Friday 23 February 2018

JP Morgan warns of infrastructural constraints as Ireland seeks Brexit spoils

JP Morgan headquarters at Canary Wharf in London Photo: PA
JP Morgan headquarters at Canary Wharf in London Photo: PA
Dearbhail McDonald

Dearbhail McDonald

Banking giant JP Morgan has warned that Dublin’s “binding constraint”, as it seeks to entice financial services firms from London to the capital in the wake of Brexit, is its infrastructure, including housing, schools and transport.

James Kenny, JP Morgan’s head on investor services, was speaking to Financial Times this weekend as the bank – which already employs 500 people in Ireland – confirmed that it will hire a significant number of people in Ireland for its custody and fund services business over the next three years.

Earlier this year the Irish Independent reported that JP Morgan was considering moving hundreds of staff from London to Capital Dock, the 31,600 sq m (340,000 sq ft) office scheme currently being developed by Kennedy Wilson in Dublin's docklands.

The site could potentially house around 1,000 employees.

Mr Kenny told the Financial Times that JP Morgan’s impression is that some jobs can be “filled by people moving from other countries” because Ireland has a “very flexible immigration policy”.

“The binding constraint in Ireland isn’t really around the supply of qualified people; it’s around infrastructure — the infrastructure in the city, the supply of housing.....the capacity in the school system, the domestic transport infrastructure,” he said.

Confirmation of JP Morgan's post-Brexit move will be welcomed, coming as it does in the wake of the decision by two major insurance companies, Lloyd's of London and AIG, to choose Brussels and Luxembourg instead of Dublin for their respective European Union bases.

Prior to last June's referendum, J.P Morgan boss Jamie Dimon said as many as 4,000 employees could be relocated if Britain chose to leave.

Next month Bank of China will open its first Irish branch in Dublin.

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