Building on Success - International Financial Services Industry in Ireland
FOREWORD
This review of the future of the international financial services industry in Ireland builds on the success of the strategy for the sector produced in 1999. The IFSC, and the international financial services industry in general, has enjoyed enormous success since its beginnings in 1987. This continued success and its importance to the economy is illustrated by the net trade surplus of €4.9 billion in IFSC activities in 2004. The growth in IFSC exports comprising mainly insurance, financial services and business services exports, has been 234 per cent since 1999. The number of people employed in the industry has grown dramatically in the years since - approximately 18,000 people are now employed directly in the different sectors of the international financial services industry, located primarily in the Docklands area. This is now a vibrant part of Dublin that has seen the introduction of residential, commercial and, more recently educational links. The Docklands area has been transformed and continues to expand from strength to strength.
In the early days of the International Financial Services Centre, the public and private sectors carefully and successfully nurtured the IFSC brand. It is important to the economy as a whole that this progress is maintained and strengthened to reflect the new realities within which the industry is now operating.
The environment for the further development of the international financial services industry is undergoing change and a crucial change in this regard was the transition to the 12½ per cent corporation tax rate appropriate to the whole industry since 31st December 2005. As a result of this change it is imperative that we continue to focus on growing this key sector ensuring that we have the right mix of policies to support its development.
It is also important to recognise that the international financial services industry in Ireland is no longer only a Dublin phenomenon. It now extends beyond the capital and has become an important part of the Government’s strategy for regional development. With the right infrastructure, marketing and skills development, the regionalisation of the sector can continue to complement Dublin as the primary hub for the industry in Ireland.
The Government believes that the time is opportune to re-affirm its commitment to the industry, to build on the work undertaken since 1999 and to implement an agreed work programme to ensure that we proactively pursue appropriate actions for the further development of the industry. My Department and the IFSC Clearing House Group, still maintains the central role it has occupied since the beginning of the IFSC in 1987 and it is intended that it should play an active part in overseeing the implementation of this report.
I believe that this document provides a robust plan that will sustain the industry in the years ahead – an industry which has been an outstanding success in the years since 1987.
An Taoiseach
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