Whatever the final outcome of the election is, it is imperative that Irish business needs are represented in the next Programme for Government, writes Fergal O’Brien, Executive Director, Lobbying and Influence, at Ibec.
While we face a challenging business environment, Ireland also stands at the cusp of an exceptional opportunity.
The next government cannot afford to be complacent about the opportunities that economic success has delivered for society, but we now need to set out an ambitious vision for Ireland that prioritises long-term competitiveness, investment, and growth.
From Ibec’s perspective, we are encouraged by the broad consensus around introducing a PRSI rebate for businesses to offset rising costs—a measure we proposed to support businesses most vulnerable to these pressures.
While parties differ on the specifics, there is a growing recognition of the need to reform the personal taxation system, particularly regarding thresholds for higher income tax rates.
Given the growing global uncertainty, it is vital that the next Government ensures that our personal tax system remains competitive.
We are also entering an era of shifting trade dynamics.
While global economic uncertainty and heightened geopolitical tensions present challenges, concerns about Ireland’s economic success must be addressed at home rather than deflected outward.
To protect our competitive edge and maintain our standing in the global market, we must also confront our own capacity constraints head-on.
The demand on infrastructure including housing, water, the electric grid, and transport is growing.
As well as impeding the day-to-day operations of business, these bottlenecks make it more difficult for Ireland to draw in and hold on to foreign direct investment (FDI).
FDI has long been a cornerstone of Ireland’s economic model, driving innovation, aiding job creation, and supporting regional development.
However, Ireland has experienced a slowdown in the FDI pipeline over the past year.
This is a trend that we can’t ignore. Ireland must acknowledge the growing global competition for investment, and that other countries are positioning themselves to attract the same companies and industries that have historically chosen Ireland.
If we fail to address our infrastructure deficits head-on, we risk blunting our competitive edge.
Investment in infrastructure is more than just a business necessity; it is a societal imperative.
The lack of reasonably priced, high-quality housing options makes it harder for businesses to recruit top talent.
Capacity constraints in water and energy infrastructure pose risks to both business continuity and public welfare.
If we are to address these issues, it will require not only significant financial investment but also a streamlined and efficient approach to delivery.
Ibec recently published a new energy paper highlighting the impact of high electricity costs on Irish businesses, which remain among the highest in Europe.
The paper outlined practical short- and long-term measures to address these costs for both businesses and households.
It is encouraging to see this issue gaining prominence during the final stages of the campaign.
We hope to see the next government commit to policies that enhance Ireland’s long-term competitiveness through continued investment in education, skills development, and innovation.
It is vital that we prepare the workforce of the future to ensure that businesses can continue to grow and evolve in response to changing market demands.
Ireland’s future prosperity depends on striking the right balance between addressing immediate economic challenges and planning for long-term growth.
The decisions made in the coming months in deciding the Programme for Government will have far-reaching implications for the country’s economic success long into the future.
Now is the time to act boldly and decisively, setting a course that ensures Ireland remains a global leader in innovation, investment, and business excellence.
Complacency is not an option as Programme for Government negotiations begin.
The next government has the opportunity to build on Ireland’s economic success and lay the groundwork for a sustainable, inclusive future.
With the right policies in place, Ireland can emerge stronger, more competitive, and better positioned to navigate the complexities of the global economy than ever before, solidifying our role on the global stage.
