CONSULTING GROUP Deloitte has been engaged by Minister for Jobs, Enterprise and Innovation Richard Bruton to carry out a study on the possibility of developing an International Content Services Centre in the Republic.
This would involve establishing Ireland as a leading centre for managing, trading, distributing and investing in intellectual property and arranging back-office fulfilment for global traders in this area.
In effect, this would be an IFSC for intellectual property.
The government hopes that a large number of high-quality jobs could be created in these specialised areas, with additional spin-off demand for legal, financial and other ancillary services. Tax incentives, regulatory changes, infrastructural supports and skills improvements are among the policy options potentially available to achieve the objective and will form part of Deloitte’s deliberations.
The Programme for Government committed Fine Gael and Labour to carry out a cost-benefit analysis to “support the development of an International Content Services Centre to make Ireland a world leader in managing intellectual property”.
Deloitte will begin its work in early January and has been asked to furnish the Minister with a report after 10 weeks. The group won the contract following a tendering procedure. It is expected to finalise contracts shortly.
It is understood that Mr Bruton is hopeful that this could provide a large number of high-end jobs in Ireland in the way the IFSC has done since the late 1980s.
Ireland already has some advantages in this space. There is already a base of relevant skills and support services in the IFSC. A large number of multinational companies with intellectual property requirements have operations here. A modern statutory framework for IP and a recently updated IP taxation regime exist.
Ireland also offers an English language location within the EU.
The study will involve a cost benefit analysis on a range of possible models for realising the development of such a centre in Dublin. These include the “light” model whereby Ireland simply attempts to attract companies’ intellectual property management on an ad hoc basis; the “environmental enhancement” model whereby the Government would enhance tax and legal incentives to create a more friendly environment; the “anchor tenant” model through which the State would seek to attract several key companies to establish Ireland as a centre of excellence.
There is also a potential “field of dreams” option whereby the Government underwrites and builds a full service centre and develops a trading platform.
The study will also assess the potential impact in terms of jobs, revenue and economic growth. It has been suggested that up to 45,000 jobs could be created over a 10-year timeframe. Deloitte will be asked to verify if such projections stack up with reality.
