Transcript: Samara McCarthy on Ireland's Burgeoning Economy | Dec 10, 2005

Samara stands behind a transparent acrylic lectern and addresses an unseen audience.
She's in her late thirties, with long wavy chestnut hair. She's wearing glasses, a washed pink tailored suit, and a pearl necklace.

She says JUST TO GIVE YOU A
BASIC OVERVIEW OF IRELAND, THE
SIZE, THE POPULATION, WE'RE A
VERY SMALL ISLAND IN NORTH
EUROPE, A POPULATION OF FOUR
MILLION PEOPLE, AND THE AREA, AS
YOU SEE, IS 27,000 SQUARE MILES,
SO I BELIEVE YOU COULD FIT ABOUT
NINE IRELANDS INTO ONTARIO AS SUCH.

An infographic pops up showing the map of Ireland and key data on the country which Samara reads.

Samara continues AS YOU CAN SEE, OUR EXPORTS FROM
G.D.P. ACCOUNT FOR 92 percent, SO WE
ARE HIGHLY RELIANT ON THE
INTERNATIONAL MARKET AND FOREIGN
DIRECT INVESTMENT INTO IRELAND.
THAT IN ACTUAL PHYSICAL MONEY IS
AROUND 1.66 BILLION CANADIAN
DOLLARS.
PER CAPITA, THAT'S AROUND
41,000 CANADIAN DOLLARS PER
PURCHASING POWER PARTY.
NOW, THAT IN RELATION TO THE
REST OF EUROPE IS ABOUT 123 percent OF
THE EUROPEAN AVERAGE AT THIS TIME.
AGAIN, INWARD INVESTMENT FOR THE
G.D.P. IS ABOUT 17 percent, AND AGAIN,
THAT WOULD BE RELATED TO, FOR
EXAMPLE, INTEL HAS INVESTED FIVE
AND A HALF BILLION EURO INTO
IRELAND INTO
(Unclear word)
MANUFACTURING PROJECTS.
WYETH HAS PUT IN A
BIOPHARMACEUTICAL PLANT THERE,
WHICH IS THE LARGEST IN THE
WORLD, FOR ONE AND A HALF
BILLION EURO.
SO THERE IS MAJOR INVESTMENT AT
A SIGNIFICANT LEVEL GOING ON IN
IRELAND AT THE MOMENT.
IRELAND'S HISTORY IS VERY
DIFFERENT TO A LOT OF THE REST
OF THE DEVELOPED WORLD.
WE BECAME A FREE STATE IN 1922,
SO FROM 1922 TO AROUND 1958 WE
WERE VERY MUCH FOCUSSED
INWARDLY.
IT WAS VERY MUCH AN
AGRICULTURAL-BASED COUNTRY, SO
MUCH SO THAT EVEN THE
SECOND WORLD WAR WAS KNOWN AS
"THE EMERGENCY" RATHER THAN THE WAR.
(Laughing)
YOU KNOW, EVERYTHING WE THOUGHT
ABOUT WAS LIKE "HOW WILL WE
SURVIVE," NOT THE REST OF THE
WORLD AT THAT TIME.
IN 1958 TO '73, WE STARTED
OPENING UP AS WE REALIZED THAT
FIRST OF ALL THE RESULT OF
EMIGRATION WAS ASTRONOMICAL.
EVERYBODY WAS HAVING TO
EMIGRATE.
THERE WERE NO JOBS THERE.

A caption appears on screen. It reads "Samara McCarthy. Industrial Development Agency of Ireland. Ireland's Economic Success. Joseph L. Rotman School, U of T. June 24, 2005."

Samara continues THERE WAS A VERY
STRONG PROTECTIONISM GOING ON IN
IRELAND AT THE TIME, SO NO
INWARD INVESTMENT COULD TAKE
PLACE.
NOTHING WAS HAPPENING.
THERE WAS AN ECONOMIST CALLED
T.K. WHITAKER WHO CAME UP A
REPORT AT AROUND 1959 SAYING
THAT WE SHOULD LOWER TARIFFS,
OPEN UP THE MARKET.
NOW, NOT MUCH TOOK
PLACE WITH HIS REPORT UNTIL
ABOUT 1971, WHEN SEAN LEMASS,
THE
TAOISEACH
OR THE
PRIME MINISTER AT THAT TIME,
REALLY INTEGRATED HIS PROGRAM.
BUT IN THE '60s, WE DID OPEN UP
A LOT OF THE, YOU KNOW, LOWERED
TARIFFS, AND ONE OF THE REASONS
IRELAND HAS BEEN SUCCESSFUL IS
WE FOCUSSED ON SPECIFIC NICHE
AREAS, AND IN THE '60s WE
FOCUSSED ON PHARMACEUTICALS AND
TRIED TO GET PHARMACEUTICAL
COMPANIES TO ESTABLISH IN
IRELAND.
AND AROUND 1965, SQUIBB CAME IN,
NOW BRISTOL-MYERS SQUIBB, WHICH
WAS CLOSELY FOLLOWED BY PFIZER,
AND ONCE YOU GET A FEW NAMES IN,
MORE ALWAYS FOLLOW, SO NOW WE
HAVE THE GENZYMES, J and J,
(Unclear name).
