Speech by the Taoiseach at the Clonmel Chamber of Commerce Economic Conference 22-01-10

I am delighted to have the opportunity to speak to you here today. Thanks very much to Clonmel Chamber of Commerce for the invitation.

We all know that the economy is going through a very difficult adjustment. 

But following the tough decisions in the Budget, there are clear signs of stabilisation:

-          the December tax figures were slightly better than forecast;

-          the rate of increase in unemployment has slowed down significantly;

-          consumer sentiment has stabilised at levels not seen since early 2008; and

-          the Purchasing Managers Index for manufacturing is at its highest level in nearly two years.

While this stabilisation is welcome, the next stage is to return to export-led growth and independent commentators, including the ESRI, now expect the economy to start growing again later this year. 

However, there is no room for complacency – we still have a mountain to climb before we have restored our competitive position.  But if we continue to make the adjustment, we can benefit from export-led growth as we did in the 1990s. 

The lesson from severe global recessions in the past is that as well as weathering the economic storm, countries need to restructure their economies to target the next wave of economic growth.

That is why the Irish Government was one of the first countries out of the blocks to devise a blueprint for repositioning our economy—the Smart Economy framework we produced in December last.

Central to this is our vision of Ireland as an ‘Innovation Island’.  We already have unrivalled strengths in international investment – and are increasingly embedding this investment in sophisticated research networks. 

But we are determined to provide also the best incubation environment for Irish entrepreneurial talent, creating a world class research, innovation and commercialisation system – and unlocking the known strengths of our indigenous business sector.

The priority for the Government in the year ahead is to drive this return to economic growth and employment.

That is why we have established NAMA and will be re-capitalising the banks.

That is why we have included stimulus measures in the Budget to invest in energy efficiency, tourism and other capital projects.

That is why the Budget included new PRSI incentives for job creation.

All our efforts in the next year will be on identifying and then implementing the sectors where we can attract new investment and create jobs.

For example, in the first half of this year, we will publish new strategies for the IDA and for the Agri-Food sectors, as well as a new Action Plan for Trade and Investment.  The Innovation Taskforce will also report in the next couple of months.

SMEs are of course central to this effort, and the Tánaiste has re-convened the Small Business Forum to identify the particular needs of the SME sector. 

We also look forward to its report, which will complement the independent Credit Review System announced in the Budget.

We are also working to reduce the administrative burdens thereby allowing businesses to concentrate on the day to day running of their enterprise more efficiently.

We have also introduced formal arrangements to reduce the payment period by central Government Departments to their business suppliers from 30 to 15 calendar days.

It is measures such as these that will help all those companies that are represented by the Chambers of Commerce.

Here in Clonmel and the surrounding region Enterprise Ireland is working hard to foster job creation through supporting new High Potential Start-Up companies.

It is also focused on the retention and creation of new jobs in existing companies and in enhancing Ireland's innovation capability, by supporting research in companies and third level institutions.

In addition to providing direct finance, Enterprise Ireland has supports to help enterprise get off the ground.  The Agency has also assisted the formation of a number of successful Community Enterprise Centres in Clonmel, and other County Tipperary towns - which is a crucial part of the drive to create new regional enterprise.

For its part, IDA Ireland has 11 client companies in South Tipperary, employing approximately 3,300 people.

The IDA Strategy for South Tipperary is focused on Clonmel, where strong property solutions can be developed and clustering can be achieved. 

The future development of the Ballingarrane Estate - incorporating an IDA Business Park and Tipperary Institute - as well as the delivery of broadband fibre-optic cable to Clonmel under the Metropolitan Area Network will be key assets in the quest for further overseas investment in the county. 

Clonmel was, of course, severly affected by the flooding last November, which came on top of the flooding at the beginning of the year. I saw for myself the damage it caused and I know that it resulted in a great deal of difficulty and distress for business people, home owners and families.

The Government appreciates the human dimension to the flooding and we have set up a Humanitarian Assistance Scheme to provide income tested financial support to people who have suffered damages to their homes and who were not covered by insurance. Community Welfare Service staff in South Tipperary, ably led by Sile Collins, have been proactively supporting families since the flooding occurred.

We are also pressing ahead with the Clonmel Flood Relief Scheme, which will protect properties in the future. The civil works in the Clonmel West Scheme are due for substantial completion by March this year. And all going well, it is expected that the 2nd phase of the Clonmel Works, incorporating the Clonmel North and East Schemes, will commence this Summer and will be completed around the middle of 2012. All of this will be overseen and driven by the Office of Public Works.

With an estimated total cost of some 50 million euro, this represents a major investment in the area. We believe it will be money well spent. It's very noteworthy that a substantial number of properties within the Phase 1 area, that would have flooded on a previous occasion, did not experience flooding this time around. I know that's no consolation to the properties that were in fact flooded but it does underline the effectiveness of the flood defence works that have been completed to date. And it holds out hope for the future for all householders in the area at risk of flooding.

I would like to take the opportunity today to commend the planning and preparation work done by Clonmel Borough Council in conjunction with the Flood Response Group. 

This enabled the issuing of early flood warnings on local radio, the distribution of over 7000 sandbags to vulnerable areas, the erection of demountable protection and signage and the identification and management of road diversions.

There was a tremendous show of social solidarity here in the town last November. A great many people came together and put in long hours responding to the flooding challenge. It is only right and proper that we should acknowledge their work and thank them for it. 

Borough Council staff, both indoor and outdoor, worked with An Garda Síochána, the HSE, and the Defence Forces to respond to the needs of the community.  They were supported by many volunteers including Civil Defence and St. Vincent de Paul. Local radio was central to communicating public information messages and the Clonmel Chamber of Commerce and the Association of Clonmel Traders kept their members informed of parking and traffic restrictions.  I would also like to pay tribute to the invaluable assistance provided by the OPW to the local authority in combating the worst effects of the flooding.

As always the warmth and generosity of the Irish people was evidenced during flooding, with offers of assistance from individuals, businesses, voluntary agencies, sporting and community organisations, local hostelries and the media.

It all gives the lie to the cynics who dismiss talk of community spirit, social solidarity and active citizenship as so much hot air.

And the Clonmel Chamber of Commerce is certainly demonstrating that it is there to provide that support to the business community of the town. Through your hard work and support for the business community, you have firmly established yourselves as the key local business representative and indeed a major voice of business in the South East region.

Thank you again for the opportunity to address you.

Go raibh maith agaibh.