On 3 November IBEC will host a major conference for CEOs in the new National Convention Centre, Dublin. The conference is a showcase event that will gather Ireland's top CEOs to send a unified message to international investors and commentators that Ireland remains a strong location for business.

This interactive event will feature Irish business leaders discussing their experiences in overcoming the challenges of the past two years and their insights into future growth opportunities. John Kay from the Financial Times will share his thoughts on how Irish business will ultimately drive economic recovery and IBEC director general Danny McCoy will present information from a new in-depth survey on Irish companies' productivity.

The conference is organised around a mix of keynote addresses, panel sessions and interactive interviews, focusing on three main themes:

-       scale and scope of Irish business

-       competitive adjustment and adaptation

-       future opportunities and growth

The past two years have produced unprecedented challenges for Irish business. It is without doubt that our international reputation was damaged by this. It is essential that we now inform international commentators and multinational companies that a number of key steps to recovery have been taken and we are now in the position to move forward. Ireland’s fundamentals remain. We have an advanced infrastructure built over the past 15 years, our talent pool is unchanged, our education system has enormous strengths and our cost base has improved considerably. We have adapted to change, shown resilience in our response to challenges and we are now back in business.

Book now to attend the key event in this year’s business calendar.

A new report from IBEC, Ireland as a place to do business, sets out the major adjustments that have taken place in the Irish economy over the past two years. These adjustments confirm that Ireland once again is becoming a favoured location for foreign direct investment (FDI), a fact borne out by the IDA's recent mid-year review. IBEC also stressed the need for measures to boost the domestic economy in order to avoid the risk of a two-speed recovery, with a thriving export sector but sluggish domestic demand.

We invite IBEC members to make use of the report and the accompanying PowerPoint in their communications internationally, for instance with HQs and customers.

Key points made in the report include:

• the Irish labour force is among the best educated in the world
• Ireland is ranked third in Europe by the World Bank in terms of ease of doing business
• in the 2010 IMD World Competitiveness Yearbook, Ireland was ranked fourth in the world in terms of availability of skilled labour and openness to new ideas
• the European Commission forecasts that the cumulative fall in Irish unit labour costs will be 9% in the period 2008-2011
• Ireland’s decisive and credible action in curbing its deficit and the flexible reaction of the labour market have been recognised by international markets.

IBEC director Brendan Butler said: "The adjustments, while painful, were absolutely essential to protect the Irish economy. The focus over the past two years on increasing productivity and cutting costs has helped companies restore some of the competitiveness lost in the preceding years. Although there is still some way to go, we have made significant strides. We need to build on this success."

Speaking about the need to boost activity in the domestic economy, Mr Butler said: "Improving international demand and the weakening of the euro in recent months have provided positive environment for Ireland’s export sector. The domestic economy, however, remains weak and this must become a priority for Government.

"Government needs to put in place a well-targeted public capital investment programme and ensure that any changes to the tax system promote consumer confidence and encourage a return to more normal spending and saving patterns. Business is concerned that Government will not meet its targets for public capital investment this year. While current government expenditure is running marginally ahead of planned, capital investment is a substantial 25% behind target. It is vital that Government remains committed to its own capital investment targets."

IBEC attended a meeting of the Joint Oireachtas Committee on Enterprise, Trade and Employment on 20 July to discuss our current position on the national minimum wage.

In updating the committee on the current challenges facing Irish businesses, we noted that although the economy has technically exited recession, business conditions remain particularly difficult for those firms operating in the domestic sector. The value of output in the domestic economy is down by one quarter over the course of the crisis and the adjustment in costs has not been proportionate to this.

IBEC stressed to the committee that the primary policy priority for Government and all other stakeholders in the Irish economy must be to address the unemployment crisis. We argued that the price of labour has a big impact on how much of it employers can afford to buy and that a high minimum wage would be an obstacle in addressing the unemployment problem.

Ireland’s minimum wage remains about 30% above the EU-15 average and some 20% above that in our nearest competitor, the UK. It is therefore a significant part of Ireland’s overall competitiveness challenge. Other regulated wages such as the Joint Labour Committee rates also present a major competitiveness challenge for employers and some of these rates are up to 60% higher than UK equivalent rates.

In our submission to the committee we stressed the need for an up-to-date independent impact assessment of the minimum wage on Irish businesses in the current economic climate. Without such a study it is impossible to accurately determine the impact which the minimum wage has on employment and unemployment levels in the economy.