EVERYBODY IS PUTTING IN LARGE
PROJECTS THERE, WHERE WE HAVE
EIGHT OUT OF THE 10 TOP FIRMS IN
THE WORLD ARE NOW THERE AND 70 percent
OF ALL PHARMACEUTICALS.
THE TOP MAJOR BLOCKBUSTER DRUGS
ARE MADE IN IRELAND, BOTOX FOR
THE WORLD TAKING PLACE IN
(Unclear word).
(Laughing)
FROM 1973 TO '87, WE HAD A LOT
OF SUCCESS IN A SENSE.
FIRST OF ALL IN '73 WE JOINED
THE EUROPEAN ECONOMIC COMMUNITY,
NOW KNOWN AS THE E.U., WHICH
MEANT THAT WE WERE LESS RELIANT
ON THE U.K. AND WERE ABLE TO
OPEN UP AND HAVE MARKETS WITH
THE REST OF EUROPE AS WELL AT
THAT TIME.
ALSO DURING THE TIME FRAME, THE
GOVERNMENT PUT TOGETHER A
STRATEGY, AGAIN BASED ON
T.K. WHITAKER'S, EXCEPT REALLY
FOCUSSING ON DIFFERENT
INDUSTRIES AGAIN AND LOOKED VERY
CLOSELY AT THE COMPUTER SOFTWARE
INDUSTRY AT THAT TIME AND
ATTRACTING THOSE SORT OF
COMPANIES TO IRELAND AND ALSO
FOR PUTTING IN TAX BREAKS AND
GRANTS FOR COMPANIES AT THAT
STAGE.
FROM 1987 TO PRESENT, A LOT OF
CHANGES.
THERE'S BEEN EXCEPTIONAL GROWTH,
AND THAT IS WHAT PEOPLE ALWAYS
TALK ABOUT, EXCEPT IN REALITY,
THE REAL GROWTH TOOK PLACE IN
THE MID '90s UP UNTIL 2000.
IN 1987, THE FIRST NATIONAL
DEVELOPMENT PLAN WOULD HAVE
TAKEN PLACE, WHERE THERE WAS A
VERY STRICT RULING WHERE WE
STOPPED BORROWING MONEY FROM
OVERSEAS, SO WE WENT THROUGH A
VERY DIFFICULT TIME FOR IRISH
PEOPLE AS SUCH, EXCEPT
INTERNATIONAL COMPANIES SAW THIS
AS BEING VERY STRATEGICALLY
IMPORTANT, AND THEY STARTED
INVESTING IN IRELAND AT THAT
STAGE, AND THEN EVERYTHING
DEVELOPED FROM THERE.

A bar chart pops up titled "Ireland's economic growth."
It compares the growth of the E.U., the U.S. and Ireland in several periods of time, showing that Ireland has always grown more than the others.

Samara continues JUST TO GIVE YOU AN
OVERVIEW OF EXACTLY HOW OUR
ECONOMIC GROWTH HAS TAKEN PLACE,
AS YOU CAN SEE, WE ARE AHEAD OF
THE E.U. AND U.S. THROUGHOUT
SINCE THE EARLY '70s.
NOW, WE SHOULD BEAR IN MIND WE
WERE STARTING FROM NOTHIN', SO
THAT'S WHY WE ARE SO MUCH HIGHER
THAN EVERYONE ELSE FOR THE '70s
RIGHT UP TO 1987, AND THEN '88
TO '93 WITH THE BEGINNING OF THE
DEVELOPMENT PLANS AND THEN AS
YOU CAN SEE, THROUGH THE '90s
JUST WENT THROUGH THE ROOF.
THE REAL BASICS OF
THE SUCCESS HAS BEEN THE
DEVELOPMENT DECISIONS FROM
EARLIER DECADES.
AS I SAID, EVERYTHING CAME
TOGETHER IN THE '90s, BUT IT
REALLY STARTED BACK IN THE '50s.
THE I.D.A. AS SUCH WAS FORMED IN
1949, SO WE'VE BEEN AROUND A
LONG TIME.
THE DECISIONS...
THERE WAS A LOT OF...
AS I SAID, WE HAD SPECIFIC AREA
NICHES THAT WERE FOCUSSED UPON,
SO PHARMA IN THE '60s, COMPUTERS
IN THE '70s, AND IN THE '80s
REALLY LOOKED INTO SHARED
SERVICES IN A LARGE WAY AND
SOFTWARE.
THE EUROPEAN SINGLE MARKET IN
THE EURO ZONE HAS BEEN VERY
IMPORTANT TO US.
IT'S BEEN A VITAL PART OF OUR
SUCCESS.
ALSO OBVIOUSLY WE HAVE GAINED
VERY SUBSTANTIALLY FROM BEING A
MEMBER OF THE EUROPEAN UNION.
THEY HAVE GIVEN US AN AWFUL LOT
OF MONEY, AND IT HAS HELPED US
BUILD UP THE INFRASTRUCTURE THAT
WE NOW HAVE IN PLACE.
