The Irish Development Agency IDA

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The Irish Development Agency (IDA)

• Welcome
• Orange Plc.
• To Ireland

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Orange Plc.
Our Vision is to create a future in which
anything is possible.
A future where you can access all the people,
information and entertainment you need, in your
personal and business life, wherever, whenever
and however you wish...to give you complete
freedom in our wirefree world.
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Porters Diamond of Competitive Advantage
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IDA - Introduction

• Set-up to secure new and expand existing
  investment from overseas companies in Ireland
• A network of IDA offices exists worldwide in
  Europe (Germany and the Netherlands), the USA,
  Japan and South-East Asia
• IDA fosters the national objective of regional
  industrial investment

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Corporation Tax Rates

• Lower than West European and USA rates
• Double tax agreement with UK and other countries
  thus companies not taxed twice
• If main planning and design work for patents
  carried out in Ireland then exempt from tax on
  royalties
• Expenditure on scientific research may be claimed
  against profit in the year it occurred

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Corporation Tax Rates

• Even at full rate of 24 tax is still lower than
  USA and main European countries
• Only profits generated by the Irish branch or
  agency are taxed
• If from Ireland or UK, executives working in
  Ireland are only taxed on the amount earned in
  Ireland
• No local council taxation

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Corporation Tax Rates
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Irish Law and Business

• Domestic law based on EU requirements
• Little bureaucracy - legal procedures are
  uncomplicated, inexpensive and quick
• All companies must keep proper accounts
  registered annually with the Registrar of
  Companies
• Legal system designed to facilitate the flow of
  foreign investment to Ireland

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Foreign Investment Grants

• Grants available in four different forms to aid
  initial start-up costs
• - Capital Grants
• - Employment Grants
• - Training Grants
• - Research and Development Grants
  

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RD Grants

• Grants available for
• Costs - expenditure on the provision of sites,
  premises, plant and equipment to set up
  facilities, wages and salaries, materials and
  consultancy fees
• Feasibility studies
• Technology acquisition

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Return on Investment
How investors in Ireland achieve a uniquely high
ROI
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Increase in profit required to achieve the same
distributable income available in Ireland
Fiscal Incentives
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Irelands History
High Growth in economy - Celtic Tiger
The Future lies in moving up the Value Chain
innovators
Economic growth/ accumulated manufacturing
know-how
Systems suppliers
Progress
Component suppliers
Commodity suppliers
Time
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Irelands History
Future requires a knowledge driven society
supported by high levels of RD
Goal to create an environment and
infrastructure for RD in Ireland
Irish Government earmarks 1.95 billion for
research technology and innovation (RTI) 2000-2006
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Technology Foresight
Establishment of Science Foundation by ForFas in
2000 650 million to be invested in basic
research in ICT and Biotechnology from 2001 -
2006.
Ireland to compete at the highest level in
rapidly changing global environment
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Technology Foresight
56 million made available to 12 research
projects of outstanding calibre in 2001
Projects announced July 2001 to include - -
Optimising Scarce resources of Broadband
communications networks - Investigation of
magnetic properties in relation to increased
storage demands of I.T. - Increasing the
bandwidth of photonic devices to enable
communication of larger quantities of information.
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Comments
Quickly building Irelands research strength in
ICT ... combined with new e-commerce legislation,
new fibre optic cable links ..., identifies
Ireland as one of the worlds choice locations
for knowledge-age enterprise.
(Dr. Ed Walsh President Emeritus, UL)
I firmly believe that this investment will be a
catalyst for making Ireland one of the most
attractive locations in the world in which
companies would carry out their research
activities. (Brian
Sweeney, Chairman, Siemens Group Ireland
This new programme will establish world class
research in certain key technologies in order to
underpin future industrial competitiveness and so
lift out economy to greater levels of
self-reliance, sophistication and prosperity.
(Professor David McConnell,
Trinity College Dublin)
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Existing Industrial Base
Information and communications technologies (ICT)
sector grew by over 12 during 2000.
Intel Fab 24 - 2 billion Lucent Technologies -
150 million IBM- 100 million
Other companies include - 3Com , ICL
Information Technology Centre etc.
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The Future of RD
Next Generation Internet and I2 to aid RD
and enable Collaboration.
Research in Ireland is entering a new vibrant
phase. (www.sfi.ie) Mr Noel Treacy TD Minister
of Science Technology and Commerce
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Transport System