Inability to raise prices; falling turnover and ongoing competitiveness challenges all mean that the minimum wage presents a major threat to employment in labour intensive sectors of the domestic economy in particular.

For further information on IBEC’s submission contact Fergal O’Brien at fergal.obrien@ibec.ie.

The results of IBEC’s latest Business Sentiment Survey show that business confidence strengthened in Q2 for the third consecutive quarter, but recovery is stronger in the exporting sectors than in the domestic economy.

Commenting on the data, IBEC senior economist Fergal O'Brien said: “The results, together with the latest national accounts data, point to the two-speed nature of the recovery.

“The survey asked companies about their confidence in both the overall business environment and their own business. Like in previous quarters, companies were considerably less negative about their own business than the overall environment. This is not surprising given the ongoing uncertainty around the economy, but is a positive indicator for real activity in the economy. The confidence indicator for managers' own businesses improved by 6 percentage points, from -16 in Q1 to -10 in Q2, suggesting that companies are getting close to stabilisation.

“The exporting sectors rebounded strongly in the first half of the year, but companies operating mainly in the domestic sector are facing a much tougher environment. Companies’ expectations on export sales have now been positive for five consecutive quarters, but, disappointingly, expectations on domestic sales dipped back into negative territory in Q2, having briefly turned positive in Q1.

“The continued weakness in the indigenous sectors of the Irish economy highlights the need for Government initiatives to underpin domestic demand. This should be done through a well targeted public capital investment programme and an approach to the fiscal adjustment process that promotes consumer confidence and encourages a return to more normal spending and saving patterns,” concluded Mr O’Brien.

We also invite IBEC members in the manufacturing and wholesale distribution sectors to participate in our national survey on pay.

The publication of the National Pensions Framework in March of this year raises significant issues for all employers, whether they operate defined benefit or defined contribution schemes, or no schemes at all.

IBEC has welcomed some aspects of the framework but expressed concern and opposition to others. We are currently conducting a CEO pensions survey to inform us of members’ views on the pensions framework and gauge the level and extent of employer pension provision. Make your views heard by responding to the survey today.

One of the most pressing issues which IBEC has considered is the proposed standardisation of tax relief on employee contributions to pension schemes at 33%.  This will have the effect of reducing the relief available to middle income earners and will amount – in practice – to either a pay cut or a reduction in contributions for such middle earners.  This can only have a negative effect on pension savings.

IBEC is also concerned with the framework’s proposals for auto-enrolment into pension schemes, particularly the potential impact on wage demands and labour costs  While the idea is sound in principle, there are practical difficulties, as recent experience in the United Kingdom and New Zealand has demonstrated.  Those difficulties include:

• the cost of establishing and administering an auto-enrolment system
• issues about income adequacy
• potential knock-on wage claims.

The increase in the pension age from 65 to 68 over a period of time could potentially have serious consequences for employees who have a contractual retirement age of 65 and their employers.

These issues were raised by IBEC’s head of legal and regulatory affairs Marie Daly at an opening consultation seminar hosted by the Minister for Social Protection Éamon Ó Cuív in July.  Further consultation is promised on individual aspects of the framework over the coming months and years.

IBEC has formed a pensions advisory group to advise and assist our responses to these issues. The group’s goal is to ensure that the objectives of the National Pensions Framework are achieved without undue costs or unintended consequences.

To feed into IBEC’s response to the pensions framework or to get more information on the issues, contact Marie Daly at marie.daly@ibec.ie.

The Government recently announced a €360 million investment in academic research. Between 2011 and 2016, the Government will invest €297 million in the fifth cycle of the Programme for Research in Third Level Institutions, with €63 million coming from the private sector.

Commenting on the announcement, IBEC enterprise and innovation executive Aidan Sweeney said: "Ireland needs one of the best research systems in the world in order to meet its aspirations to be an innovative and productive economy.

“The third level research programme has been a huge success to date and has enabled Ireland’s higher education institutions to move towards world-class standing in infrastructure and resources for research. This new round of funding will have an extremely positive impact on all levels of industry-academic collaboration leading to generation of new technologies and high-quality jobs.”

The investment in third level research follows the recent announcement of Innovation Fund – Ireland by An Taoiseach during his July trip to the United States.