THE SOCIAL PARTNERSHIPS AND THE
ECONOMIC STABILITY I WILL GO
INTO IN A LATER SLIDE.
THE ECONOMIC STABILITY IS
ACTUALLY VERY IMPORTANT WHEN
COMPANIES ARE LOOKING AT FOREIGN
DIRECT INVESTMENT, THE FACT THAT
IRRESPECTIVE OF WHICH GOVERNMENT
IS IN POWER, THE SAME PROGRAMS
STAY IN PLACE, ESPECIALLY, I
THINK, WHEN YOU SEE WHERE WE
CAME FROM, FROM AN AGRICULTURAL
BACKGROUND, WHERE THERE WAS
NOTHING THERE AT ALL, AND THERE
IS A HUNGER IN IRELAND THAT IS
MAINTAINED, SO PEOPLE KNOW IF
SOMETHING'S FIXED, THEY ARE NOT
WORKING, THEY'RE NOT GOING TO
TRY TO CHANGE IT AT ALL STAGES.
AND THAT ECONOMIC STABILITY IS
ONE OF THE KEY FACTORS.
EVEN NOW WHEN COMPANIES ARE
LOOKING AT WHERE TO INVEST IN
OTHER PLACES IN EUROPE, THEY
KNOW FROM PAST RECORD HOW THINGS
HAVE WORKED AND THAT THEY CAN
RELY ON WHAT THEY'RE BEING TOLD.
THE DEMOGRAPHIC GAINS AND
EDUCATION, DEMOGRAPHIC GAINS
FROM PEOPLE MOVING BACK, FROM
WHERE THEY ARE MOVING AND THE
TYPES OF SKILLS THEY ARE TAKING,
AND THE EDUCATION.
EDUCATION IS SOMETHING THAT WE
HAVE BEEN INVESTING IN FOR
30 YEARS.
IT'S PART OF THE STRATEGIC
PROGRAM SINCE THE EARLY '70s
THAT HAVE BEEN PUT IN PLACE,
CONTINUOUSLY LOOKING AT THE
TYPES OF SKILLS THAT ARE BEING
TAUGHT IN SCHOOLS AND HOW THEY
WILL MERIT THE SORT OF COMPANIES
WE ARE TRYING TO ATTRACT.
AND EVEN THOUGH, YOU KNOW, OUR
WHOLE INFRASTRUCTURE AND
INDUSTRY IS NOT BASED ON FOREIGN
DIRECT INVESTMENT, IT IS SUCH AN
IMPORTANT PART THAT THE SORT OF
COMPANIES THAT WE BRING IN
DEVELOP INTO THE IRISH COMPANIES
THAT THEN ARE SPAWNED FROM THESE
COMPANIES.
SO THE IDEA IS, VERSION OF
THINGS, IS VERY IMPORTANT
CONTINUOUSLY.
AGAIN, AS WE'RE SHOWN IN OTHER
PRESENTATIONS, EDUCATION IS NOT
NECESSARILY...
OUR
(Unclear word)
EDUCATION IS
NOT NECESSARILY UNIVERSITY SKILLS.
IT HAS BEEN SKILLS TO DO THE
JOBS THAT ARE NEEDED AT THAT
TIME.
ONCE YOU HAVE THAT BASE, YOU CAN
BUILD UPON THAT, BUT ONE OF THE
REASONS WE HAVE BEEN MORE
SUCCESSFUL THAN OTHER PLACES IN
EUROPE IS PEOPLE IN OTHER AREAS
IN EUROPE MIGHT HAVE MORE
UNIVERSITY GRADUATES IN
SPECIFIC, YOU KNOW, FIELDS, BUT
IF THOSE GRADUATES DO NOT HAVE
THE TECHNICAL SKILLS NECESSARY
TO DO THE JOBS, COMPANIES ARE
NOT GOING TO MOVE THERE, AND IF
THEY DON'T MOVE THERE, YOU'RE
NOT GOING TO MOVE UP THE VALUE
CHAIN AND, YOU KNOW, FURTHER
IMBED THEM INTO THE FURTHER
SKILLS.
THE LOW CORPORATE TAX RATE WAS
INITIALLY, IN THE EARLY '70s, A
LOT OF COMPANIES GOT A ZERO TAX
RATE FOR A 10-YEAR PERIOD, AND
THEN IT MOVED TO 10 percent TAX RATE.
IN 2003, THAT WAS
CHANGED TO 12.5 percent FOR ALL
COMPANIES FOR ALL TRADING
PROFITS IN IRELAND, IRRESPECTIVE
IF IT WAS AN OVERSEAS COMPANY OR
AN IRISH COMPANY.
THAT IN ITSELF HAS OPENED UP AS
WELL.
THAT USED TO JUST BE FOR
SPECIFIC INDUSTRIES.
NOW THAT'S OPENED UP FOR ALL
INDUSTRIES THAT THERE IS TRADING
ACTIVITY, WHICH HAS MEANT THAT
WE ARE ABLE TO GO OUT AND
ATTRACT DIFFERENT TYPES OF
OPERATIONS TO COME TO IRELAND.
FOREIGN DIRECT
INVESTMENT, AS I SAID, IS A
KEY INSTIGATOR OF ALL OF THIS
AND CONTINUES TO BE SO.
