Address bto the Irish Business Networking Event
Villa Spada, Rome, 7th February 2013
Thank you very much, Ambassador Hennessy, for your kind introduction.
I am delighted to be able to address this important trade development event celebrating the vibrant business and commercial links between Italy and Ireland. This lunch is a valuable opportunity to engage with influential business leaders and to increase awareness of Ireland’s recent positive economic performance.
It is fitting that we meet here today in the beautiful Villa Spada, which Giuseppe Garibaldi and his red shirts placed at the centre of Italian history in 1849 during Italy’s struggle for freedom; and which lies so close to the graves of the exiled O’Neill and O’Donnell families in San Pietro in Montorio. It reminds us of the difficult struggles both our countries endured to become masters of our own destiny and of the determination, courage and fortitude that we, as a people, share. Both of our countries also share a migratory tradition with large Italian and Irish communities to be found in various countries around the world where, invariably, they have made a major contribution to their hew homelands.
Ireland and Italy are now firm partners in Europe and Ireland currently holds the rotating Presidency of the European Union. This is Ireland’s 7th EU Presidency and our domestic challenges are closely aligned to those facing Europe as a whole. How do we restore jobs, growth and stability to a continent which has faced enormous challenges over the past four years? How do we recover from crisis and sustain that recovery in a just and cohesive way? How do we as Europeans rebuild and renew in an increasingly interconnected global environment?
With over 26 million people unemployed across the Union there are no grounds for complacency and the unemployment rate among young people is especially worrying. That is why the priorities of the Irish Presidency are so urgent and compelling – stability, jobs, growth. These are the issues that matter to our people: delivering on these will restore confidence in the European project. In our work ahead, we draw inspiration from the pioneers of Europe – including Altiero Spinelli whose early federalist vision was the inspiration for the evolving agenda towards an ever closer Union.
In Ireland, 2012 was a year of stabilisation and growth, albeit at a modest rate. The Irish Government has taken firm control of its public finances and is continuing the steady path back to fiscal stability. Our GDP growth last year is expected to come in at just under 1%, which is impressive given the challenges currently facing the wider European economy.
Ireland recognizes that employment creation is the major challenge of our times. The current unemployment rate, particularly among young people, is not sustainable and would have consequences far beyond the economic if not addressed. The difficult decisions taken by the Government have involved considerable economic pain for the Irish people. While the challenges are by no means over, our progress to date shows that, with hope and courage, we are working together to build a better future for our country – one grounded in prosperity but also sustainability and social cohesion.
Our slow but steady progress is starting to generate results. Foreign Direct Investment into Ireland was higher than ever in 2012, with 145 new projects creating nearly 13,000 new jobs. Over 40% of these were new companies investing in Ireland for the very first time. Indigenous companies supported by Enterprise Ireland increased employment by approximately 4,000 jobs in 2012 – the highest net gain for Irish companies in six years.
There has never been a better time to invest in Ireland. Dublin was recently ranked as the best city in the world for human capital. 50% of the Irish population is under 35 years of age and, according to independent international benchmarking studies, we are first in the world for availability of skilled labour. Our Government’s strategy has now positioned Ireland as the Internet Capital of Europe with a strong emphasis on promoting games and technology investment.
The Irish Government is committed to maintaining Ireland’s 12.5% rate of Corporation Tax. Our cost competitiveness has improved significantly; unit labour costs have fallen, as have business services and property costs.
Europe represents 26% of inward investment to Ireland every year. Italy has played an important part in this success story and we continue to welcome Italian investment from world leading companies such as Bulgari, Luxxotica, Diasorin, Fideuram, and Recordati. I am delighted to see some of those companies represented here today. Through the work of IDA Ireland in Europe we will continue to build these strong relationships for the future.
It has been very encouraging to see Irish-Italian trade increasing steadily over the past number of years. Italy is Ireland’s 9th largest merchandise trading partner. Total trade exceeded €10.8billion Euro in 2011, with a diverse range of products and services being traded between our two countries.
Underpinning this relationship, we have a vibrant enterprise sector in Ireland; one that is anchored by our rapidly evolving and highly regarded scientific, technological and innovation base. We also have a strong entrepreneurial culture aided by a robust business support system. In terms of the investments made, the Irish Government is now the largest provider of venture capital in Europe and Ireland is the perfect location for overseas entrepreneurs to create innovative start-ups.
