Speech by the Taoiseach, Mr. Bertie Ahern, T.D. at the Annual Lunch for the International Financial Services Industry in Dublin Castle on Wednesday, 12th December, 2007 at 1.00pm
Introduction
I am delighted to be joining you on this, the 20th anniversary of the establishment of the IFSC. The IFSC is one of the great success stories of our economy. It is responsible for giving high quality employment to over 20,000 people and, last year, generated Corporation Tax of €1,118 million for the Exchequer. These are very impressive figures. The international financial services industry in Ireland has been a key contributor to the growth of our economy over the past 20 years. This could not have happened without all the people gathered here today and I think it is important to acknowledge that on this festive occasion.
I want to thank each and every one of you for your participation in the various Working Groups and Task Forces and for all the other work you do in support of the industry.
I particularly want to thank the Chairs of the different groups, Walter Brazil, John Larkin, David Dillon, Pat Wall and Gavin Caldwell. I am conscious of all the precious time which you give to the work of these groups. I am particularly conscious that it is your ambition and enthusiasm for the financial services industry which enables it to move forward and deal with the many issues which need to be addressed. Your efforts are much appreciated by the Government.
I would like also to take this opportunity to convey to both Sean Dorgan, who cannot be with us today, and who steps down from his role as Chief Executive of the IDA at the end of the month, and Muriel Hinch, who has retired from the Revenue Commissioners, every best wish for the future and to acknowledge their commitment and contribution to the work of the Clearing House Group over many years.
Review of the Economic Regulatory Environment
Those of you in the financial services industry will know the difference which a quality regulatory environment makes to Ireland’s competitiveness and to your ability to provide the best possible service to the consumer. As you are no doubt aware, the Financial Regulator has been subject to a number of positive independent reviews, including by the International Monetary Fund, Financial Action Task Force and the Comptroller and Auditor General.
Indeed, I am pleased to note that research undertaken by the IMF ranked the Irish system and structure of financial regulation first in the world in terms of its independence and accountability.
Regulation plays an important role in many sectors and not just financial services. Effective regulation is also vital to the ongoing development of key economic sectors such as communications, energy and transport.
While the regulatory landscape has changed hugely in these areas in recent years, there are certain gaps in our knowledge about the performance of these regulatory structures and their continued appropriateness in the face of the evolution of relevant sectoral markets. We need stronger international data and benchmarks in order to assess the comparative efficiency and effectiveness of Irish Regulators.
It is for this reason that the Government committed, in our Programme for Government, to review the economic regulatory environment.
As a first step, we are establishing a dedicated Oireachtas Committee to look at the efficiency of each of the key economic regulators.
Secondly, the Government is commissioning a major study to benchmark the key regulators against their EU and OECD counterparts, with a view to looking at their effectiveness. The exercise will allow us to draw on international experience and best practice in framing the future direction of sectoral regulatory policy.
It will commence following an open, EU wide recruitment process for appropriate independent experts which I am launching today.
Competitiveness and Skills
Competitiveness is, of course, a key objective of the international financial services industry. I was pleased to see that, this year, Ireland moved from 22nd place to 15th place in the City of London’s Global Competitiveness Study of financial services centres. But - as I know you will all agree - we cannot afford to be complacent.
When I launched Building on Success in September last year, I said that maintaining our world-class reputation and growth momentum can only be achieved if we continue to innovate and to be competitive. This is even more relevant today. I also said that innovation and education are crucial to the development and growth of the international financial services industry. Again, this is even more the case today. I am, accordingly, delighted to be able to launch today the Expert Group on Future Skills Needs Report on the “Future Skills and Research Needs of the International Financial Services Industry”.
This report sets down a challenge. The challenge is to ensure that the environment in which international financial services companies in Ireland operate remains attractive and that we leverage all possible international competitive advantage. We must also stimulate the development of indigenous companies in this area, whether they are providing support and service functions to existing multi national companies, or engaged in innovation and research activities intended to initiate the next wave of product and market developments.
Addressing the skills needs of the industry and ensuring an adequate supply of skilled workers is, I believe, of paramount importance to the continued success of international financial services in Ireland. We must address both the quantity and quality of skills available to the industry.
I believe that, having identified the skills issues of most concern to the industry, the time is right for Government Departments, State Agencies and the industry, to work together to deliver upon the recommendations set out by the Expert Group. In doing so, we can put in place a skills framework that will enhance our international competitiveness and contribute to the future development of the industry in this country.
I would like, on my own behalf and on behalf of my colleagues in Government, to thank the Expert Group on Future Skills Needs, Forfás and IDA Ireland, for their work in preparing this report. I look forward to hearing of the progress being made, as the actions necessary to achieve its objectives are carried through in the best interests of the industry.
Conclusion
In closing, I would like to thank you once again for all the work you have done over the past year in support of the industry. Your work is greatly appreciated. Have a very happy Christmas and a peaceful New Year.
Thank you.
ENDS