WE HAVE IN IRELAND PRACTICALLY
80 percent OR 90 percent OR MORE OF ALL F.D.I.
IS DONE THROUGH THE I.D.A., AND
WE'RE ACTUALLY A VERY SMALL
ORGANIZATION.
THERE'S 284 OF US, AND OUT OF
THAT, THERE IS ABOUT 30 PEOPLE
WORLDWIDE.
THE REST ARE IN IRELAND.
WE HAVE ABOUT 15 PEOPLE IN
NORTH AMERICA, ABOUT 15 PEOPLE
IN ASIA, AND THAT'S ABOUT IT.
(Laughing)
WE HAVE ONE OR TWO IN EUROPE.
BUT ONE OF THE REASONS I THINK
FOREIGN DIRECT INVESTMENT HAS
WORKED SO WELL IS THAT WE ARE
SMALL, THAT THERE IS NO
RED TAPE.
SO IT'S A ONE-STOP SHOP.
YOU CALL A COMPANY, YOU DEAL
WITH THAT PERSON, AND YOU ARE
THEIR FOCAL POINT AND THEIR
CONTACT PERSON FOR EVERYTHING
THAT THEY NEED TO GET ORGANIZED
IN IRELAND.
SO IT'S GETTING THEIR KIDS IN
SCHOOLS TO FINDING THEIR DENTIST
TO GETTING THEM HOUSING TO
PUTTING THEM IN TOUCH WITH THE
CORRECT PEOPLE WITHIN THE
GOVERNMENT TO THE MANAGEMENT
CONSULTANTS TO SITE AVAILABILITY
TO THE PLANNING.
YOU LOOK AFTER EVERYTHING FOR
THEM AND WORK VERY CLOSELY WITH
THEM.
SO IT'S THE EASE OF OFFERABILITY
FOR THESE COMPANIES IS ONE OF
THE REASONS THEY KEEP COMING
BACK TO IRELAND, AND THEY SAY
THAT WHEN THEY GO ELSEWHERE,
THEY NEVER KNOW WHO TO CALL OR
EVERYBODY PASSES THE BUCK TO
SOMEBODY ELSE OR THERE'S SO MANY
DIFFERENT DEPARTMENTS INVOLVED
IN EVERYTHING.
WE HAVE DIFFERENT DEPARTMENTS
DEVELOPED, EXCEPT THEY ONLY HAVE
TO DEAL WITH US, SO WE DO ALL
THE RUNNING AROUND FOR THEM AT
THAT STAGE.
AND, YOU KNOW, WE ALSO BUILD UP
A COMFORT ZONE WITH COMPANIES,
YOU KNOW, AND THEY REALLY
APPRECIATE THAT, AND THEY THEN
BECOME OUR SPOKESPEOPLE FOR US.
THEY IN TURN TELL PEOPLE ALL THE
TIME...
JUST HEARING THAT LAST WEEK
ABOUT A COMPANY THAT WE WERE
TRYING FOR AGES TO TRY AND
ATTRACT TO IRELAND, AND WE
THOUGHT WE'D DONE A GREAT JOB
AND WE GOT THEM IN, BUT AT THIS
CONFERENCE, ONE OF THE...
A COMPANY THAT HAS...
THEY CAME IN ABOUT FIVE YEARS
AGO TO TAKE ON 200 JOBS, AND
THEY NOW HAVE 700 PEOPLE THERE
SAID IN ACTUAL FACT THAT
COMPANY, EVERY TIME WE GOT OFF
THE PHONE THEY WERE CALLING THEM
TO SEE, YOU KNOW, IF WHAT WE
WERE SAYING WAS TRUE, WAS IT HOW
IT WORKED, DID THINGS CHANGE OR
WERE WE REALLY WHAT WE SAID WE
WERE.
AND THANKFULLY THEY SAID, "GREAT
STUFF," SO THEY'RE HERE.
(Chuckles)
ANOTHER KEY, ESPECIALLY NOW WHEN
WE ARE NO LONGER A LOCALIST
DESIGNATION OR LOCATION, IS THE
PERFORMANCE OF THE IRISH
MANAGEMENT.
A LOT OF THE MANUFACTURING JOBS
ARE GOING TO THE FAR EAST OR TO
EASTERN EUROPE, BUT WHAT THEY
ARE DOING IS THEY ARE OFTEN
PUTTING IN A MANAGEMENT CENTRE
OR EUROPEAN HEADQUARTERS
OPERATIONS INTO IRELAND NOW
INSTEAD.
ANOTHER AREA THAT ALL THE
COMPANIES TALK ABOUT IS THAT
THEIR EASE OF OPERATION IN
IRELAND, THAT THEY CAN RELY ON
THE MANAGEMENT.
THEY OFTEN DON'T REALIZE THERE
HAS BEEN A MISTAKE OR THERE HAS
BEEN AN ISSUE UNTIL IT'S BEEN
RECTIFIED, THE FLEXIBILITY OF
WORKING WITH PEOPLE AT ALL
TIMES.
