REMARKS BY THE PRESIDENT OF IRELAND, MARY MCALEESE TO THE IRISH BUSINESS CLUB, FINLAND
REMARKS BY THE PRESIDENT OF IRELAND, MARY MCALEESE TO THE IRISH BUSINESS CLUB, FINLAND WEDNESDAY, 23RD MAY 2001
Ladies and Gentlemen, Distinguished Guests.
I am delighted to be here this morning and to have the opportunity to address this distinguished gathering. It’s now over a decade since this Business Club was established, and I suspect it’s no coincidence that in those intervening years, business links between our two countries have increased substantially. There are now 10 Finnish companies in Ireland which together employ 1,300 people and while Irish investment in Finland is not as high as we would like, the continued strength of the Irish economy will, I am sure, lead to a greater number of Irish companies establishing a presence here in the years ahead.
There is considerable scope therefore on both sides, to build on the links that we have already established, and to seek out new opportunities and partnerships for future development. In order to do so, it is important that we understand each other’s perspectives, stories, histories and mindsets, for even the most hard-edged, commercially-driven business relations must ultimately be built on an understanding of the way in which we each view the world, our different priorities, values and outlooks. Occasions like this, which foster that human dimension and build up understanding and friendships, are therefore of great importance and I would like to thank your Chairman, Mr Toivanen, for the opportunity to tell you something this morning of the new Ireland that has been crafted in recent years, which has brought a new prosperity and self-confidence to our people.
Some of you will already be familiar with aspects of that story, from personal experience or from what you have heard and read. Ireland has been very much a good-news story in recent times for having one of the most vibrant economies in the world, with a performance unmatched among industrialised countries. The increase in our GDP reflects this perhaps better than any other statistic. Since the 1980s, GDP per capita in Ireland has risen from less than two thirds of the EU average to surpass the EU average today.
This rate of economic development has been made possible by important structural changes in the Irish economy and, indeed, in society itself. In 1973, before we joined the European Economic Community as it then was - our economy was to a large extent a rural, agricultural-based one. Today, although agriculture is still a vital sector, our economy is based in the main on high-technology industries, notably software, and the provision of high-quality services. Indeed in many ways, Ireland and Finland’s industrial activity is now complementary, especially in relation to the electronic sector where many partnership opportunities now exist.
There are a number of reasons for Ireland’s economic transformation, and I would like to touch briefly on some of the most important of these:
A vital factor in our economic success has been our longstanding commitment to excellence in education. The proportion of 25-34 year olds in Ireland with higher education qualifications is the second highest in Europe. In the past ten years, the number of full-time students in third level education has increased by almost 80%, while the number of full-time students in technical and technological institutions has more than doubled. Education alone is not, of course, a guarantor of economic success. But high standards of education, allied to the opportunities offered in a stable international trading environment, can and have been a powerful driving force for success at home and abroad. And international trade has provided the spur for our outstanding export performance of recent years. Openness to trade has helped transform Irish companies into being more competitive, innovative and flexible players on the international scene, and creators of wealth and opportunities for our people.
As an exporter, Ireland is now rated about third in the world, on a per capita basis. In fact our per capita exports are more than six times those of the US and three times those of Britain. Given our population of under four million people, the fact that Ireland is now, in absolute terms, the 21st largest exporter in the world is a fairly remarkable achievement, but one which you in Finland know from your own experience is surprising only to those who cling to obsolete notions that size means everything. Both our countries, by contrast, have experienced the transformation that is wrought when the full potential of a people is liberated through education, self-belief and opportunities which are used well.
Ireland’s long-term success in attracting foreign investment has also been a key factor in our economic success. A conscious decision to attract what we perceived in the early 1970's to be the most important industries for the future - information technology and pharmaceutical and chemical products - has paid enormous dividends. Ireland is the destination for around 10% of all US manufacturing investment in the EU, while our economy accounts for only 1% of EU GDP.
But at least as important as the investment has been how we as a country have been able to avail ourselves of the opportunities which outside investment has presented. It has helped to enrich the pool of management and business skills in Ireland. The demands of multinational corporations on managers to live up to the highest international standards have helped to instil a culture of excellence in management in Ireland. Our business leaders have learned the skills needed to survive and prosper in a competitive world economy. And as managers have in many cases moved from foreign-owned to Irish owned firms, and have established their own businesses, we as a country have gained enormously.
Another factor in our recent success has been the innovative approach we have taken to social partnership. For over a decade now, Government, employers, farmers and trade unions have negotiated a series of agreements which have provided a stable and predictable environment in which to transact business. These have enabled businesses to make long-terms plans, secure in the knowledge that they would not face unexpected wage or tax demands. Workers in turn have benefited from lower levels of taxation. The social partnership approach has also helped to lower our unemployment rate to below four percent, down from almost sixteen percent in 1993. This achievement is even more impressive when you consider that the overall labour force has risen by twenty percent in the same period.
Perhaps the single most important contributor to our recent economic success, however, has been our membership of the European Union. When we joined the EU - or the EEC as it then was - we had, as I have mentioned, a largely agrarian, uncompetitive economy. Our infrastructure was seriously deficient and, if I am to be honest, I should say that with some notable exceptions, our industry was not in a position to compete effectively on international markets.
Today however, we have a highly efficient economy, based on modern industries and high quality services. This process of transformation would have been almost impossible without the EU. We received significant levels of funding to upgrade our infrastructure and, perhaps more importantly, our determination to optimise the impact of those funds, encouraged us to develop the discipline and strategic, longer-term planning needed to continue our development. Now we are moving, with some pride, from our position as a net beneficiary of European funding to a new position as a net contributor of funds. This move is happening at a crucial time in European history.
The forthcoming enlargement of the European Union will present us all, new and existing members alike, with enormous opportunities for economic growth and improved political stability on our continent. For many of the candidate countries, enlargement represents the fulfilment of their dreams of becoming equal and free members of the European family after so many years of hardship and oppression. They have as much a right to membership of the EU as Finland and Ireland have. Their preparations and reforms in advance of membership are most impressive and show us their real potential. The candidate countries, as full EU members, will individually contribute their own special expertise and strengths to the Union. And, as we have seen with all past enlargements, the new members will add to the dynamic for economic growth, for cultural diversity, for political sensitivity and healthy, focussed development for all.
As part of this developing relationship we look forward to even more interaction between our two countries. There is considerable scope for bilateral trade to increase between us, not least in relation to tourism. We are delighted to welcome around 17,000 Finnish visitors to Ireland each year, and with Ireland having become something of Europe’s Golf Mecca - with a golf course for every day of the year and then a few extra – along with our beautiful scenery, rich culture and many outdoor activities, I am sure this positive trend will continue. Indeed the fact that there are now six flights daily between Ireland and Finland, courtesy of Finnair and SAS, is evidence of the growing links between us.
I am very pleased to be a first-time visitor to this intriguing and beautiful country. And of course it is also a great time to visit Ireland, whether for business or pleasure and to experience at first hand the dynamism which I have spoken of this morning. We look forward to welcoming many of you, as first-time visitors or seasoned campaigners, in the near future.
Ladies and gentlemen, I’d like to thank you once again for this opportunity to speak with you this morning. I hope the future will see many of you forging new partnerships and networks of mutual support in the future between our two peoples. Thank you.