• Road and rail networks upgraded- creating a
  industrial and commercial environment.
• Plans for light rail system in Dublin, in
  addition to Dart.
• Plans for investment in transport infrastructure.
• Dublin is well connected by air- e.g. 65 flights
  daily to London.

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Education
The educational system meets the needs of a
competitive economy

• Government invests 13 of its budget in
  education.
• Ireland produces gt 34,000 graduates annually. 57
  graduate with qualifications in Computer Science,
  Engineering, Business Studies and Science.

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Health

• Medical services in ROI are rapidly becoming more
  decentralised.
• Increased investment in day hospitals,
  rehabilitation, and convalescence facilities.
• Visa legislation has recently been amended to
  allow nurses from the Philippines to work on two
  year contracts.

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Housing

• Vast areas of affordable housing are currently
  being constructed around Dublins hinterland.
• Abundance of apartments on the market in Dublin,
  Cork and Galway,for sale and rental which offers
  a more affordable option.

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Economy

• Irelands GDP growth was 7.8 in 2001, comparing
  favourably with other global economies e.g. UK
  2.5, US 1.7
• Introduction of sympathetic tax incentives-
  Middle tax band (gt IR 17,000) has fallen from
  48 to 42, IR 11,000 tax free.
• Inflation is comparable to many other European
  countries, Ireland 4.6 Netherlands 5.6, Portugal
  3.8.

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Demographics

• Population of 3.8 million.
• 40 of population under 25 years old.
• Median age in Ireland is around 30, generally
  closer to 40 in most European countries.
• High net migration, 20,000 in 2000 will ensure
  labour availability in the future

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Labour Market

• Unemployment decreased from 4.3 to 3.9
  (2000-2001)
• Unemployment is currently half that of most
  European countries.
• National agreements on wages ensure low wage
  inflation.
• Good relations between management and trade
  unions.
• Low cost, relative high skill environment.

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Utilities

• Industrial demand for electricity can be met at
  competitive prices e.g. Ireland 5.26, Spain 5.59
  (p/kw/hr).
• Low water costs 50p per cubic metre, Germany
  148p.
• Competitive prices for factory and office
  facilities Dublin 51.19 /sqft, London
  103.35/sqft.

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Telecommunications Structure

• 5 billion investment- state of the art optical
  networks, unlimited bandwidth.
• Telecoms market deregulated in 1998, 20 companies
  compete- value added services.
• Some major players include, Eircom, BT/Esat
  telecom, Cable and Wireless and Colt.

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RD Infrastructure

• Development of Technology Parks based on Silicon
  Valley.
• Creation of FORFAS- advisory body responsible for
  technological, scientific and industrial
  programs.
• Examples are the Plassy Technology Park in
  Limerick. (High technology product development).

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Irelands Advantages

• Ireland is an extremely attractive location to
  set up an RD facility for Orange
• Government provides
• Low tax environment
• Excellent grant structure
• Low capital costs
• High level of government focus on RD
• Legislation is geared towards attracting foreign
  investment

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Irelands Advantages

• Ireland offers
• An excellent labour market with high level
  graduates in Business, Computers and Engineering
• Excellent labour relations
• A low cost, high skill workforce
• Many multinational corporations have chosen to
  site here.
• Ireland is rated 7th in world competitiveness
  (IMD).

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Why Ireland?

• Remember your futures bright, your futures in
  Ireland.

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