OPINION:GRADUATING IN the mid-1980s, the economic environment dictated that the majority of my engineering class did not even consider a job in Ireland. Most of us travelled to England, Europe and the US, where some of us remained to pursue new career opportunities, writes
MARTIN MURPHY
Almost 55,000 graduates will emerge from Irish institutions this year. They are our brightest and our best, the new emerging talent, full of youth and vigour with innovative ideas that will play a major role in creating the dynamics of a thriving economy.
We have invested hundreds of millions of euro educating these graduates, but recent ESRI figures show that we will lose thousands of them to Australia, New Zealand and Canada in 2011.
What has happened to this country that sadly, a quarter of a century later, we have come full circle to find that our children are now faced with the same prospect as we were?
Last week, the Central Bank revised downwards its economic forecasts for 2011, predicting growth in gross domestic product (GDP) of only 1 per cent. This does not provide any comfort that the scourge of unemployment and emigration can be reversed in the short-term.
With the general election weeks away, the political parties must tell us how they will reverse this tide and ensure Ireland is a good place to do business, not just for international companies interested in investing here, but also for indigenous enterprises.
The Central Bank statement is a stark reminder that job creation needs to be at the top of the agenda. As the parties finalise their manifestos, I believe the approach from the Departments of Enterprise, Trade and Innovation and Education will be vital. These two portfolios have it in their gift to create the right environment for job creation.
In my view, their priorities must be:
Competitiveness and productivity to attract international investment and ensure domestic stimulus. We have seen our competitiveness rise by 10 to 15 per cent. We need to see the same improvement again to ensure Ireland is on the global map for investment. In HP where I work, it’s fair to say that internationally we are now viewed by our colleagues more favourably than we were two or three years ago. We must hold the line on competitive adjustments, drive efficiencies across the board and not load additional costs on to business. Reform of the education system and of teaching methods so that our students are equipped with the problem-solving, communication and creativity skills to drive this economy into the next decade. This includes a renewed focus on maths and science, foreign languages and online learning. But this investment should not be for export. We can only reap the benefits if we can keep jobs here.
To engage business leaders to play their part in the national agenda, both by using their skills in assisting with public sector reform and by providing strategic and practical advice to the new government. Creating jobs is a long game involving hard yards.
That is why I call on the private sector to drive the jobs agenda. If each multinational in this country committed to engaging 10 graduates in work placements and each SME engaged to keep two graduates in employment for a year, we would already be minimising the possibility of emigration for up to 10,000.
The improvement of the business environment for SMEs and start-ups. This includes easing the regulatory burden and minimising business and payroll taxes. We also need to do more to help transform more Irish businesses into multinationals.
HP first invested in Ireland in the late 70s. We continued our investment programme because of the talented and skilled workforce and the availability of labour. HP Ireland can still fight hard to continue to attract global investment into this country but it is imperative that our brightest and best remain on the island.
These commitments may or may not be vote winners, but if implemented they can form the basis for a winning Ireland. Now is the time for every politician and business leader in the country to make sure that we write our sons and daughters into the script.
This world doesn’t owe us a living. We need to fight for our prosperity by planning for tomorrow today.
Martin Murphy is managing director of Hewlett Packard in Ireland