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Irish Post
12 hours ago
- Business
- Irish Post
Ireland's financial services hit record levels
IRELAND'S financial services sector has reached a major milestone, now employing more than 60,000 people—up from just 35,500 in 2015. The nearly 70% growth over the past decade is in part to do with Brexit, which caused many companies to relocate operations from Britain to Ireland. However, a new consultation paper from the Department of Finance warns that this Brexit-driven momentum is likely coming to an end. The paper, published as part of a public consultation process on the next phase of the 'Ireland for Finance' strategy, highlights the need for new approaches to ensure continued growth in the sector. 'Ireland is now home to many global financial services giants, many of whom have chosen it as their EMEA headquarters,' the paper notes. 'Post-Brexit, Ireland experienced a further influx of IFS firms relocating from the UK.' But it also cautions that the advantages gained from Brexit are likely to diminish as emerging international hubs like Singapore and Dubai ramp up efforts to attract financial services companies. Launched in 1987 under then-Taoiseach Charles Haughey, the 'Ireland for Finance' strategy has helped transform the country into a global financial services powerhouse. Today, Ireland hosts approximately 600 international financial services companies and ranks as the sixth-largest exporter of financial services in the world. It is also the third-largest domicile for investment funds and has developed strong specialisations in sectors such as banking, funds, asset management, insurance, reinsurance, fintech and aircraft leasing. Minister of State at the Department of Finance, Robert Troy, said Ireland's success stems from a clear and consistent policy approach. In a recent interview with FinTech Magazine, he pointed to fintech as a core focus area of the current strategy. 'This is a sector where we've seen rapid growth over the last decade,' he said. 'And I think that growth probably stems from the fact that we had a clear strategy for Ireland for finance.' Troy also underscored the need for balanced regulation, noting that the Central Bank of Ireland's 'strict but fair' approach has been essential to maintaining investor confidence. 'We're dealing with people's savings, with transferring assets. They want certainty and protections in place.' In addition to rising global competition, the consultation paper outlines other challenges for the sector, including the green transition and sustainability objectives set by both Ireland and the EU. The paper notes that the financial services industry will play a critical role in funding climate-related projects. It also highlights the need to encourage people to move savings from low-interest bank accounts into more productive investments that support long-term economic development. The Programme for Government has set a goal of creating 9,000 new jobs in the IFS sector by 2030, but the Department of Finance warns that in today's uncertain global environment, simply holding onto existing jobs is equally important. Last year, a report by Indecon found that the funds and asset management sector alone delivered nearly €1 billion in direct tax revenue. The public consultation, which is open until September 19, invites stakeholders to contribute their views on how Ireland can continue to grow its financial services sector while identifying barriers to competitiveness. The next phase of the 'Ireland for Finance' strategy will aim to ensure that Ireland remains a globally attractive destination for financial firms, even as the international landscape becomes more complex. See More: Economy, Finance, Finance Minister, Robert Troy
Irish Daily Mirror
a day ago
- Business
- Irish Daily Mirror
Government slammed for 'vague' €275.4 billion National Development Plan
The government's announcement of the €275.4 billion National Development Plan (NDP) has been slammed as ministers have been accused of keeping it vague due to an expected lacklustre budget. Taoiseach Micheál Martin, Tánaiste Simon Harris and Independent TD Seán Canney announced funding proposals for the latest NDP on Tuesday. It's the government's long-term plan for large-scale infrastructure projects, covering the period up to 2035. The plan is reworked and reviewed every few years. Despite this being the largest ever capital investment plan in the history of the State, the government has been slammed for the 'unusual' decision to provide few details on the projects. This could be down to an expected disappointing upcoming budget, as politicians may want to save the details of exciting projects until then. However, the Taoiseach said this lack of detail was done purposely to give ministers a chance to draw up a list of projects, with announcements coming 'closer to the budget'. Research Professor at the Economic and Social Research Institute (ESRI) Dr Alan Barrett said it's difficult for anyone to sink their teeth into this report as it's so vague. Speaking on RTÉ's Today with Claire Byrne on Tuesday, he said: 'We have been used to over the years getting the details of the projects, why it's not happening on this occasion we are not entirely sure. 