Originally conceived in the Building Ireland's Smart Economy framework document, the innovation fund is being established to generate €500m to support early state R&D-intensive SMEs. Government will match international investment of up to €250 million in a bid to attract leading venture capital firms to Ireland. The inspiration of the scheme is the Israeli Yozma fund, which was successful in spawning a number of successful hi-tech companies.

“The announcements of cycle five of the third level research programme and Innovation Fund – Ireland are firm indications of Ireland’s commitment to fostering an economy built on innovation,” concluded Mr Sweeney.

For more information on innovation policy, please contact Aidan Sweeney, at 01 - 605 1642 or aidan.sweeney@ibec.ie.

Pictured is Alastair Campbell with IBEC president, Leo Crawford. Mr Campbell addressed IBEC members at a discussion and networking event on 2 July, where he was special guest and speaker. Alastair delivered a talk on the role of business in shaping public debate and public policy and gave his audience a great insight into communications strategy and message delivery. Mr Campbell was the political and news editor with the Mirror and the Today newspapers before becoming Tony Blair’s press secretary. After the 1997 election he became the Prime Minister’s chief press secretary and official spokesman and following the second Labour election victory, he became the government director of communications and strategy.

IBEC’s Telecommunications and Internet Federation (TIF) recently raised over €20,000 for Haven Partnership at its 12th annual TIF charity ball. Haven is an Irish NGO that has worked in Haiti since February 2009. Originally launched as a house and community building charity working in rural areas, Haven has been providing emergency relief to those displaced by the earthquake, which hit Port au Prince on 12th January, 2010. Pictured at the recent charity ball are (l to r): John McKeon, TIF chairman; Leslie Buckley, founder of Haven Partnership; Maurice Healy, Healy Group; Danny McCoy, IBEC director general; Minister Eamon Ryan TD; Tom Noonan, former IBEC president; and Tommy McCabe, TIF director.  

Pictured at PharmaChemical Ireland's recent AGM were Dominic Carolan, Genzyme and chairman PharmaChemical Ireland; Matt Moran, director PharmaChemical Ireland; Minister Batt O’ Keeffe; Danny McCoy, IBEC director general; and Barry O‘Leary CEO, IDA Ireland. 140 PharmaChemical Ireland members and guests attended the event at the Clarion Hotel, Cork.

Gerry Murphy, Chief Executive Officer of the National Transport Authority (NTA) was guest speaker at the June meeting of the IBEC Transport Council, outlining the role, functions and current plans of the new authority to IBEC members. A highly influential 20 year Transport Strategy for the Greater Dublin Area will be finalised by the NTA in the coming months, the objective being to provide a long-term strategic planning framework for the integrated development of transport infrastructure and services in the GDA. Pictured (l-r) at the council meeting are: Eddie Whelan, National Vehicle Distribution, Gerry Murphy, National Transport Authority, Pat Keating, Shannon Foynes Port Company, and Brian Brennan, Veolia Transport.

IBEC is delighted to announce the Irish winners of the 2009/10 European Business Awards for the Environment:

• Abbott Ireland for best environmental management
• JFC Manufacturing in Galway for best environmental product
• Lagan Cement in Westmeath for environmental excellence

These awards showcase the best of Irish innovation in environmental management and practice. The number and quality of Irish entries this year reflects the increasing importance of environmental issues for businesses of all types and sizes.

Abbott Ireland received the environmental management award for introducing a green plan that improved the environmental efficiency and sustainability of its business activities and products.

JFC Manufacturing in Galway (pictured above) won the product award for converting bottles into a raw material for manufacturing pipes, which are then used as part of a storm water attenuation system that minimises flooding.

Lagan Cement received the IBEC environmental excellence award for significantly reducing its carbon footprint by substituting a portion of its non-renewable fossil fuel with green energy derived from solid recovered fuel.

Established in 1987 by the European Commission, the European Business Awards for the Environment identify and reward European companies that bring together innovation, economic viability and environmental concerns.

The purpose of the Immigration, Residence and Protection Bill 2010 is to establish a statutory framework for the development of government policy on immigration. The previous bill, introduced in January 2008, was withdrawn due to a large number of amendments tabled while under consideration in the Dáil. The Government decided to withdraw the bill and deal with all the amendments together rather than individually during the Dáil debates.

