I am very glad to join you here to officially open Treasury Holdings’ very impressive new Headquarters here in Connaught House. Treasury Holdings investment here testifies to its commitment to, and confidence in, both its own future and that of our economy generally.
Our great strength as a society is our capacity to respond rapidly to changing circumstances. That is what is facing us at the present time. As a very open economy, we are directly and rapidly affected by changes in the external environment, such as the dramatic developments in international financial markets, the related sharp reduction in the value of the dollar, the changes in the environment for corporate investment globally and the international trend in consumer and business confidence.
Budget
Last week’s Budget is one that will sustain progress in the Irish economy through more difficult international conditions. Our ability to produce an innovative, progressive and socially caring budget at this time reflects well on the strength and resilience of our economy which we have built up over many years.
Today, we have the resources and the flexibility to respond constructively to less favourable conditions, in a way that would be the envy of our predecessors in the 1980s and of many of our European partners now. The Budget is prudent, and stays well within the margins of safety, but expresses the Government’s determination, not just to hold what we have, but to maintain forward momentum.
Construction
The recent Construction Industry Review 2006 and Outlook 2008-2009 confirms the key position of the sector in our economy. Output in 2006 grew by 12.4% in value terms, and amounted to €35.5 billion, or 24% of total GNP.
In 2006, construction accounted for 29% of all value added in the economy, up from 27% the previous year and 18% in 2000.
Since 1996, we have added 642,000 units to our housing stock, including 88,000 in 2006.
However, the Review and Outlook also recognise the difficulties facing the construction sector in the light of recent and ongoing developments in both the international and domestic economic environments.
That is why last week’s Budget underscores the Government’s determination to deliver on its housing commitments under Towards 2016 and the National Development Plan. We are providing €1.7bn – a record level of funding – for social and affordable housing in 2008. This is an increase of 16% on the 2007 Estimate, and more than double the allocation in 2001.
The changes to the stamp duty regime which we have introduced will help to restore confidence and stability to the market. They will significantly improve affordability, particularly for first time buyers, and provide a significant stimulus to the market by boosting purchasing power generally. The changes will ensure greater simplicity, fairness and certainty in the system.
From 1 January next, we will increase the ceiling for mortgage interest relief for first time buyers by 25%, from €8,000 to €10,000 for single people and from €16,000 to €20,000 for married people. We are also increasing the income tax relief on rent payment by 11%, and increasing the threshold for the rent-a-room scheme from €7,620 to €10,000, and are continuing with the generous tax reliefs for landlords investing in private rented accommodation.
Taken together, these measures testify to the Government’s commitment to the continued development of the sector, and to fully playing its part in restoring confidence and stability to the market, and I would encourage the industry to take a similarly positive and proactive approach.
Treasury Holdings
Since its establishment in 1989, Treasury Holdings has developed into one of the biggest and most successful companies in the sector, and has expanded significantly beyond these shores to include interests in the UK, Russia, Sweden and China. This year alone, Treasury Holdings has enjoyed significant successes both here and internationally, including:
Being chosen to develop Ireland’s National Convention Centre at Spencer Dock, it is already spearheading a major urban regeneration project;
Its selection to partner Drogheda Port in its development of a new port at Bremore;
Development of the 40-acre site at Battersea Power Station in London;
Opening the five-star Ritz Carlton Hotel, Ireland’s first Ritz Carlton, at Powerscourt, Co. Wicklow which I had the pleasure to officially open recently;
Announcing four new global divisions; and
Of course, opening their new Headquarters here today.
The recent Budget has highlighted the significant challenges posed by climate change and global warming, and the need for all of us to play our part in meeting those challenges. I was very encouraged to read that Treasury Holdings is not shirking its responsibilities in this regard. I would like to commend you for your involvement in the development of wind farms in recent years, and your commitment to sustainable development as evidenced by your use of carbon-neutral concrete in the National Convention Centre and wood-pellet boilers in the Ritz Carlton Hotel.
The recently published Forfás Statement on Outward Direct Investment highlights a remarkable transformation in our economy, in that in 2004, for the first time ever, Ireland became a net international investor, as investment outflows exceeded inflows.
Over the period 2002-2006, the property, leisure and tourism sector accounted for 15% of the total overseas direct investment.
I am very glad to note that Treasury Holdings has been to the forefront of that sea change in our economic fortunes!
Conclusion
Finally, and before declaring the new Headquarters formally open, I would like to thank John Bruder, Managing Director of Treasury Holdings Ireland, for his invitation to be with you here on this great occasion for you all.
I would like to wish John, Richard Barrett, Johnny Ronan and all who work for and with Treasury Holdings a very happy Christmas and continued success.
Thank you.
ENDS