I am delighted to be here today to officially open the Bank of Scotland’s new headquarters. Today, represents a landmark occasion in terms of Bank of Scotland’s presence in Ireland. Back in 1994, I had the honour, as Minister for Finance at the time, to open your first offices in Ireland. That was when you employed less than 20 people and had some €100 million in assets. How times have changed and progressed since then!
In fact, not only am I here today to officially open this new headquarters, I am also delighted to announce that Bank of Scotland (Ireland) is to establish a new customer service centre in Dundalk this year. This centre will ultimately create 300 new jobs in the area with recruitment to begin immediately.
Not alone is this good news in terms of the development of Bank of Scotland’s retail network in Ireland, it also provides a great boost in terms of our ongoing ability to create and sustain quality employment in this country.
I am confident that given Bank of Scotland’s record to date, you will continue to spearhead changes that benefit the economy, our society and the general banking customer base.
In fact, the evidence of your progress in this country is to be seen in a wide range of successes to date. Last year, you were named Company of the Year for your customer and employee relationships in the Power100 Index Awards. You also won Supplier of the Year Award for outstanding results in customer relationships. And just to round off the virtuous circle of perfection, you have added to your repertoire a nomination as one of the top 50 companies to work for in Ireland.
The Economy – Grounds for Optimism
Indeed, this country’s economic performance over recent years is not that dissimilar to the business expansion of this Bank. With quite remarkable growth rates of over 7.2% per annum in real GDP terms since 1997, this economy is well poised to continue on a sustainable growth path. This is reflected in the forecasts for average GDP growth of 5.3% over the period 2005-2007. There are many contributors to that success – not least the banking and finance sector which is hugely important to the Irish economy. The Government values greatly the contribution of your industry to our economic success and ongoing growth.
Ireland is a growing country - growing in a positive direction. We remain one of the most successful EU states at attracting foreign investment and 39% of our population aged 25-34 have a third level education. Clear indicators for optimism!
Between careful management and reasonable expectations, especially in the incomes area, the economic outlook for some time should be solid and healthy. As a highly open economy, we must remain acutely conscious of wider contexts, particularly the worrying performances in the economies of some important Irish trading partners. In short, we need to remain sensible while, at the same time, being ambitious for our economy and society.
Banking – An Important Economic Contributor
As I indicated earlier, the Banking and Financial Services sector is very important to the Irish economy. Today almost 53,000 people are employed within banking, insurance and building societies. Together, they contribute over 4.5% to annual GDP. Particularly important from my perspective is that the substantial tax receipts generated by the sector’s activities make a valuable contribution to the provision of public services.
Our financial services industry is now global in nature and, certainly, the international nature of the industry amounts to a major success story. It is quite remarkable to reflect on the fact that half of the top 50 banks in the world are now located in Ireland.
Everyone here, I know, appreciates that the reputation of the financial services sector is essential. We in Government will do all we can to support and promote this where appropriate, both at home and abroad.
Ireland has a well-respected regulatory system, which is principle-based. It is independent and transparent in its dealings with companies in the financial services industry. The promotional work of IDA Ireland is a key driver in keeping the reputation of Ireland at the forefront of international financial services. I acknowledge here that highly valuable work in contributing to the success of an industry in which you play a significant role.
Conclusion
Before I conclude, it would be remiss of me not to mention this Bank’s sponsorship of the Leinster Rugby Team. To have a prestigious sponsor like Bank of Scotland on board at a time when the costs of running a professional, high-achieving team are so high is a major boost. I know that the Leinster branch is proud of its association with this Bank and as you rightly say “you are not just sponsors, you are supporters.” That support is evident both in Irish sport and in your extensive business operations here in Ireland today.
In conclusion, I would like to wish you every success in your new headquarters and I look forward to hearing about your ongoing expansion and growth.
Thank you.
1st June 2005
Ends