Financial services sector raises contribution to economy

The financial services sector contributed Stg£5.3bn (€8.7bn) to the economy in the North and the Republic in 2000, representing an increase of 63.9% since 1995.

The independent findings were published in a review of the all-island financial services sector commissioned by InterTradeIreland.

The report, prepared by Indecon Economic Consultants in association with London Economics, represents the first ever review of the sector, which includes banks, building societies and insurance firms, on an all-island basis.

Employment projections by firms north and south showed a disparity.

The survey of firms in the Republic of Ireland suggest a 37% increase in the number employed in financial services in the next five years for their operations in the Republic but an anticipated decline of 11% in total employment for their operations in the North.

The report also found that Northern Ireland companies plan to increase employment in the Republic by 28%.

The survey found that 50% of respondents in Northern Ireland pointed to the region’s cost base as a strength, compared to 39.4% of respondents from Ireland who identified the South’s cost base to be a weakness. In the North, the sector reflects a more generic “high street” business model, with a very limited international presence. In the South on the other hand, and in particularly in Dublin, the industry operates in a highly international context. Recent data suggests that since its inception the IFSC provided more than €10bn in corporation tax to the Exchequer.