The bill deals with the following issues:

Visas: The bill provides for a statutory system for visa applications and a process for reviewing negative decisions. The intention is that the processes will be consistent and transparent.  The bill also sets out the conditions by which a foreign national can enter the state.

Residence: Residence permission will be the basis for lawful residence in the State. The intention is that there will be a variety of categories of residence permissions to suit different classes of foreign nationals.  The Minister for Justice intends to publish secondary legislation that will prescribe the  conditions on which someone may be granted residence.

Removal from the State: Under the previous bill concerns were raised that the notification period for someone being removed was quite short and this could lead to serious situation arising whereby people are removed without being able to put their affairs in order or appeal the decision. The Government has prescribed for additional notification periods.

Protection: The bill also codifies new EU directives in relation to migrants rights and human trafficking.

The bill is intended to be considered during the autumn session of the Oireachtas. IBEC welcomes this long overdue framework which will provide transparency and clarity for employers, workers and other who are interacting with the immigration system. Further information will  be distributed in the coming months.

If you have any questions or queries please contact Alan O’Kelly at alan.okelly@ibec.ie.

An IBEC delegation met with the Minister for Trade and Commerce Billy Kelleher in June to discuss the Government’s new strategy to promote overseas trade, tourism and investment in Ireland’s existing and new high potential markets.

The overall objective of the strategy is to marshal and coordinate the resources of the state in a way that best supports Irish firms, of all sizes, that are trying to trade and grow business overseas.

The intention is that joined-up thinking will lead to more effective delivery of state support to Irish business and investors in overseas markets. A more coordinated approach between government departments and state agencies will be essential to the delivery of the strategy.

“IBEC is hopeful that rising international demand coupled with increasing cost competitiveness at a national level will lead to an improved export performance in the next 12 to 18 months. The new tourism, trade and investment strategy should maximise Irish exporters’ ability to capitalise on these opportunities,” said Pat Ivory, IBEC head of trade and transport policy.

The UK and USA are traditionally viewed as the most important markets for Ireland’s exports. However, some of the Eurozone countries are increasingly featuring prominently. Asia is also a growing, emerging market. Trade with the new EU Member States is currently low but undoubtedly offers opportunities for future growth. While there are significant opportunities for Irish exporters in emerging markets, it is also important to continue to support key established markets such as the UK, USA and Europe.

A partnership approach should be adopted with some countries and different strategies for different countries should be developed. Toolkits for doing business in various markets should also be developed.

IBEC also highlighted a number of issues of importance to the exporting sector including the need to address delays in processing visas to non-EU tourists and business travellers to Ireland, the importance of internationalisation of education and international connectivity.

The strategy is expected to be published in the coming weeks.

For further information contact Pat Ivory at pat.ivory@ibec.ie or Paula O’Dwyer at paula.odwyer@ibec.ie.

Belgium, under a caretaker government, took over the six-month rotating EU Presidency on 1 July. Belgium’s priorities include:

Employment
Against the backdrop of the economic crisis and the emphasis on restoring growth and creating sustainable jobs in the Europe 2020 Strategy, this is the central theme of the Belgian Presidency. The main focus will be on “green jobs” and “white jobs” (niches in the employment market created by an ageing demographic), along with the consequences of economic restructuring, combating discrimination in work and equal pay for men and women. 

The single market
Belgium will pick up on the work initiated by Professor Mario Monti’s report on relaunching the single market. The Presidency will concentrate on eliminating barriers to protecting innovative ideas, on administrative simplification, protecting intellectual property and creating a European patent.

Creating a sustainable industrial policy
To deliver a green European economy that can compete globally, the Presidency will work on establishing a sustainable industrial policy through an integrated approach.

Research and innovation
The priority is to define guidelines to enable the Member States to better plan together in research and innovation. The focus will be on defining indicators to measure progress in achieving the 3% target, the creation of a European research area and simplification of Community programmes.

Social cohesion
There will be a special emphasis on encouraging social convergence towards higher standards. This will be done by establishing objectives and performance indicators covering issues such as social protection, social inclusion, pensions and healthcare.

The environment, climate change and energy
The Presidency will emphasise the importance of energy and resource efficiency and preserving biodiversity. It will work with the European Commission to ensure that the EU has a voice in international climate change negotiations. Energy security will also remain a priority with the need to address the shortcomings in the EU’s infrastructure.

Find further information here.