Canadian firms' Irish expansion 'hampered' by high costs

Ireland-Canada Business Association says the housing crisis is 'a key area of concern'

Canadian companies in Ireland have urged the Government to better accommodate their growth plans and have reiterated the call for Ireland to ratify the Ceta trade deal between Canada and the EU.

Canadian companies in Ireland have urged the Government to better accommodate their growth plans and have reiterated the call for Ireland to ratify the Ceta trade deal between Canada and the EU.

On the back of a survey of its members, the Ireland-Canada Business Association (ICBA) said Canadian multinationals in Ireland plan to expand their workforce here and raise wages. However, it said further expansion is being “hampered” by the high cost of living, salary costs and the “intense competition for talent”.

ICBA said the housing crisis is “a key area of concern”, with 85% of its members of the view that the Government is not doing enough to support their staff in the current housing market. Most Canadian firms want further Government interventions to boost housing supply and affordability here.

Strong talent pool

The number of jobs provided by Canadian companies in Ireland has grown by 25%, to more than 15,000, since 2018. There has been a doubling of Canadian firms choosing Ireland as their EU base since the Brexit deal was passed. But, as well as EU access, Ireland is being chosen due to what the Canadians see as a competitive tax regime and a strong talent pool.

ICBA members include Air Canada, Shopify, PressReader, TD Bank, Bank of Montreal and the Canadian-owned Irish Life. 

As much as 80% of Canadian multinationals in Ireland believe the Government has adequately supported businesses through the Covid crisis and nearly 70% plan to increase wages.

But, they have called for increased tax reliefs and better broadband to accommodate remote working practices.

ICBA chair Chris Collenette said the opportunities for Ireland, from fostering a strong business relationship with Canada, are “immense”, particularly in the wake of Brexit.

“Our survey clearly shows how committed our members are to staying and investing in Ireland, despite the challenges of the Covid pandemic,” he said.

But, in order to continue to grow in Ireland, Canadian multinationals need a competitive business environment and their Irish workforces need greater support."

Earlier this year, Mr Collenette warned an Oireachtas committee that a failure by Ireland to ratify the Ceta trade deal could be detrimental to Ireland’s post-Covid recovery, weaken its relationship with Canada and make it a less attractive investment location to Canadian business.

Call to ratify Ceta trade deal

On the back of the new survey, Mr Collenette reiterated the call for Ireland to catch up with 15 other EU member states and ratify the Ceta deal. He said 84% of survey respondents support the ratification of Ceta.

“Last year alone, Ireland enjoyed a trade surplus of €1.7bn with Canada, with €2.1bn of Irish goods being exported to the country. There is no Irish businessperson who, if they were making €1.7bn more than their partner as the result of a provisional agreement, would not formalise that agreement as quickly as possible,” he said.