'Today's document reminds me of the annual estimates process, where departments are being given an indication of what their allocation is going to be. "The idea that now we are having a document with a significant amount of money being launched but not getting a clear sense of what the projects are - but perhaps more importantly the extent at which they relate to one another - that is a little concern I would have today.' Despite economic experts and the opposition finding the lack of details in the NDP disappointing, here is what we know so far: Housing From 2026 to 2030, the government plans to invest €35.955 billion in housing, with Public Expenditure Minister Jack Chambers saying housing is the main priority. The Taoiseach echoed this as he outlined a target of 300,000 new homes in this timeframe, with 12,000 a year being social housing. Minister Paschal Donohoe and Minister Jack Chambers announcing details of the revised National Development Plan and the Summer Economic Statement at Government Buildings (Image: Stephen Collins / Collins Photos) This is in line with the current Programme for Government targets. Social Democrats housing spokesperson Rory Hearne said 'throwing billions of euros at the housing crisis without announcing a radical reset in policy" is not going to work. He added that the NDP 'gives no indication that the government is planning to move away from the measures that have plagued housing provision in the last decade". Sinn Féin's housing spokesperson Eoin Ó Broin said the plan will not result in "increased delivery of social and affordable homes". Water A total of €12 billion - outside of the housing allocation - has been earmarked for water infrastructure development. The Taoiseach said this investment is critical to 'support new house building industrial development and regional growth'. Health Some €9.25 billion has been allocated to the health service under the NDP, which is almost double the investment of the previous plan in 2021. There is little detail on projects this will be used on, as the new plan outlined seven previous health projects that have been completed under the NDP in the last three years. The Irish Hospital Consultants Association (IHCA) has welcomed this allocation to the sector. However, with little detail on projects, it has called on Health Minister Jennifer Carroll MacNeill to ringfence the required funding for the implementation of Electronic Health Records and prioritise the rapid expansion of our current hospital capacity. Transport Some €24.33 billion is being invested into transport up to 2030, with €2 million earmarked for 'low-carbon transportation projects'. This includes the MetroLink underground line for Dublin. However, it's not expected that construction will begin until at least 2028. However, €2.2 billion has been slammed as 'not enough' by some, including Labour's transport spokesperson Ciarán Ahern. He said: 'MetroLink is supposed to be the country's flagship public transport project and €2 billion is no small sum, but in the context of the overall cost of the project, it's nowhere near enough. "We're talking about a fraction of what's actually required to see this project through." There is no mention in the NDP of other projects that the money will be used on with respect to other public transport services such as buses or trains. Climate and energy Exchequer funding of €5.6 billion has been allocated to climate and energy, as the Taoiseach said expanding investment here is 'critical to our national security and to realising the enormous potential of AI to future economic development'. The government is increasing its equity shareholdings in ESB to €1.5 billion and EirGrid to €2 billion, which was widely welcomed by both. Education The Department of Education and Youth is receiving €7.55 billion in the new NDP. It will be used to facilitate the construction of school places in primary, post-primary, special classes and special schools between 2026 and 2030. A further €4.55 billion is allocated to higher and further education. Culture, Communication and Sport Some €2.22 billion has been earmarked for this department, however, there isn't yet any information on how the funding will be used. Subscribe to our newsletter for the latest news from the Irish Mirror direct to your inbox: Sign up here.
