First priority must be to retain the strong base of existing companies in the region
The Chairman of the American Chamber of Commerce Mid West Region said that “economic conditions will remain extremely challenging in 2009 and 2010 and that the multinational community in the region, like every other business sector, will be focused on costs and productivity improvements to enhance competitiveness.
Speaking at a members briefing in Dromoland Castle this week, Mr. Bill Doherty said, “In the current climate every business has to focus on the bottom line and on delivering value to its customers. There is pressure on all businesses to achieve improved productivity, increased efficiencies and a more prudent cost base. In the multinational environment, where individual country subsidiaries are competing against each other for investment from the global parent, it is imperative that subsidiaries located here are cost competitive”.
Mr. Doherty said that the country’s international reputation is critical to corporations making investment decisions. “In this regard the credibility of Ireland’s response to changes in its economic fortunes will be imperative. It is already under scrutiny, as we have seen in the latest 2009 European Growth and Jobs Indicator Report where Ireland is 13th out of 14th countries for competitiveness. Fiscal policy will need to be prudent and our current budget deficit will need to be controlled and reduced within the 5 year time-frame set out by Government. There can be no slippage on this as it will have a very definite impact on our international reputation as a stable and agile investment location”.
Mr Doherty welcomed the Government’s decision to introduce a mini-budget but said that the government must make the tough decisions which are needed to bring the nations finances back on track. “While we understand the government’s decision to engage with the social partners, it did mean that valuable time was lost. There can be no half measures in the forthcoming mini-budget. The government has a duty to implement tough decisions and taxpayers must also wake up to the need for fiscal rectitude. We cannot continue to spend more than we earn, it is that simple”.
“In the Mid West we are seeing the pressure of these economic forces with companies such as Dell, Molex and Element Six announcing workforce reductions. While it is a terrible situation for the affected workers and their families, it is important to remember that these companies remain significant employers in the mid west and will continue to contribute to the local economy.
“There are challenging times ahead for the Mid West and the first priority must be to retain the strong base of existing companies in the region. The availability of a very well educated workforce, the presence of a University and Institute of Technology with strong research capabilities as well as critical infrastructure such as Shannon International airport and the roads network are key resources for the competitiveness of industry in the region and will help these companies to continue to compete in international markets”.
“Over 90 million euro was allocated in 2008 by the NDP for national road improvements and maintenance in mid west. National roads that received funding include the N7 Southern Ring Road, Phase 2 of the Limerick Tunnel Scheme (PPP), the N7 Limerick/Nenagh, and the N18 Crusheen to Gort roads. The completion of the Limerick Tunnel will be a major boost to the region and will significantly improve access between Dublin- Limerick-Shannon and Galway. The new Thomond Stadium epitomises the potential of the region – it was completed on time and within budget and is now a powerful attraction in bringing visitors to the region for sporting and musical occasions”.
Mr Doherty welcomed the establishment of the Task Force headed up by the very experienced Denis Brosnan but cautioned against unrealistic expectations. “People should not expect investment wins in the short term – the focus must be on protecting existing investment and positioning the region strongly for new investment when the inevitable global economic upturn comes”.
Mr Doherty also welcomed the decision by CityJet (Air France) to increase capacity on its Shannon – Charles De Gaulle route. “The decision by CityJet to base a plane in Shannon is a vote of confidence in the region. With CityJet flying to Paris and Aer Lingus flying to Heathrow from March, international connections into the Mid West have never been stronger. The introduction of full pre-clearance facilities at Shannon this year will help to strengthen the airport’s critical trans-Atlantic routes and gives Shannon a competitive advantage over other European airports”.
Mr Doherty added that economic renewal cannot be accomplished by Government alone. “The Government can only do so much”, he said. “It is up to the society generally and the business community in particular to join with the Government in addressing the broader competitiveness agenda and the need to restore Ireland as a competitive location for business. Our strong economic growth in the past decade gives us a firm foundation for the future provided we have the courage and vision to take the right decisions now. We can trade through the current difficulties and realise prosperity again; it is down to the next steps we as a country choose to take.”
Mr Doherty concluded his address to members by urging a yes vote in the forthcoming Lisbon Referendum. “Other countries in the developed world have seen their currencies and economies collapse and have had to resort to aid from the IMF. Ireland was not left alone and isolated as those countries were and thus we have been somewhat protected from the full impact of the financial turmoil. Ireland needs to remain at the heart of Europe and the American Chamber of Commerce will be campaigning hard for a Yes vote in the next referendum. Global investment decisions are influenced by many factors and there can be no room for doubt in the boardrooms of corporate America about Ireland’s position in Europe.”
