Mark Redmond: ‘We need to look to our natural advantages post-Brexit’

Uncertainty seems to have been the overriding economic theme since Britain voted to leave the European Union on June 23rd last year. Since then, there have been surprise election results in both the US and the UK and no one seems sure just what will happen next. American Chamber of Commerce chief executive Mark Redmond concedes there is a level of uncertainty to deal with but prefers to emphasise the positives and the factors which do lie within our control.

“People are talking about the level of uncertainty in the world that people and businesses are having to deal with,” he says. “But there are certainties as well. These include the fact that the EU will remain the most important trading partner for the US and that Ireland will remain the only English-speaking common-law gateway to the EU. We have to keep a laser-like focus on that in the months and years ahead.”

There are also factors within our control as a country, he adds. “They come under two broad headings – talent strategy and capacity. We really need a clever and compelling national STEM [science, technology, engineering and maths] strategy to provide the pipeline of talent to meet future requirements. There also must be a particular focus on girls and STEM.”

He points to STEAM – with the ‘A’ standing for arts – as another area of opportunity. “This is the fusion of the creative arts and STEM and the possibilities in that area are fantastic.”

Capacity is critical if Ireland is to be in a position to absorb current levels of FDI as well as the future waves that will come, Redmond believes. “The capacity of our capital city to absorb people, to offer choice of accommodation, rental or long term, choice of schools, a good IT and physical infrastructure – that is all vitally important. And the whole country needs improved broadband access everywhere. Ireland has a wonderful opportunity to become a centre of excellence for data and other advanced technologies but we need the connectivity to do that. Improved connectivity will also allow regions, like the north west, which suffer from physical infrastructure deficit to catch up on the rest of the country.”

It is not just physical capacity which is at issue, however. “The capacity of our personal tax system is also important. We are concerned about the competitiveness of our personal tax system and how it affects investment. These are all factors within our control. There has never been greater competition for FDI and we have to stay ahead in terms of our offering. It’s not just a question of keeping pace.”

Key strengths

On the plus side, Ireland has key strengths in research, development and innovation. “The capacity of the public and private sectors to work together on research in Ireland is very valuable,” Redmond notes. “We saw an excellent example of this in the American Chamber of Commerce Innovation Awards this year, where one of the winners was a collaboration between the University of Limerick and Stryker on a material to repair bone defects caused by neurosurgery. Those countries that back research through investment will be those that win the most interesting FDI investments in future and Ireland is very strong in that regard.”

He argues that Ireland also has an opportunity to establish global leadership positions in key areas. “We can take on some of the great challenges. We should pick one or two issues of global importance in areas such as renewable energy or agri-science. Who knows where this could lead? When you build a reputation for excellence in an area you get a cluster effect and great things tend to happen.”

Another very positive factor is the strength of the two-way relationship between Ireland and the US. “The evolution of the two-way relationship has been quite remarkable,” he says. “In the 19th century, the US was an importer of Irish manual labour. Now CRH is the number one asphalt company, second in aggregates and third in ready-mix concrete in the US. We have Irish people building remarkably successful companies out of the US. These include the Collison brothers with Stipe and Dr Pearse Lyons with Alltech – two great companies founded and run by Irish people.”

On the flip side of that coin is US investment in Ireland, which is now valued at $343 billion (€304.2 billion). “More than 150,000 people are employed by US companies in Ireland and they are responsible for a further 100,000 indirect jobs. That investment has been built up over a long number of years. When US companies come here they tend to stay here due to Ireland’s unbelievable track record and the nature of that relationship which is very much built to last.”

Looking to the future, he believes Ireland has a lot going for it. “We need to look to our natural advantages post-Brexit. It is most unfortunate that the UK is leaving the EU but we have to look forward. Companies are now thinking about changing their footprint in order to remain in the EU. Ireland has to make itself attractive to them. We are an English-speaking, common law jurisdiction and this makes Ireland a natural choice. Ireland is also one of most pro-business of EU member states with an enlightened attitude towards data. We are also positioned in a time zone which makes Ireland a perfect location for a centre of management between the west coast of America and Asia.”