Monday 17 June 2019

Lane urges action to deal with over-reliance on multinationals

Outgoing Central Bank Governor Philip Lane.
Photo: Bloomberg
Outgoing Central Bank Governor Philip Lane. Photo: Bloomberg
Gavin McLoughlin

Gavin McLoughlin

Concerns about Ireland being too reliant on multinationals "need to be addressed" according to outgoing Central Bank governor Philip Lane.

Having a large amount of foreign companies can create problems for indigenous business through "crowding out", whereby it becomes difficult for smaller firms to compete for labour.

"In terms of crowding out other activities, in terms of over-concentration and so on, those are concerns that need to be addressed," Mr Lane, who will shortly become ECB chief economist, told the Oireachtas Finance Committee.

"Some of the ways you would address those would be to make sure there are supports, there is training and so on, to make sure that other sectors of the economy can operate.

"The Government has to be very alive to recognising the implications of rapid expansion in any of these international sectors," he added.

Irish Independent

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