Business Irish

Sunday 21 September 2014

Skill shortages and high costs could hurt Ireland's FDI

Published 25/07/2014 | 02:30

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Minister for Jobs, Richard Bruton. Photo credit: Justin Mac Innes/Mac Innes Photography/The Department of the Taoiseach via Getty Images
Minister for Jobs, Richard Bruton. Photo credit: Justin Mac Innes/Mac Innes Photography/The Department of the Taoiseach via Getty Images

SKILLS shortages, business costs and poor infrastructure in certain areas pose a threat to Ireland's attractiveness to foreign direct investment (FDI), a report has said.

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The study by accountants Grant Thornton concluded Ireland continues to outperform its competitors in attracting FDI.

But it warned more needs to be done to ensure it remains an attractive destination.

Jobs Minister Richard Bruton said it was important to determine the challenges that faced Ireland in the FDI sector.

"That is why my department will shortly publish our policy statement on FDI, and following on from that IDA Ireland will, over the coming months, develop a new strategy which will map out the future direction of FDI policy," Mr Bruton said.

Success

"In this way we will ensure that we build on the successes of recent years, react to changing circumstances, and continue 
to grow jobs in foreign companies in Ireland in the coming years."

The report pointed out that Ireland's corporate tax rate, the workforce and the country's economic recovery helped to boost its attractiveness to multinationals. But it warned there were issues that needed to be addressed such as skills shortages within the ICT, science and engineering sectors.

It also said that while the overall cost competitiveness has improved, the country continues to be an expensive place to do business when compared to some other EU destinations.

Irish Independent

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