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Irish Times
4 days ago
- Business
- Irish Times
Skills gaps and mismatches are ‘eroding the competitiveness of Irish industry', says Ibec
Ireland's largest business lobby group, Ibec, says skills gaps and mismatches in the Irish workforce are 'eroding the competitiveness of Irish industry'. It comes amid calls for a new innovation tax credit in a separate report examining research, development and innovation activity in Ireland by the Industry Research and Development Group (IRDG) and KPMG. The suggested measure would build on top of the existing research and development (R&D) credit, without which 56 per cent of the multinational companies in the sample said 10 per cent or less of their R&D would remain in Ireland. However, constraints such as administrative complexity and time requirements were cited by almost four in 10 respondents as barriers to broader participation, the report said. READ MORE Research performed as part of the 2025 Innovation Index found that a significant amount of innovation 'doesn't always fit neatly into the current R&D Tax Credit'. The report calls for 'an overhaul of the existing system' and suggests the implementation of a green innovation credit to encourage investment in the area. Three-quarters of the study's 556 respondent firms said a 50 per cent tax credit for green innovation would lead to them investing in the space. Ibec's report says that, following a 'decade of underinvestment' in research and innovation infrastructure, some graduates are 'entering the workforce lacking necessary knowledge and skills' having received training on 'out-of-date equipment'. Ibec said it had fallen on employers to retrain graduates on systems that are based on modern technology as a result of the innovation deficit. In the second in a series of policy position papers on Ireland's competitiveness and productivity, Ibec said 'substantial increases' in core and capital funding for higher education institutions are needed to 'reinforce and boost capacity' and to reverse trends in student/staff ratios. It warned that skills gaps and skills mismatches are not just 'eroding the competitiveness of Irish industry', but also the State's 'capacity to deliver strategic ambitions' in housing, infrastructure delivery and the development of environmentally friendly industry. The document pointed to Ibec's recent Skills Survey showing that nearly three-quarters of Irish companies have experienced difficulties in recruiting new workers, with nearly half of businesses reporting that candidates lack critical skills and experience for the roles. Ibec said these responses point to a 'serious underutilisation' of the Irish workforce. 'Ireland already has a significant skills mismatch among the workforce where businesses cannot find workers with the necessary skills to fill vacancies, or workers in their existing jobs do not have the right skills for their roles.' The paper said it was 'critical that our current and future workforce are ready to meet the shifting demands of the labour market', noting that the National Training Fund (NTF) offers a 'real competitive advantage' if used correctly. The lobbying group called for employers to have a 'stronger role in setting the strategic direction and allocation' of the fund in order to meet the demands of their respective industries. It said the availability of apprenticeships, despite their role in addressing competitiveness issues in primary industries, was 'limited by an insufficient funding model and an overly bureaucratic and cumbersome system'. The paper welcomed the commitment in Budget 2025 to invest €1.5 billion from the NTF over the next six years, but expressed concern over governance issues with the fund.
Irish Times
15-05-2025
- Business
- Irish Times
Medicine firms try to unscramble Donald Trump's conflicting populist visions
Pharmaceutical companies are well used to adjusting to account for the occasional political turmoil – one Irish industry source said this week that managing risk was in their DNA – but what they certainly do not like is uncertainty. That is the big challenge for the sector following the latest pronouncements from Donald Trump . The pharma sector had been girding itself for tariffs: indeed, if what Cantillon hears is accurate, they seemed to be confident, if not comfortable, that they could live with a charge in the 20-25 per cent range. Many big players had tried to blunt the impact of tariffs and get into the US president's good books with the announcement of major investments in new or expanded operations in the United States . READ MORE But Trump's announcement that he wanted drugmakers to lower prices of brand-name medicines by up to 80 per cent has thrown things into a spin. Investing further in markets where prices are being pushed down runs counter to the pharma playbook. Swiss pharma giant Roche , the fifth largest company in the sector by sales, committed only last month to invest $50 billion (€45 billion) in the US. 'Should the proposed EO [Executive Order] go into effect, Roche's ability to fund the significant investments previously announced in the US will be in question,' the company said in a statement on Wednesday hours after the US president's remarks. That is the contradiction at the heart of Trump's current populist play. [ Pharma sector fear cuts in Irish drug manufacturing on back of Trump policy ] Analysts and legal experts say a policy to force prices down – never mind getting those same drugmakers to push prices up in defiance of agreements in other countries – would be difficult to implement. But perhaps that misses the point. Apart from deflection, Trump's commitment is to showmanship and his vision of himself as the world's great dealmaker. Pharma executives and lobbyists in Washington DC and elsewhere will be trying to assess just what needs to be done to give Trump the appearance of a win he can claim as his without undermining their own businesses. The alternative is a drawn-out legal battle that neither side will relish.