THIS AGAIN PROBABLY GOES BACK TO
THE HUNGER OF COMING FROM A
PLACE WHERE WE WERE AT 20 percent
UNEMPLOYMENT.
RIGHT NOW WE'RE AT 4.4 percent
UNEMPLOYMENT.
NOBODY WANTS TO GO BACK TO THAT
PLACE, SO EVEN IF YOU RUN OUT...
WE'VE HAD FOR EXAMPLE A LARGE
SOFTWARE COMPANY IN LIMERICK RAN
OUT OF BLANK DISKS FOR A BIG JOB
IT HAD TO GET OUT.
THEY CALLED UP THEIR COMPETITORS
UP THE ROAD AND SAID, "CAN YOU
GIVE US 20,000 DISKS?
WE NEED THEM TOMORROW."
THEY WERE THERE WITHIN AN HOUR
BECAUSE YOU NEVER KNOW WHERE
THEY'RE GOING TO BE EMPLOYED THE
NEXT DAY OR JUST TO KEEP IRELAND
AS SUCH, THE IMAGE UP, BECAUSE
IT AIDS AND BENEFITS EVERYBODY.
SO THAT CONTINUOUSLY HAPPENS ALL
THE TIME.
YOU FIND A LOT OF THE COMPANIES
WILL SAY THAT THEY PUT...
A LOT OF THEIR THINK TANKS ARE
TAKING PLACE IN IRELAND BECAUSE
PEOPLE ARE MORE OPEN TO TALK
ABOUT WHAT IS HELPING THEM AND
WHAT IS NOT HELPING THEM AND
WHAT ARE THEIR MAJOR HINDRANCES
WHEN THEY'RE AWAY FROM CORPORATE
HEADQUARTERS.
SO, AND THEY'LL SAY EXACTLY
WHAT'S TAKING PLACE FAR AWAY AND
REALLY COME UP WITH STRATEGIC
IDEAS, AND THAT IS HAPPENING
MORE AND MORE.
AND AGAIN, THE I.D.A. ORGANIZES
THAT FOR THEM, AND WE MIGHT HOST
THE WEBSITE FOR THEM THAT THEY
CAN LOG ON WITH THEIR IDEAS.
YOU KNOW, WE DON'T GIVE THEM ANY
MONEY TOWARDS THIS, DON'T DO
ANYTHING BUT JUST PUSH TOGETHER
A STRUCTURE THAT THEY CAN WORK
THROUGH AT ALL TIMES AND SHOW
THAT IT CAN WORK, THEY'RE NOT
GIVING AWAY THE COMPANY SECRETS,
THAT EVERYTHING DOES WORK BETTER
IN EVERYBODY'S END AND FOR
EVERYBODY'S BENEFIT WHEN YOU DO
THINGS LIKE THAT.
AND AGAIN, THE EXPORT FOCUS AND
THE GLOBAL ORIENTATION, WE'RE
TOO SMALL A COUNTRY TO LOOK
INWARD.
WE'VE SEEN WHAT THAT'S DONE IN
THE PAST, SO WE CONTINUOUSLY
LOOK AT THE WHOLE WORLD AS OUR
MARKET.
THERE IS CONTINUOUSLY CONSENSUS
ON THE DEVELOPMENT PRIORITIES,
HOW THINGS ARE GOING AHEAD,
THROUGH FORUMS LIKE THIS AT ALL
TIMES.
AND THE SHARED EFFORTS TO
ACHIEVE THE NATIONAL GOALS, THEY
ARE INVOLVED AT EVERY SINGLE
LEVEL, AND I'VE SAID
IRRESPECTIVE OF WHAT GOVERNMENT
IS IN POWER, THERE ARE CERTAIN
PROTOCOLS THAT THEY HAVE TO
STICK TO AND THEY DO STICK TO.
YOU KNOW, THE TAX RATE IS NOT
GOING TO BE CHANGED.
THE DEVELOPMENT PLAN PROGRAM,
EVEN IF THE GOVERNMENT CHANGES,
THAT IS IN PLACE AND WILL STAY
IN PLACE AT ALL TIMES.
WE'RE FORTUNATE THAT WE DO HAVE
THE YOUNGEST POPULATION IN
EUROPE.
46 percent ARE AGED UNDER 26 YEARS.
ANOTHER AREA, IT'S 57 percent OF
GRADUATES ARE IN THE AREAS IN
WHICH WE ARE NOW TRYING TO
TARGET.
THIS WOULD BE GOING BACK TO AN
EXPERT SKILLS GROUP AND SIMILAR
FORUMS THAT WERE PUT TOGETHER
OVER THE PAST 20, 30 YEARS.
WE WERE CONTINUOUSLY LOOKING AT
WHAT SORT OF INDUSTRY WAS IN
IRELAND NOW AND WHAT WERE WE
TRYING TO ATTRACT AND MAKING
SURE THAT THE COURSES IN THE
UNIVERSITIES WERE NOT JUST FOR
WHAT'S HERE NOW BUT THAT WE
ACTUALLY WOULD HAVE GRADUATES
IN THE SKILLS THAT WOULD BE
NECESSARY IN FIVE, 10 YEARS DOWN
THE LINE.
