Cost-competitiveness ‘crucial for FDI’

Ireland’s competitiveness is crucial given current geopolitical uncertainty, the American Chamber of Commerce (AmCham), whose members include some of the country’s biggest multi-national employers, has told the Government.

In a submission to the Department of Enterprise, which has carried out a consultation on a White Paper on enterprise policy, the lobby group said cost-competitiveness was flagged as important to maintaining foreign direct investment employment here by 100pc of the respondents to recent research.

“With geopolitical circumstances leading to increased economic uncertainty, ensuring Ireland is viewed as a cost-competitive location when compared with competitor jurisdictions is important in sustaining business development and growth,” it said.

Some 95pc of respondents to the survey said they have a positive view of Ireland as an investment growth location.

“However, Ireland cannot be complacent as competitor jurisdictions seek to emulate and compete with Ireland in attracting investment, business, and talent,” stated the submission.

AmCham also highlighted the importance of political stability in Ireland.

“Ireland is globally recognised as a rules-based democracy committed to international institutions and norms. This commitment, and the consequent political stability, is greatly appreciated by both domestic and international business. AmCham would welcome Ireland’s ambitions in this regard being reflected in the economic strategy.”

It also recommended reducing our national debt to help protect against uncertainty.

“To adequately address any future economic shocks which may occur, without risking the provision of core services and the development of vital infrastructure projects, government must outline a roadmap for fiscal sustainability, including a five-year plan to reduce the public debt burden to sustainable levels.”

AmCham said security of energy and water supply were important for growth.

“Security and cost-competitiveness of Ireland’s energy and water supply, and capacity for current and future demands, will have a direct impact on the ability of business to grow. AmCham recommends a continued focus on the development of offshore wind, and infrastructure capable of pivoting to green hydrogen,” it said.

The submission also highlighted the need for investment in education, particularly in the digital space.

“Tackling the gender disparities existing in Stem subjects will support the advancement of women in key industries, including advanced manufacturing and life sciences.

“The enterprise strategy should encourage women to pursue careers in the Stem fields which would result in greater gender balance in the leadership of companies in these fields in the longer-term.”

It called for more investment in research and development.

“In 2020, Ireland’s expenditure on RD&I was 1.2pc of GDP while the EU average was 2.3pc. This discrepancy must be overcome to ensure enterprise in Ireland is best placed to have a global impact.”

The Government has said the “White Paper on Enterprise will ultimately serve as a cornerstone in protecting the core elements which make Ireland’s economy attractive for enterprise to flourish”.

Reporting: The Irish Independent