Business groups step up engagement with Sinn Féin as election looms

It follows Davy hosting a gathering of 50 global institutional investors in Irish sovereign bonds, banks, and Irish stock-market-listed companies

Sinn Féin's Pearse Doherty spoke to global investors at a Davy gathering. Picture: Liam McBurney

The main business groups Ibec and Isme have said they have stepped up their engagements with Sinn Féin's economic and business policy makers as the general election draws closer. 

It comes after Davy, the Bank of Ireland-owned broker, hosted a gathering in the City of London last Friday with Pearse Doherty and 50 global institutional investors who hold Irish sovereign bonds, Irish bank shares, and other Irish stock market-listed companies.   

Isme chief executive Neil McDonnell said the business group has a "cordial and a general positive" relationship with Sinn Féin enterprise spokesperson Louise O'Reilly.

 The business group has different views to Sinn Féin in terms of regulating the rental market when there were too few houses available for rent, Mr McDonnell said. 

Engagements with Sinn Féin will increase as the election draws closer, he said. 

Ibec executive director Fergal O'Brien said political parties were preparing their manifestos, and the business group assessed that there was a consensus about policies over managing the economy.  

At the Davy meeting in London, Mr Doherty told the investors that a Sinn Féin government would retain a shareholding in AIB, said Davy analyst Diarmaid Sheridan.

Mr Doherty said that the shareholding would be a good investment and deliver payments for the State. 

Mr Sheridan said that the bank levy and other well-documented policy differences on banking between Sinn Féin and the Government were discussed.  

Following the political upheavals of the past decade in the US and Europe, global investors are even more focussed on understanding the implications of potential policies that new governments could introduce.

Sinn Féin government

One of the concerns of the audience was that a Sinn Féin government would have a different approach to running budget surpluses and by increasing spending would bolster the size of the State. Mr Sheridan said the investors also wanted to know whether a Sinn Féin government would reconsider policies designed to attract foreign direct investments. 

However, Mr Sheridan said the Sinn Féin finance spokesman told the audience that the party's policies would not significantly change the State's current approach over corporation tax.

"Overall, Sinn Féin’s approach from an economic standpoint is more ‘New Labour’ than ‘Corbyn Labour’," according to the Davy analysis written for international investors. 

Sinn Féin recognises the strength of the economy and is not advocating change in corporate tax or foreign direct investment.

"Its budgetary policy, while pointing towards a bigger State, would seek to avoid 'boom-bust cycles' via fiscal prudence. 

"However, the State would be bigger and its proposed approach to income tax for higher earners differs from the current Government. It also proposes the assessment of a wealth tax," Davy said.