388 million helped employment in the sector grow in 2010, with expenditure by the industry on Irish goods and services swelling to an all-time high of €205 million.
The Audiovisual Federation's figures don't include the economic impact of the industry on tourism, which is substantial. It is estimated that Ek Tha Tigeralone, the first Bollywood movie of its size to film in Ireland, will bring €1.2 million to the economy, create more than 1,000 short-term jobs and attract a new generation of tourists from India.
On the feature film side, Section 481 was the main source of Irish funding, contributing €9.6 million, although the Irish Film Board’s contribution of €9.1 million was not far behind. For independent producers, this plurality of funding is important, although as far as the film board is concerned, in the current climate, the most they can hope for in Budget 2012 is “maintenance” of its current budget, according to Barbara Galavan, chief executive of Screen Producers Ireland.
Section 481 is different because the business it attracts means it is a net contributor to the exchequer. Without it, Ireland simply isn’t “at the races” when it comes to attracting international productions, notes Galavan.
The previous government extended the relief until 2015. But with television producers in particular wanting to know if a tax break will be available for the full run of a successful series, the industry will be seeking a fresh extension to Section 481 soon – ideally, this December.
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Today
The Small Firms Association holds its annual conference in Dublin, with the Minister for Enterprise, Jobs and Innovation Richard Bruton giving an address
