Irish Prime Minister Simon Harris has emphasized the need to address housing shortages and invest in infrastructure to maintain Ireland’s competitiveness in attracting foreign investment. At a US-Ireland summit, Harris highlighted the importance of cutting through bureaucracy to deliver infrastructure efficiently, as the country faces increased competition from other EU nations and Asia for technology and pharmaceutical companies.
A chronic shortage of housing in Dublin, where many tech firms are based, has added pressure on the government. Ireland also lacks a metro system, and underinvestment in public transport further hampers its infrastructure. Harris stressed the importance of overcoming these infrastructural deficits to avoid dragging down Ireland’s competitiveness.
Elaine Murphy, president of the American Chamber of Commerce, welcomed Harris’s pledge on infrastructure but noted that US companies are closely watching for action. Meanwhile, Allan Mulrooney of the Western Development Commission emphasized the urgent need for investment in energy and transportation infrastructure in western Ireland.
Given Ireland’s transformation into a global economic player over the past four decades, with a record corporate tax take expected this year, there is a need to diversify to protect the economy and public finances. Despite the recent European Court of Justice ruling affecting Apple’s tax payments, IDA Ireland’s Michael Lohan stated that there is no indication of capital flight risk. He noted that the competition for foreign direct investment is intensifying, and countries like France and Germany are already targeting key sectors.
Harris highlighted the importance of industrial policy alongside tax incentives, with a focus on growing the semiconductor industry in Ireland. The government’s emphasis on addressing infrastructure and housing challenges is crucial for ensuring Ireland’s continued attractiveness to foreign investors and maintaining its competitiveness in the global market.
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