As the fifth most important market for Irish-owned companies, Italy is a significant and rewarding catchment for our exporters. For instance, Irish companies increased exports of medical devices to Italy by over 60% in the past five years; exports from the life sciences sector are up 38% over the same period; and there has been an increase of nearly 50% in the number of Irish companies with a direct presence in the Italian market. I am delighted to be meeting today representatives of many of the Italian companies doing business with Ireland.
When talking of Irish business success, particularly before lunch, the renowned quality our food and drink comes immediately to mind. A famous soccer manager in England once said that football was not a matter of life and death – it was much more important than that. In Italy, your love and appreciation of food matches, if not surpasses, the priority you attach to football.
Our national food promotion agency, Bord Bia, has done wonderful work in promoting Ireland’s produce in a very discerning market. Last year, food and drink exports from Ireland rose by 2%, exceeding €9 billion for the first time. Total exports of Irish food and drink to Italy were worth around €380 million – mainly comprising beef, seafood, dairy products and beverages.
Tourism is crucial for Ireland. About 180,000 people are employed in the tourism sector, looking after over 7 million visitors annually and generating an estimated €5 billion in revenue each year. Italy is an important market for tourism to the island of Ireland. Tourism Ireland has estimated visitor numbers for 2012 to have reached about 250,000 visitors, making Italy our 3rd largest continental European market. We are well connected, with direct flights from nine key Italian cities to Dublin, Cork, Belfast and Knock in the West of Ireland.
2013 is a particularly exciting year for Irish tourism; a year when we will see our Government’s biggest ever tourism initiative, the Gathering, come to fruition. We in Ireland have been a diasporic people for a great part of our history. The Gathering celebrates our many friends, family and connections overseas, inviting them to join us in a year-long celebration of all that is great about our country. Promoted overseas by Tourism Ireland, the Gathering aims to engage the interest and imagination of the estimated 71 million Irish diaspora around the globe. If you are not already planning to go, I would urge you to visit Ireland this year and enjoy a vibrant programme of events and festivals that will celebrate the best of Irish culture, arts, science, creativity, music, heritage and people.
Ireland is also an appealing destination for studying English as a foreign language. We have excellent schools and a safe, welcoming environment. Italy is a key source of study holidays to Ireland, with an estimated 37,000 Italian students visiting last year. Their presence in communities across Ireland adds considerably to the colour and gaiety of our summers.
As I mentioned earlier, both Ireland and Italy have good reasons to be proud of our respective communities across the Diaspora. The Irish community around the world is one of our strongest assets. I know that the Ambassador and his diplomatic colleagues are working with our Diaspora and the Global Irish Network to build a new strategic relationship that will bring practical benefits to the Irish at home and abroad. In this context, I am particularly pleased to acknowledge the great contributions of Hugh O’Donnell and Gearoid Faherty, guests here today, to the Global Irish Network.
Both of our countries share a great love of art, culture and creativity in general. Italy is synonymous with the artistic genius that ignited the Renaissance. This tradition of excellence in the fine arts has evolved over the centuries and its creative legacy has, for instance, found expression in the success of contemporary Italian film and fashion. Similarly in Ireland, the quality of our films, theatre, literature and music have enriched the texture of our lives and greatly enhanced the international reputation of the country – not least through the award of four Nobel prizes for literature to Irish writers.
As a former Minister for Culture, I passionately believe in the transformational potential of all creative endeavours: first, as a means of simply giving more depth and meaning to our everyday lives; second, as a very effective vehicle for improving the international profile of one’s country; and third, and by no means least, as a very productive agent of employment creation. Across the spectrum of activity – from fine arts to theatre to computer gaming – the creative industries are a major generator of employment and have the potential to create and sustain many more jobs.
I am very conscious that creativity and innovation are also vital elements in the world of business. This is a valuable opportunity for me to engage with business influencers and decision makers. Many of you have created and shaped outstanding business relationships between your companies and Ireland’s leading enterprises. We know you have the world to choose from when seeking partners in innovation. We’re proud that many of you turned to Ireland and Irish companies when making those critical business decisions. I thank you for so doing. We are confident that Ireland will continue to serve as a source of innovative products and services that sharpen your competitive edge and advance your success in this competitive global environment.
Thank you.