Investment agencies must build on ties, claims report

THE report on the future development of the economy recommends strengthening the links between the three main investment agencies as part of a shake-up of State bodies.

A single chairman should be appointed to head the boards of Forfás, Enterprise Ireland and the IDA, the Enterprise Strategy Group (ESG) report recommends.

The report says the boards of the three State enterprise development agencies should also have common board members.

It said the agencies will have to work closer to ensure a coordinated approach to developing sectors of the economy where Ireland could be a world leader.

It also recommends bringing Shannon Development, which is tasked with attracting industry to the mid-west, under the remit of Enterprise Ireland and the IDA.

However, ESG chairman Eoin O’Driscoll said the proposal to have a single head of these agencies was not a precursor to re-merging the bodies.

He said the bodies’ roles, with Enterprise Ireland focused on investing and assisting Irish companies and IDA attracting foreign capital, should remain separate.

In a statement last night, Enterprise Ireland said it welcomes the report as it recognises the potential of the indigenous business sector to increase its value to the economy.

“It comes at an appropriate time as businesses endeavour to meet the significant challenges of an evolving and increasingly sophisticated and competitive global market. This requires a change in business model from cost-plus to value-add.

“Enterprise Ireland will take fully on board the clear direction set out in the Enterprise Strategy Group’s report in the development of its new strategy which will be published in the autumn.”

The ESG also said other Government bodies will have to adapt to the economic climate, with the training body FÁS urged to focus more on training those already in employment.

On infrastructure, the report said investment in roads, waste, telecoms equipment and other projects should be geared to regions and co-ordinated with the National Spatial Strategy.

It also urges that the regulators of the telecoms, gas, electricity and broadcasting markets merge to create a single watchdog.

Mr O’Driscoll’s report claimed the regulators have failed to improve competition and deliver lower prices for business and domestic users.

As the most expensive EU country, the report said cost- competitiveness must improve.

Economic architects

Key points:

TK Whitaker: Got Government to remove protectionist policy and open up market.

Culliton: Stressed importance of technological innovation and of research and development.

Highlighted need for the state of play a supporting role in bringing this about.

Eoin O’Driscoll: Report stresses importance of Irish firms building up serious overseas markets.

Manufacturing expertise to be supported by dynamic sales and marketing.

R&D vital to long term goals.

Tax base to be kept competitive while government delivers policies to ensure we stay ahead of the pack.