THE BUSINESS-FRIENDLY POLICIES
FOR BOTH IRISH AND OVERSEAS
COMPANIES IS ONE OF THE KEY
STRATEGIC AREAS OF WHY WE ARE
SUCCESSFUL AT THIS STAGE.
THE TAX, OF COURSE,
IS VERY IMPORTANT TO COMPANIES,
BUT IT IS NOT THE MAIN REASON
WHY THEY COME.
THEY COME FOR THE TAX ALONG WITH
THE WORKFORCE ARE NOT JUST
HIGHLY TECHNICALLY SKILLED, BUT
THEIR CAPABILITIES ARE JUST
THEIR ABILITIES THAT THEY CAN
CONTINUOUSLY THINK OUTSIDE THE
BOX.
THEY WILL GO OVER AND
ABOVE AT ALL TIMES.
THEY'VE FOUND THAT THEY ARE SO
EFFICIENT AT THIS STAGE THAT
THEY CANNOT KEEP UP, THAT THEIR
OTHER PLANTS CANNOT KEEP UP WITH
THE EFFICIENCY THAT'S TAKING
PLACE IN THE IRISH COMPANIES OR
THEIR IRISH DEPARTMENTS, SO MUCH
SO NOW THAT WE'RE LOOKING AT IT
AS AN AREA OF RESEARCH AND
DEVELOPMENT INTO HOW THE
EFFICIENCIES ARE DOING SO WELL,
AND COMPANIES ARE PUTTING GROUPS
IN TO STUDY HOW IT'S TAKING
PLACE THERE AND HOW THEY CAN
REPLICATE THAT IN THEIR OTHER
PLANTS AROUND THE WORLD.
THE STRONG DEVELOPMENTAL FOCUS,
NATIONALLY STRONG, INFORMAL
NETWORK LINKS...
THESE WOULD BE THE LINKS TYING
ABOUT WITH ALL THE DIFFERENT
COMPANIES, SO YOU WILL HAVE
I.C.T. GROUPS COMING TOGETHER,
YOU WILL HAVE PHARMA GROUPS
COMING TOGETHER, WHAT THEY WOULD
LOVE TO SEE TAKING PLACE, WHAT
IS TAKING PLACE, WHAT ARE THEIR
HINDRANCES AT ALL TIMES.
THESE NETWORKS ALSO TAKE IN THE
INTERNATIONAL UNIVERSITIES AS
WELL AS IRISH UNIVERSITIES AT
ALL TIMES.
THE SKILLS DEVELOPMENT, AGAIN
GOING BACK TO THE WYETH AND THE
INTEL EXAMPLES, CONTINUOUSLY
UPSCALING.
AND OF COURSE, THE SAME LEVEL.
WHEN YOU HAVE KIDS WHO ARE IN
JOBS WHO HAVE, YOU KNOW, TAKEN
TECHNICAL SKILLS, ONCE THEY GET
TO A CERTAIN LEVEL, THEY'RE
GOING TO WANT TO GO BACK TO
UNIVERSITY ANYHOW WHEN THEY SEE
WHAT'S AVAILABLE THERE, SO
YOU'LL FIND THAT AT LEAST A HUGE
AMOUNT OF PEOPLE AT UNIVERSITY
WORKING, ARE GOING TO UNIVERSITY
AT NIGHTTIME AS WELL TO GET
THEIR MASTERS, THEIR M.B.A.'S,
Ph.D.'S AND SO ON AND SO ON.
THE DEVELOPMENT OF THE
HIGH-TECH, HIGH-PRODUCTIVITY
TRADES-BASED F.D.I. IS SOMETHING
THAT WE CONTINUOUSLY STRIVE AT,
TO IMPROVE AND TO CHANGE WITH
THE TIMES.
WE'VE ALSO BEEN VERY LUCKY THAT
WHEN THE DOT-COM BOOM WAS GOING,
A LOT OF COMPANIES CAME IN, AND
THEY BUILT DATA CENTRES IN
IRELAND, SO WE'VE GOT A HUGE
AMOUNT OF DATA CENTRES.
THEN THE BUST CAME.
THEY ALL LEFT, BUT WE WERE LEFT
WITH AN INCREDIBLE
INFRASTRUCTURE.
SO IT WAS A TERRIBLE TIME FOR
18 MONTHS, BUT THEN WHEN
COMPANIES WANTED TO REINVEST AND
THEY WERE LOOKING WHERE IN
EUROPE THEY COULD HAVE, WE HAD
AN INCREDIBLE INFRASTRUCTURE
THEY COULD WALK RIGHT INTO, AND
THAT'S WHAT HAPPENED WITH A LOT
OF THE BIG COMPANIES.
WE GOT OUR GOOGLES AND THE
EBAYS, AND YOU NAME IT, THEY'RE
ALL THERE AT THIS STAGE.
AND THE AGILITY, THE CREATIVITY,
THE FLEXIBILITY AND THE CAN-DO
ATTITUDE IS A REASON THAT WE
CONTINUOUSLY HEAR FROM COMPANIES
ALL THE TIME OF WHY THEY KEEP
REINVESTING IN IRELAND IF
THEY'RE CHOOSING BETWEEN TWO
COUNTRIES.
