Speech by An Taoiseach Brian Cowen TD at the Business of Aging Conference, at the Royal Hospital, Kilmainham, on Wednesday March 3rd, 2010 at 9am
Good Morning.
It gives me great pleasure to meet with you all today at the first Business of Aging conference.
This conference is timely and ambitious, and its subject is an example of the fresh thinking we need today as we focus on those areas that will bring growth to our economy and jobs to our people.
It is also an example of how we can turn challenges into opportunities.
Our world is aging. For the first time in the history of the planet, there will be more people over 65 than under five and many of the children born today will live to 100. Our lifespan is increasing every day here and across the world. Indeed it is believed that the first person to live to 150 has already been born.
This shifting demographic pattern is presenting all countries with great challenges and It will take imagination and courage to face them.
But there are huge opportunities as well. In five years a quarter of the worlds population will be over 50. This cohort, known as the Silver Market, is becoming the fastest growing market in the world and the figures show that it is also one of the wealthiest. In the US, this group control more than 50% of the discretionary spend. The figures are just as impressive in Australia, Canada, the UK and all across Europe. In Ireland alone, those over 65 have a declared income of over €6.5bn euro, across Europe it is over €3 trillion euro.
The silver market has different needs to the general public and provides Ireland with great opportunities to develop new products and services aimed at this sector.
International companies such as Phillips, Intel and IBM are focusing on this market now as they see that the future will be a very different marketplace to today.
The impressive list of speakers lined up for today will include Irish companies such as Home Instead and Valentia Technologies who have also targeted this market and achieved success.
As a small open economy we must trade internationally to thrive. Much of the successes of the past decades were built on the back of a strong exporting base comprised of foreign and indigenous exporters. Despite the economic downturn, this sector is holding up well, and in some cases showing growth.
As we prepare for the next stage of growth, we must play to our strengths and focus on those areas where we have an advantage and where we are ahead of the curve. The Business of Ageing is one of those areas where we already have exciting projects underway, projects that will give us that vital advantage.
Over the past decade, Science Foundation Ireland has invested heavily in both science and engineering research. In addition to the economic benefit this may have for Ireland, many of the SFI funded research projects will have a significant impact on areas such as health, environment and new technologies which will enable active ageing, assisted living for the elderly and improvements in life expectancy.
The first Irish Longitudinal Study on Ageing (TILDA) is being undertaken by a team in Trinity College supported by funding from the Department of Health & Children, Atlantic Philanthropies and Irish Life. This comprehensive study will explore the health, lifestyles and financial situation of 8,000 to 10,000 people as they grow older, observe how their circumstances change over a 10 year period and provide us with a unique knowledge base into the future.
The IDA and Intel Ireland are partnering on a research programme to explore technology solutions to support independent ageing. There is enormous potential in this area to help in the areas of isolation, education, community participation and health services.
We have a unique collaboration within the Ageing Well Network between companies such as Intel, IBM, the Chambers of Commerce and our own agencies such as Forfas, IDA, Enterprise Ireland and Science Foundation Ireland exploring the opportunities in this space and how they might be exploited.
The cumulative results of all of this leading research will provide a deep understanding of the needs of our aging population and will form the basis on which we build products, businesses and services which can be exported all over the world.
Ireland will only thrive if we play to our strengths. The Irish advantage is our people. And it is our people that will always be the most critical ingredient in our national performance. It is their ingenuity and creativity that will drive the next phase of our economic development. If we build on the natural advantage of our human capital and adopt new, strategic ways of thinking and doing business we will realise our vision of building a Smart Economy.
It is the vision of a green, high tech, high value economy, supported by a pervasive culture of entrepreneurship that we need to realise if we are to enjoy sustained economic prosperity and a high standard of living throughout the whole of our lives.
We are living in challenging times, but as we know, all challenges bring opportunities. If we look at one of the greatest challenges of our generation, that of Climate Change, we can see the benefits and opportunities that the focused quest for solutions has brought. The challenge of global warming has lead to the development of a host of new technologies, energy solutions and a keen environmental awareness. I believe the challenge posed by our aging demographic can lead to similar radical and innovative solutions and that we have the ability here in Ireland to lead the world in this field if we work together.
Two weeks ago a young man from Tallaght, Richard Baneham, was awarded a BAFTA for his contribution to the animated film Avatar. This weekend, he and two Irish companies will be in the running for Oscars in Hollywood. This will be our third nomination in the field of animation in a few years. How did we get so good at it?
Well, it started back in 1986 when the the IDA offered Sullivan Bluth Studios the largest grant in the country's history to relocate from New York to Dublin, in return for a 5% government ownership of the studio. The studio opened with a staff of 85 but soon expanded to employ over 300 people. To build up this workforce, the studio brought young Irish people to the USA studio to train, and Bluth helped to set up an animation course at the nearby Ballyfermot Senior College.
The company closed down after a while, but its Irish employees went on to found some of the best animation companies currently creating content today. Also, the Ballyfermot College course survived and was augmented by another course in DIADT. This meant fresh recruits were available for the companies.
Some of the start-up companies were assisted by Enterprise Ireland, bringing them on trade missions to festivals and markets, creating contacts and giving them good business acumen.
The companies used Irish culture and stories to create unique, high quality content such as "Granny O Grimm", "Give up your Oul Sins" and "The Secret of Kells" which have been sold all over the world and nominated for Oscars.
Over the past decade, the Irish animation sector has flourished with hundreds of people now employed in this multi-million euro industry. Ireland is rightly regarded as a world leader in the animation field with Irish companies creating sophisticated and leading-edge 2D and 3D animation for cinema screens, television, web, mobile and games consoles.
This is what happens when the IDA brings a new company with new skills to Ireland, start-ups are formed in the same sector, support is received from Enterprise Ireland, Irish content is used and the education system adapts to the needs of the new industry.
I tell this story because I believe that the success of this sector can be replicated across all our sectors.
Coming up with the products and services needed by an ageing society fits in perfectly with this strategy. I firmly believe that Ireland has the potential to become a centre of excellence in this Silver Market. Not only can we research the products here at home in our businesses and universities, but we can also provide a research base for international companies and Governments who also face the challenges of an aging world. We can develop the products and services that this sector will need both here and abroad, and we can market them in the way that this sector of the market demands.
The Business of Ageing is sound entrepreneurial thinking and has the potential to generate extra income and jobs for our people, young and old. And while this is important to Government, we should never forget our primary responsibility of our duty of care to our senior citizens. Their taxes and their efforts over many years built up and sustained our country and Government has a responsibility to look after them in retirement.
We believe that every citizen should have a security of income in their old age. That is why, despite the most difficult Budget in a generation, we protected the old age pension.
What this Business of Ageing Conference reinforces is that the needs of enterprise and the needs of social solidarity are not mutually exclusive. By ensuring older people have a decent disposal income in their golden years, we can also generate business and jobs if Irish companies can think smart, produce the right products and services that our older people need and market them in the appropriate way.
This day is about opportunity. I urge you to grasp it. I wish you well today and I sincerely hope you have a fruitful conference.
Go raibh mile maith agaibh.
ENDS