This year AmCham celebrated its 60th anniversary. However, the presence of US multinationals operating in Ireland pre- dates our founding. Since the early 1900s, for example, US companies have chosen Ireland as a place to do business. Today, more than 800 US companies have operations here.
To use the analogy of the “spokes of a wheel” regarding the retention of our global competitive advantage, there are a number of spokes that will facilitate Ireland, if nur- tured correctly, as an enticing location for people to live and businesses to locate. Here, I’m going to highlight three: tax, talent and infrastructure.
On tax, the Government’s recent decision to sign up to the OECD global tax reforms represents a seismic shift for our economic and industrial policy. At the same time, the agreement now offers essential long-term certainty that the minimum corporate taxation rate will not be increased above 15 per cent. While Ireland will continue to provide businesses with stability, predictability and a pro-enterprise ecosystem as a signatory, we will need to strive harder to maintain our competitive advantage against some jurisdictions on the global stage to ensure our continued economic success.
Which brings me to talent. The Covid-19 pandemic and the shift to remote working has highlighted how the future of work will be as much about where people want to live as where companies wish to locate. The global battle for talent has begun and clear opportunities for Ireland exist.
Barrier
About 93 per cent of AmCham members have called out Ireland’s personal tax regime as a barrier to attracting and retaining talent, while 40 per cent see it as a barrier to further investment and expansion.
We have called on Government to commit to not increasing the personal taxation burden during the lifetime of this administration and to include a roadmap to reduce the burden to match international standards. Two further challenges to attracting talent are our accommodation offering and current delays with our migration and employment services system. Amcham has advocated for the Government’s “Housing for All Plan” to be delivered with urgency, while calling for further resourcing and digitisation of migration services.
Thirdly, as we look to infrastructure, Ireland needs to ensure capacity in the energy grid providing for current and future power needs. Enhancing our energy capacity while planning for meeting our sustainability goals with renewable and green energy must be accompanied by measures to reduce regulatory barriers urgently. Building on the goals of the National Development Plan, AmCham members have stressed that continued investment in physical and digital infrastructure, particularly the construction of important road and rail networks, is vital for Ireland to remain attractive to businesses and their employees.
Connectivity
Further, supporting connectivity is essential, given that we live in a society which is becoming increasingly digitised. The roll-out of the National Broadband Plan for those who rely on a stable internet connection for work, education and socialising is critical.
On the flip-side, the rising need for cybersecurity as a result of this increased digitisation, requires Ireland’s protection for business and public needs enhancement and adequate resourcing of the National Cyber Security Centre.
Like many countries, Ireland has its challenges, but there are many reasons to be optimistic about the future. Ninety-four per cent of our members recently said that their companies’ corporate headquarters have a positive view of Ireland as a place for future investment.
As the nation enters its second century of independence, we have an opportunity to make Ireland an even better place for people and businesses. To remain one of the best countries in which to live and do business, Ireland must ensure smart policy decisions are taken and implemented with speed.
We can achieve this by working together. AmCham members are eager to collaborate, assist Government however necessary and ensure that Ireland remains a wonderful place to call home.