IT REALLY IS DOWN TO...
AND THAT'S SOMETHING WE HAVE TO
TRY AND WORK ON, THAT THE
YOUNGER PEOPLE COMING OUT OF
COLLEGE DON'T TAKE IT FOR
GRANTED THAT THE JOBS WILL
ALWAYS BE THERE AND THAT THIS IS
WHAT LIFE IS ALWAYS ABOUT AND
THAT THERE'S NO WORK INVOLVED IN
IT.
YOU KNOW, IT'S BEEN...
AT THE MOMENT, THE PEOPLE WHO
ARE IN THESE JOBS HAVE SEEN HOW
TERRIBLE THE ECONOMY CAN BE AND
HOW TOUGH IT IS WHEN YOUR FAMILY
IS SPLIT UP ALL OVER THE WORLD
AND THERE ARE NO JOBS AT HOME,
AND THERE'S A HUNGER THERE THAT
MAINTAINS PEOPLE GOING THE EXTRA
MILE, SO IT'S REALLY TRYING TO
REMIND PEOPLE AT ALL TIMES THAT
IT IS ABSOLUTELY IMPORTANT TO GO
THE EXTRA MILE WITH ALL
COMPANIES AT ALL TIMES, AND IT
HAS REALLY WORKED IN OUR
BENEFIT.
HIGHER VALUE ACTIVITIES, ENTIRE
SKILLS, SO IT MEANS OUR
CONTINUOUS RE-EDUCATION AND
RE-SKILLING OF PEOPLE AT ALL
TIMES.
AND AGAIN, MORE SOPHISTICATED
COMPLEX JOBS, WHICH IS WHAT WE
ARE LOOKING FOR.
WE ARE NOT A LOCALIST LOCATION.
IT'S A VERY EXPENSIVE COUNTRY
NOW AT TIMES IN IRELAND TO LIVE
IN, SO WE DO NEED THE HIGHER
LEVEL JOBS AS WELL TO MAINTAIN
ALL THESE PEOPLE WHO DID COME
BACK TO THE COUNTRY AND TO STOP
PEOPLE MOVING OUT AGAIN.
AND AGAIN, I KNOW I KEEP
UNDERLINING IT, THE FLEXIBILITY
AND THE RESPONSIVENESS TO WORK
AND PROJECTS IN IRELAND AT ALL
TIMES.
THE R and D IN IRELAND, THE STRONG
GOVERNMENT COMMITMENT, NOT ONLY
DO WE HAVE SCIENCE FOUNDATION
IRELAND, EXCEPT THEY HAVE PUT IN
ABOUT FIVE BILLION DOLLARS,
CANADIAN DOLLARS, INTO RESEARCH
AND DEVELOPMENT.
THESE ARE THROUGH DIFFERENT
PROGRAMS.
WE HAVE THE P.R.T.L.I., WHICH IS
THE PROJECT FOR... RESEARCH AND
THIRD LEVEL INSTITUTIONS, WHICH
IS PURE RESEARCH ON INDIVIDUAL,
YOU KNOW, UNIVERSITY BASIS.
SCIENCE FOUNDATION IRELAND,
WHICH IS ON THE N.S.F. MODEL,
THAT LINKS THE UNIVERSITIES WITH
INDUSTRY, SO A LOT OF THESE
WOULD BE THE BELL LABS, I.B.M.,
WYETH, BRISTOL-MYERS SQUIBB,
WHERE THEY WILL BRING IN THEIR
OWN RESEARCHERS TO WORK WITH
RESEARCHERS IN THE UNIVERSITIES.
VERY OFTEN THE UNIVERSITIES ONLY
GET FUNDING IF THEY LINK UP WITH
OTHER UNIVERSITIES IN IRELAND AS
WELL SO THAT WE CAN CREATE LARGE
SERIOUS SIZABLE PROJECTS RATHER
THAN SMALL UNIVERSITIES AROUND
THE PLACE.
THE MED-TECH COMPANIES HAVE BEEN
VERY QUICK TO TAKE ADVANTAGE OF
THIS, WITH 50 percent OF THEM NOW
HAVING R and D RESPONSIBILITY HERE.
BELL LABS IS A 30 MILLION
PROJECT THAT THEY'VE PUT IN.
IT'S THE FIRST ONE THAT THEY'VE
PUT IN IN EUROPE AT THIS STAGE
TYPE OF PROJECTS.
AND THE WYETH, AS I SAID, THEY
JUST ANNOUNCED A NEW ONE DOWN IN
BIO 2005 IN PHILADELPHIA ON
TUESDAY, A FOUR-MILLION-DOLLAR
PROJECT THEY'RE PUTTING IN
THERE.
