IDA the model for public sector to emulate

THE IDA is arguably the greatest unsung hero in the Irish economy.

While others have wailed and given up on Ireland, this organisation has got its hands dirty by persistently marketing the merits of our island as a globally competitive investment centre. The fruits of that endeavour are visible in its 2011 report.

In a year when many told us the world was ending, IDA Ireland delivered 61 companies investing here for the first time. In total, 148 new projects were secured, bringing 13,000 invaluable jobs to the economy.

Moreover, these investors stem from those parts of the world economy that have long-term growth potential — life sciences, IT, digital media, professional and financial services. Remember all of this activity took place while the eurozone stumbled from one crisis to another and various EU governments took potshots at our corporate tax rates.

Despite these challenges, blue-chip companies such as Coca-Cola, Fidelity, Google, SAP and HP decided to put hard money to work here.

Are they naive dopes who do not understand the vitriol spewed out by a number of commentators discussing this economy? In fact, these companies pride themselves in conducting forensic research before spending a penny of their shareholders funds.

The fact that they opted for Ireland is testament to a range of issues, including the talent pool, being the only English-speaking country in the eurozone, a developed infrastructure and, yes, a competitive tax rate.

In the 1980s, the last time Ireland was in the doldrums, we were all looking for leadership to provide some form of vision. One high-profile economist advised the last person leaving the country to turn the lights out.

That doom-laden prognosis was offset by a vibrant marketing campaign produced by the IDA branded “We are the young Europeans”. Behind the scenes, this taxpayer-funded entity was selling, marketing and cajoling around the world in its efforts to convince hard-nosed investors of our merits. It succeeded beyond its wildest dreams.

Contrast this with the abject performance of FÁS, which was vested with our money and trusted to fight the country’s corner. The scandal that engulfed its higher echelons helped tarnish the spirit that should define public service in Ireland. Having an energetic, motivated and efficient public service is a key plank in re-establishing Ireland’s status abroad. I’m sure staff in the IDA have endured pay clips, employment freezes and tax rises like the rest of us. Instead of these being debilitating factors this body has continued to plough an often lonely furrow.

Its weapons to fight future battles have, in fact, been helped by developments in recent years. Did you know that Ireland is ranked first in the world on business legislation for foreign investors, first for availability of skilled labour, and first for value of investment projects? These attributes are helping the hopper, with up to 100 live projects under discussion presently.

Perhaps certain politicians and observers will think twice about mouthing off about this country in that context. If they could provide evidence that they have ever created a single job in our economy we might give them a little more respect.

The prevailing narrative about public servants is, I believe, downbeat and cynical. They used to form the leading edge of our economy but have been degraded through years of largesse, poor management, political complacency and some self-inflicted whingeing. The IDA is a shining example of how all that can be overcome, and provides lessons that should be copied across the public service.

Joe Gill is director of research with Bloxham Stockbrokers