The Green Isle, sitting pretty on the edge of Europe just a skip, hop and jump away from a market of half a billion people, is proving an attractive location for Australian businesses writes Anne Lillis.
Similar in size to Tasmania with a population the same as Sydney, Ireland, a whopping 109 times smaller than Australia, is home to the perfect pint of Guinness and the shamrock, and is a purveyor of many a literary genius including James Joyce and William Butler Yeats.
Today Screentime ShinAwiL is the production powerhouse behind some of Ireland’s biggest entertainment series, including the Voice of Ireland, The Apprentice and MasterChef Ireland, all local versions of Australian television productions. Screentime Pty Ltd, established in 1996, was searching for a European base when it stumbled across the opportunities Ireland had to offer.
So is it the stories and memories of bygone days, the Guinness or the “craic” that attract Australian companies in a very competitive global market?
Resting on the edge of Europe Ireland ticks a few boxes for Australian companies looking to connect with the European market of half a billion people: the only English speaking member of the Euro-zone, it offers a highly skilled talent pool, a great pint of Guinness and a very social culture.
Screentime Managing Director Bob Campbell said they chose to locate in Ireland to capitalise on the European market. It made good business sense and he has no regrets. “In a very difficult television market the investment has been consistently good,” he said.
Screentime is not alone: 35 of Australia’s most prominent companies are now based in the Green Isle. These include packaging giant Amcor Flexibles, top retailer Harvey Norman, leading financial institution Macquarie Group and international building materials company James Hardie.
Ireland’s Minister for Justice, Alan Shatter, was delighted to represent his government at the 2012 St Patrick’s Day parade. “Australia and Ireland have a very strong bond and our business connections are of great importance to both economies,” he said.
Ireland was Australia’s 29th largest merchandise trading partner in 2010/11. Merchandise exports to Ireland in this period, valued at $123 million to the Australian economy, include wine, medications, and electrical machinery and parts. Services export trade was valued at $414 million, recreational travel forming the largest part.
“Now is the best time ever for Australian companies to locate in Ireland,” said Minister Shatter.
The government is focused on building relations and highlighting the huge opportunities Ireland has to offer Australian businesses. Shaken but not stirred by the recent global financial crisis, Ireland remains open for business and is more competitive than ever.
The Irish Consulate, Enterprise Ireland and the Industrial Development Authority (IDA), all of which have offices in Australia, actively support Australian businesses to connect with the Euro-zone.
The Celtic tiger – symbolic of Ireland’s boom times – has bolted. Business costs have fallen. Rents in some areas are reduced by up to 50 per cent since 2007, hourly labour costs have fallen by almost 20 per cent in the Information and Communication Technology sector in the last three years, and the unprecedented strength of the Australian dollar now all stack up in favour of the Green Isle as an attractive business location.
But not only that – doing business, in particular international business, in Ireland is easy.
James Hardie chairman Michael Hammes said the transfer of its headquarters from the Netherlands to Ireland in 2010 would improve the company’s chances of qualifying for tax benefits, as well as improve flexibility to undertake “strategic” transactions and simplify the company’s governance.
Operating from Ireland makes their intellectual property, treasury and finance operations eligible for a statutory tax rate lower than in The Netherlands, and most of their shareholders are eligible to receive dividends not subject to withholding tax.
Teresa Keating, IDA’s Manager in Australia, says,“Ireland is a very positive pro-business working environment that is the ideal base for operating in the Euro zone.” The four T’s as coined by the IDA drive this: talent, track record, technology and tax.
Talent: In addition to providing the likes of U2, One Direction, Ronan Keating and Brian Mc Fadden, Ireland has access to a highly-skilled, innovative, loyal and dedicated workforce. In a 2011 global survey by recruitment agent Manpower on talent shortages, Ireland was recognised as a global leader in the availability of skills and one of the least difficult locations to fill talent.
Track record: Being a gross exporter, Ireland is outward looking with well-established export connections with mainland Europe and America. This makes international business transactions easy.
Technology: As host to nine of the top 10 global software companies (eg. Microsoft, IBM) and four of the top five global IT services companies (HP, Fujitsu, Accenture) Ireland’s reputation for good technology infrastructure and a highly regarded research and development sector makes it a preferred location for Information and Communication Technology companies and highlights that the country has the technology to drive and advance efficiency in business.
Tax: Ireland is not a tax haven but it is the envy of its European neighbours, having the lowest rate of corporate tax in the Euro zone at 12.5 per cent. It also operates a very transparent system, making it easy to pay tax and do business in the country.
The Green Isle holds many opportunities for Australian businesses, the greatest being easy access to the Euro-zone. Supporting each other economically, socially and culturally, Australian/Irish ties look set to grow stronger for generations to come. A large Irish diaspora has made a significant contribution to Australian society: now the tides are turning with Australian companies shaping contemporary Irish society.