THE TAX TREATMENT FOR R and D,
EXEMPTION OF INCOME ON
(Unclear word)
CREATED IN
IRELAND, AGAIN, WE'RE LOOKING AT
WHAT YOU'RE DOING IN ONTARIO,
WHICH I THINK LEADS THE WAY FOR
R and D AND THE TYPE OF TAX
INCENTIVES THAT ARE AVAILABLE
HERE AND HOW WE CAN IMPLEMENT
THEM AND SOME SORT OF SIMILAR
PROJECT OR PROCESS INTO WHAT
WE'RE DOING IN IRELAND, BECAUSE
CERTAINLY FROM SPEAKING WITH
COMPANIES IN EUROPE AND IN THE
U.S., THEY REPEATEDLY TALK ABOUT
HOW ONTARIO IS DOING AND THAT
THEY'RE LOOKING TO MOVE UP HERE
TO TAKE ADVANTAGE OF WHAT'S
TAKING PLACE UP HERE AT THE
MOMENT... MY SISTER BEING ONE OF
THEM.
(Laughing)
CAN'T GET HER HOME.
(Chuckles)
VISION AND STRATEGY IS HIGHER
VALUE SKILLS, KNOWLEDGE-BASED,
INNOVATION PLACING IRELAND AT
THE GLOBAL LEADING EDGE OF
CLUSTERS AND NICHES.
THOSE NICHES AND CLUSTERS ARE
THE ONES THAT WE HAVE TALKED
ABOUT ALREADY, THE I.C.T. AND
BIOTECH REALLY BEING THE MAIN
TWO, AND INTERNATIONAL FINANCIAL
SERVICES.
MANUFACTURING, SERVICES AND
INNOVATION, THERE WILL ALWAYS BE
SOME MANUFACTURING IN IRELAND,
EXCEPT WE'RE LOOKING FOR THE
HIGH-LEVEL MANUFACTURING, OR IF
THE MANUFACTURE IS GOING ABROAD
THAT THE MANAGEMENT OF THAT
OPERATION TAKES PLACE IN
IRELAND.
WE HAD AN INTERESTING EXPERIENCE
THERE A FEW YEARS AGO WHERE WE
LOST OUT TO A PROJECT TO
SINGAPORE, BUT THEY HIRED A FULL
IRISH TEAM TO GO OVER AND SET UP
THE PROJECT IN SINGAPORE FOR
THEM.
(Chuckling)
WELL, IF THAT'S WHAT THEY WANT.
STRONG REGIONAL IMPACT AND
LINKAGES, THIS IS NOT JUST
WITHIN IRELAND BUT REGIONAL
LINKAGES AROUND THE WORLD.
WE HAVE, FOR EXAMPLE,
THE ATLANTIC CORRIDOR, WHICH
HOOKS UP THE UNIVERSITIES IN THE
WEST OF IRELAND WITH THE
EAST COAST OF THE U.S. AND ALSO
THROUGHOUT EUROPE AT TIMES.
DIFFERENTIATION, BECAUSE AS WE
SAID, WE CAN'T...
IT'S DIFFICULT TO BE THE LEADER
IN EVERY SINGLE AREA, OR HOW
WILL WE CHANGE, SINCE EVERYBODY
IS LOOKING AT ALL THESE AREAS.
AND IT IS
CONTINUOUSLY THE PERFORMANCE,
SPACE, SOPHISTICATION, QUALITY
OF THE OPERATING ENVIRONMENT,
THE EXPERTISE AND RESEARCH AND
THE FLEXIBILITY AND THE SPEED
AND THE AGILITY, THE SPEED BEING
A VERY SIGNIFICANT ONE AS WELL.
NOW FOR A LOT OF THE PHARMA
PLANTS THAT ARE COMING, WE ARE
ACTUALLY DOING PRE-APPROVED
F.D.A. SITES, SO GET THE FIRST
FEW AREAS IN PLACE, AND WHEN
THEY DO DECIDE TO COME UP, WE'VE
ALREADY GONE THROUGH AND DONE A
LOT OF THE WORK FOR THEM, SO IT
MIGHT TAKE A YEAR OUT OF THE
PROCESS OF HOW LONG IT WILL TAKE
THEM TO ACTUALLY SET UP AND GET
THEIR OPERATIONS MAKING A PROFIT
IN IRELAND.
THAT'S ONE WE'VE JUST REALLY
STARTED, AND WE'VE REALLY JUST
PUT THOSE TOGETHER IN THE LAST
SIX MONTHS, BUT EVEN PROJECTS
THAT STARTED, LIKE THE WYETH ONE
WOULD HAVE STARTED IN 2000.
THEY APPLIED FOR PLANNING
PERMISSION IN JULY, AND THEY
STARTED BUILDING IN SEPTEMBER.
YOU KNOW, IT CAN BE VERY QUICK
TURNAROUND IF NEEDS BE.
AGAIN, THAT'S ONE OF THE
ADVANTAGES OF BEING A SMALL
COUNTRY IS THE LACK OF RED TAPE,
THE EASE OF OPERATION, THE EASE
OF GETTING THINGS DONE AT ALL
TIMES.
SO THANK YOU VERY MUCH.
VERY INTERESTING TO SEE WHAT
YOU'RE DOING HERE AT THE MOMENT,
AND WE'RE ALWAYS LOOKING FOR
LINKAGES WITH CANADIAN
UNIVERSITIES AND CANADIAN
INDUSTRY AND HOPE THAT WAS OF
INTEREST TO YOU.

(Applause)

Watch: Samara McCarthy on Ireland's Burgeoning Economy