|
 |
You are > Home > Playing catch-up but infrastructure will help with foreign investment
|
Tuesday, March 09, 2010
Playing catch-up but infrastructure will help with foreign investment
By Mary Ellen Breen
WATERFORD and the whole of the South East faces a challenge to create and retain foreign investment, which will boost the prosperity of the economy.
According to Dan Hoey, Chairman of the American Chamber of Commerce South East Region, many multinational companies are attracted to the South East because of its close proximity to Dublin, with improved access to Waterford expected to help the South East city.
“The completion of the Waterford bypass and the new bridge has made a significant difference to those living and doing business in Waterford and Dublin. The Waterford road will be greatly improved when the new motorway opens. The continued development of Waterford Airport will also help improve access into the region, which is vital for all companies trading with our UK and European neighbours.”
Despite recent improvements, he said Ireland was still playing “catch-up” in terms of its competitiveness.
“The economic difficulties of the past 18 months have led to some cost adjustments, particularly in salary and labour costs, which are to be welcomed. However, we still have a distance to go. At a minimum we need to align our salary and wage structures to the EU norms and I would anticipate further pay restraint as we seek to secure jobs and investment in difficult economic circumstances. Ireland is experiencing deflation and it is unrealistic to expect pay increases at the levels achieved during the boom times.”
Mr. Hoey said it was critical that once the economy returns to growth we do not see our costs return to unsustainable levels.
“The danger is that the current realignment in costs is recession driven. We need to ensure that these cost improvements are structural and will be maintained when the economy returns to growth. We cannot allow a situation to develop again where our costs are out of line with our international competitors.”
He said a particular challenge facing Ireland, and the South East in particular, was the availability of talent with the skills required for the 21st century.
“According to a recent Forfás report, the South-East region has more people without a leaving cert level qualification than almost any other region in the country, with the exception of the border region, and one of the lowest levels of third-level educational attainment in the country. That is not a good metric and I would be concerned that we are looking at a serious skills deficit in the medium term, which will impact on future investment.”
While the potential for the region was great, he said we must focus our efforts to realise it fully.
“The South East Region has much to offer foreign direct investors, including an excellent quality of life, which is becoming increasingly important for people wishing to escape the pressures of the greater Dublin area. As a region we need to re-focus our efforts on ensuring we have the competitive offering which will continue to attract and build FDI investment into the South East.”
Main News Page |
Previous Page
|
|
|
|
