6 days ago
Ireland must fix infrastructure gaps urgently to secure foreign direct investment
Ireland must address infrastructure gaps with 'great urgency' if it is to successfully attract and grow foreign direct investment (FDI) into the country particularly in light of the new tariff regime coming out of the US, the American Chamber of Commerce Ireland has warned.
In its pre-budget submission, the Chamber makes a number of recommendations for the Government to focus in order to make the country a more appealing location for investment.
Chief executive of the American Chamber of Commerce Ireland Paul Sweetman said with the current 'challenging environment' with tariffs, prompted by US president Donald Trump, competition for investment and talent ' is continuing to increase'.
According to the Chamber, 90% of its members surveyed said their corporate headquarters have a positive view of Ireland as an investment location, and 68% said their headquarters already have plans to invest in Ireland over the next five years.
It also found that 96% of members said believe the ability to meet climate targets is critical in preserving Ireland's competitiveness, while the same number of respondents expressed concern over the impact that reaching full capacity at Irish airports and ports would have for growth and investment.
Mr Sweetman warned that 'infrastructural gaps in key areas including housing, energy and transport are a challenge to Ireland's competitiveness'.
The recently announced revised National Development Plan commits to strong investment across a number areas, but it is vital Ireland addresses infrastructure gaps with great urgency.
"This can position the country for continued success in attracting and growing foreign direct investment into the future.'
On the infrastructure gap, the Chamber said that along with delivering housing, 'critical transport connectivity projects including MetroLink and Dart+' are also needed along with funding to Uisce Éireann to support long-term development projects.
The Chamber survey of members found that 98% indicated the availability of housing is a challenge for their employees.
In this area it also called for enhancing the electricity grid capacity while supporting renewable energy growth.
In the area of taxation, the Chamber has called for tax credits in the areas of digitalisation and decarbonisation as well as the extension of current income tax exemptions and reducing personal tax burdens on employees to support the attraction and retention of talent.
The Chamber also called for policies around attracting and retaining talent which includes 'advancing measures to address skills gaps and further support apprenticeships, expanding roles eligible for employment permits and providing an annual budget to support innovation'.
Mr Sweetman said that the budget should focus on 'economic levels' within the Government's control.
'Our pre-budget submission outlines smart investment and policy decisions that will best prepare Ireland to leverage opportunities in talent attraction, research and development, digital solutions and energy over the years to come,' he said.
'Winning the next wave of FDI is achievable if Ireland builds upon its existing strengths. This, in turn, will support the growth of the 970 US operations in Ireland, directly employing 210,000 people and a further 169,000 people indirectly.'
