Minister Billy Kelleher opens CEIA’s Conference on Merging Technology, Regulation and Business in Cork

Mr Billy Kelleher TD, Minister for Labour Affairs today (October 21^st, 2008) opened the CEIA’s (Cork Electronics Industry Association) Conference on Semiconductor, Hardware and Software Systems Directions entitled “Merging Technology, Regulation and Business, the way forward” in Cork.

Minister Kelleher said that “the transformation of the Irish economy has been greatly influenced by the scale and quality of ICT related multinational investments over the last number of years. The ICT sector has played a hugely significant role in the development of Ireland and as the location of choice for foreign direct investment in many ways. This sector employs some 80,000 people, contributes around €30 billion to the Irish economy on an annual basis in wages & salaries, services and corporate tax and represents 43% of exports, estimated at €46 billion.”

The Minister continued by saying that the “IDA’s ICT portfolio now spans the entire ICT industry from semiconductor design and advanced manufacturing, to telecommunications software to IT Services from many of the world’s leading companies and thought-leaders.”

Minister Kelleher stated “since 2006, we have seen significant wins across the sector with no fewer than 43 different projects approved. The projects are spread across the country and with overall investment volumes doubled from 2006 to 2007 yielding an employment growth potential of 3,688 jobs. The capital investment over this period was in the region of circa €700 million while RD&I investments were in excess of €217 million.”

“An example of these significant wins is in software with IBM’s decision to locate its EMEA Cloud Computing Research and Services Centre. In Telecommunications, Avaya will leverage its market leadership in IP Telephony and Contact Centre applications to enter a new market space called Communications for Business Applications. Also Cork has had some significant announcements in this area with Cognex expanding its international manufacturing and distribution centre, EMC investing €20m R&D in software development and Arris investing €4.5m in strategic R&D,” Minister Kelleher added.

The quality of these and other new investments from global companies in Ireland reflects the continuous transformation of the industry and the development of the operating environment in Ireland. Ireland is now an advanced economy with a cost base and living standards comparable to some of the wealthiest nations in the world. The Minister said “we must compete against these developed economies as well as many emerging economies as a location of choice for FDI.”

The Minister continued in terms of meeting the challenges ahead for all companies with operations in Ireland “ I would like to refer to some specific recent Government initiatives. Firstly, the recently published report of the High Level Group on Manufacturing contains 26 recommendations relevant to the Manufacturing sector and covers issues such as skills, costs, innovation, R&D and productivity. Also, my Department has recently established a high level ‘clearing house’ on the ICT sector This Group, which includes ICT Ireland and its members, will ensure that issues of particular concern and impacting on the sector are kept to the forefront and raised across the system as they arise.”

Minister Kelleher went on to mention last weeks budget “the increased investment in science, technology and innovation announced reaffirms the Government’s commitment to support the knowledge-driven economy, even in these difficult times. Capital funding for Science, Technology and Innovation programmes in 2009 will increase by €10.4 million, or 3.5%, compared to 2008, reflecting the importance of this priority for the Government. This level of support sends a clear signal to Irish business that the Government is continuing to support your efforts to develop new products, to stay competitive and win new markets.”

“The enhancements to the tax credits for Research and Development announced by the Minister for Finance are also a sign of the Government’s commitment in this area. The R&D tax credit which can be offset against a company’s corporation tax liability has been increased from 20% to 25%. This measure will enhance our competitiveness as a location for new internationally mobile research-related investment, and also encourage existing overseas and indigenous firms to add research functions to their operations in Ireland or to increase their level of research activity.”

ENDS/LA299