RTÉ News
a day ago
- Business
- RTÉ News
Hospitality boost in Budget to shrink workers' tax cuts
The big winner from next year's Budget is going to be the hospitality industry. That will happen at the expense of income taxpayers. The cost of reducing VAT from 13.5% to 9% for restaurants, bars and cafés is going to be up to €1bn in a full year, Minister for Finance Paschal Donohoe said. That will be out of a package of tax cuts of €1.5bn, according to the Summer Economic Statement, which was published by the Government earlier. In other words, two-thirds of the capacity for reducing taxation could be absorbed by the hospitality industry. Mr Donohoe said when the Coalition made the commitment to cut the rate of VAT it meant there would be "tradeoffs and consequences" and "there are other things we are unable to do". He warned the threat of US tariffs meant that it would "not be right to grow the tax package given all we are confronting". In Budget 2025, the average worker benefited by around €1,000 from reduced taxes. That was based on a package of €1.4bn. When the Government proceeds with the VAT reduction for the hospitality industry, it would leave €500m for tax cuts elsewhere. On that basis, ordinary workers won't enjoy a similar reduction in taxation next year as they did in 2025. Trimming VAT for hospitality was a commitment which was originally made during the General Election in November last year and it was included in the Programme for Government in January this year. It would be difficult to renege on such a clear political promise. Another important element of the Summer Economic Statement is that it is predicated on zero tariffs being imposed on exports from Ireland to the US. Currently many sectors are free from tariffs including pharmaceuticals and computer chips. But other areas such as food and drink exports have been hit with duties of 10%. While the deadline for a deal on tariffs is 1 August, the issue has been long fingered twice by US President Donald Trump who has variously suggested tariffs of 20%, 30% and even 50% on EU goods. There is a very clear caveat in the Summer Economic Statement, that if the trade war between the US and EU worsens, the Government will have to revisit the tax package. It means the coming weeks and possibly months will be critical in determining the shape of the Budget.
The Journal
2 days ago
- Business
- The Journal
Houses, water, health and Metrolink: The key points from the National Development Plan
THE GOVERNMENT HAS announced funding proposals for the latest National Development Plan (NDP) this afternoon. The announcement, made at Government Buildings by Taoiseach Micheál Martin, Tánaiste Simon Harris and independent TD Seán Canney, was made at Government Buildings this afternoon. The NDP is the government's long-term plan for what large-scale infrastructure projects will be needed in Ireland over the next five to ten years. This iteration covers the period up to 2035 and sets out a total investment of €275.4 billion. Advertisement Every few years, the development plans are re-worked and reviewed by governments to ensure there are plans in place to meet things like housing needs to account for Ireland's growing population. The plans also cover demands on public transport and roads and whether people have adequate health services now and into the future. The plans are often ambitious and sometimes described as 'wish lists' by ministers. However, under the current government, ministers were instructed to submit projects that could be delivered in the short- to medium-term, rather than ideas that might never see the light of day (as has been the case in the past). There are also concerns that Ireland is playing catch-up with the rest of Europe when it comes to infrastructure, which is why a key focus in this NDP is housing , along with water infrastructure and Ireland's energy sector . So, what's in it? Housing The government plans to invest €35.955 billion in housing from 2026 to 2030. €28.275 billion of this has been assigned to housing itself and €7.680 billion to water infrastructure. Describing housing as the 'most critical priority' for the Government, the Taoiseach outlined a target of 300,000 new homes. The 300,000 includes privately developed homes and the figure reaffirms the target contained in the Programme for Government. Of those new homes the Government has set a target of delivering an annual average of 12,000 new build social housing units by 2030. Water (inc sewerage, water services) Including funding from outside today's NDP allocation, a total of €12 billion has been released and earmarked specifically for critical water infrastructure investment. Martin said that increased investment in water facilities is 'critical' to meeting demand for more infrastructure. 