New National Economic Plan Published

Happy New Year to all my readers!

Just before Christmas and days after our exit from the EU IMF bailout programme, the Government published its Medium Term Economic Strategy 2014 - 2020.

 

Its purpose is clearly set out 'as the core component of the Government's strategy to continue the work of rebuilding the economy, achieve sustainable economic growth, strong public finances and enduring job creation'.

No one should doubt the need for this new economic plan as a roadmap for Ireland's  future development over the next decade. Yet I have, over the Christmas, read much critical media comment from various economists and other commentators on the content or other aspects of this plan. Nevertheless there are two certain positives to this plan in my mind

 1. That we Do have an National Economic Plan for the future - that is good!

 2. Had we such a Plan a decade ago, Ireland would probably not have indulged in such reckless property speculation that brought our banking sector to its knees and almost bankrupt the country from which we now have a painful recovery - that is even better!

I said this in my Presidential Address 'Building a Sustainable Recovery' in Engineers Ireland in September 2011 (page 15, 'A Year in the Life') and still believe it. In that address I stressed the importance of economic planning and lamented its clear absence in previous decades.

I was greatly impressed therefore when the relatively new Director General Dept of Finance John Moran summoned a major consultative forum on the Medium Term Economic Strategy (MTES) in Dublin Castle on September 24th last to which I was invited. The genesis of the new MTES was at that Forum.

 

At the Forum we explored many diverse but interconnected themes like Ireland, our position in Europe and in the world, nurturing an entrepreneurial culture, the need for increased economic infrastructure and the barriers to its development and building an innovation driven economy.

The medium term economic strategy now published sets out the Government policies and forecasts until 2020 and predicts growth rates of above 2% from 2014, above 3% from 2017 and unemployment falling from present levels of 13.5% to 8% within 6 years. It has the ambitious objective of recovering the 330,000 jobs lost since the recession hit in 2008. It sounds ambitious but perhaps achievable as in 2013 some 58,000 jobs were created and this growth in jobs could accelerate if predicted economic growth happens.

 
Engineering manufacturing in Ireland is also recovering well according to the latest early year statistics. We know already that manufacturing accounts for some 25% of our annual GDP.
 
Following a slow start in early 2013 partly due to the pharma 'out of date patent' cliff, Investec Ireland reported 'a solid finish to 2013 for the manufacturing sector'.

On Jan 2, Investec reported that 'Irish manufacturing activity grew for the seventh month in December and at a faster pace than in November, ending the year on a high note after the country exited an EU/IMF bailout'.

An Taoiseach at the Autumn Panel Discussion with expert speakers

L ro R: Philip O'Doherty, E&I Engineering, Martin McVicar, Combilift, 

Edmond Harty, Dairymaster and Ian Quinn CregannaTactx Medical

This is all very encouraging after our own highlight this year - our Autumn Panel Discussion on Manufacturing in October led by An Taoiseach Enda Kenny TD supported by four of our leading engineering exporting entrepreneurs - Ian Quinn of Creganna, Philip O'Doherty of EI Engineering, Martin McVicar of Combilift and Edmond Harty of Dairymaster.

Patrick Joy of Suretank - Ernst & Young Entrepreneur of the Year

Finally 2013 was a year when another UCD engineering graduate Patrick Joy of Suretank became Ernst & Young Entrepreneur of the Year. Headquartered in Dunleer Co Louth, Suretank Group is the world's largest manufacturer of cargo carrying units for the offshore oil and gas industry. It currently employs 700 people and has revenues of over €68m. Congratulations Patrick!