'This is critical to meet the heightened pace of demand for infrastructure due to increased economic growth and will support new house building industrial development and regional growth,' Martin said. The government's ability to meet its housing targets has been called into doubt by economists who have raised concerns about the state's ability to provide the infrastructure needed to serve housing developments, most notably water. Related Reads Roads, houses and water: Ireland's biggest ever infrastructure plan to be announced today Members of the media at today's annnouncement. Eamonn Farrell / © Eamonn Farrell / © / © Transport (roads, public transport) The government plans to invest €24.33 billion in transport between 2026 and 2030. This includes €2 billion from the Infrastructure, Climate and Nature Fund (ICNF) that is being allocated to 'low-carbon transportation' projects – in particular, the MetroLink underground line for Dublin . The MetroLink would see an underground rail line running between the north and south of Co Dublin, with stops in the suburbs, the city centre and at Dublin Airport. An underground rail line for Dublin was first proposed in a government plan in 2005 but was shelved for several years during the recession. It's now expected that construction may not begin until at least 2028 . Taoiseach Micheál Martin said the total investment will go to 'extending public transport, improving road networks and road safety, promoting electrification and supporting active travel and greenways'. Health The health service is to receive €9.25 in infrastructure investment under the new National Development plan from 2026 through to 2030. In 2021 just €5.7 bn was committed to spending on healthcare infrastructure for 2021-2025. The Government said that this 'substantially enhanced' provision will support the delivery of 'equitable' health services around the country. Minister for Health Jennifer Carroll MacNeill has sought funding for further work on the introduction of an electronic health record and other digitalisation projects, which was also a key focus for the last NDP. The proposed Metrolink project. Climate and energy Exchequer funding of €5.6 billion has been earmarked for infrastructure spending by the Department of Environment, Climate and Communications. The government is increasing its equity shareholdings in ESB and EirGrid to the value of €2 billion and €1.5 billion with a view to enabling the companies to 'significantly increase capital investment to expand electricity transmission and distribution network infrastructure'. 'Even though there are many countries internationally who are pushing to move in the opposite direction, we believe that the climate crisis is acute and addressing it must remain a priority,' the Taoiseach said. Martin said expanded investment in energy infrastructure and diversifying sources of energy are 'critical to our national security and to realising the enormous potential AI to future economic development'. Increased investment in energy infrastructure is also an important part of the government's plans to address the housing crisis, Martin said. Reporting by Christina Finn, Daragh Brophy, Lauren Boland, Eoghan Dalton, David MacRedmond and Eimer McAuley. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
RTÉ News
2 days ago
- Business
- RTÉ News
Govt to outline money set aside for tax cuts in budget
The Government will publish the Summer Economic Statement today which will outline how much money will be set aside in the budget for tax cuts. The publication comes as the Minster for Finance Paschal Donohoe has been increasingly cautious about the public finances due to the threat of escalating tariffs from the US. Today's statement will set out how much tax will be collected and how much will be allocated to capital and current spending. The Department of Finance said it is focused on maintaining the stability of the public finances amid increasing uncertainty. It said the Government will continue to put money into the Infrastructure, Climate and Nature Fund, and the Future Ireland Fund. It said: "As a small open economy, we are vulnerable to external developments. This is why it crucial that we have the resources available to maintain capital investment even in the event of an economic shock." Much attention today will be on the scope for tax cuts next year. A lot of that could be absorbed by a VAT reduction for hospitality which the Coalition committed to introduce in its Programme for Government. Mr Donohoe has also ruled out one-off cost-of-living measures, a step which has drawn criticism from the Opposition. Speaking ahead of this morning's meeting of the Cabinet, Mr Donohoe said his department's Summer economic statement will lay out the parameters for Budget 2026. "This is something we will have to keep under review in light of the economic environment that we are in and the volatile and complex environment with regard to global trends," he said. He added: "We really appreciate that so many are finding it very hard to get by with the cost of living at the moment, but we also have to make the case to our country for the need to make choices if we are going to be investing many billions more into better water and building more homes, ensuring that we have access to the energy that we will need in the years ahead" "We do have to make choices. We have to prioritize investment in that which can support our country continuing to grow," he said. The Department of Finance said: "We are delivering on the Programme for Government commitment to increase capital investment in key areas, improving people's quality of life, boosting competitiveness and helping to attract and retain investment. "At the same time, we will continue to use the resources available to us to invest record levels of public money across the public service improve healthcare, education and social protection." Minister for Public Expenditure Jack Chambers will outline expenditure plans for the coming year. He will say the Government is "moving away from the one-off measures of the past". He will also say the measures in Budget 2026 will be permanent and sustainable "as well as targeted measures for those who need the most support."
