Tithe an Oireachtais
An Comhchoiste um Ghnóthaí Eachtracha agus Trádáil
Tuarascáil
Rannchuidiú na Roinne Gnóthaí Eachtracha agus Trádála le Téarnamh
Eacnamaíochta
3ú Tuarascáil
Nollaig 2013
Houses of the Oireachtas
Joint Committee on Foreign Affairs and Trade
Report
The Contribution of the Department of Foreign Affairs and Trade to
Economic Recovery
3rd Report
December 2013
31FANT009
1
Joint Committee on Foreign Affairs and Trade
List of members
Chairman:
Pat Breen (Chair) (FG)
Deputies:
Eric Byrne (Lab)
Seán Crowe (SF)
Bernard J. Durkan (Vice-Chair) (FG)
Olivia Mitchell (FG)
Gerald Nash (Lab)
Dan Neville (FG)
Maureen O’Sullivan (Ind)
Brendan Smith (FF)
Senators:
Deirdre Clune (FG)
Mark Daly (FF)
Lorraine Higgins (Lab)
Michael Mullins (FG)
David Norris (Ind)
Jim Walsh (FF)
Notes:
1. Deputies appointed to the Committee by order of the Dáil on 9 June 2011
2. Senators appointed to the Committee by order of the Seanad on 16 June 2011
3. Deputy Pat Breen elected as Chairman on 22 June 2011
4. Deputy Bernard Durkan elected as Vice Chairperson on 22 June 2011
5. Deputy Gerald Nash appointed on 26 January 2012 (in substitution for Michael
McNamara)
6. Deputy Olivia Mitchell appointed on 19 July 2012 (in substitution for Dara Murphy)
7. Deputy Brendan Smith appointed on 19 July 2012 (in substitution for Seán Ó
Fearghaíl)
8. Deputy Seán Crowe appointed on 25 September 2012 (in substitution for Pádraig
MacLochlainn)
2
Acknowledgements
The Joint Committee would like to express its appreciation to all those who shared their views,
experience and ideas on the contribution of the Department of Foreign Affairs and Trade to
economic recovery.
In particular it would like to thank the Secretary-General and staff of the Department of Foreign
Affairs and Trade, and the Secretary-General and staff of the Department of Jobs, Enterprise and
Employment; the Chief Executive Officers and staff of the following bodies: IDA-Ireland, Enterprise
Ireland, Forfás, the Irish Business and Employers’ Confederation, the Irish Exporters Association, the
Joint Arab-Irish Chamber of Commerce, Asia Matters, Chambers Ireland, the British-Irish Chamber of
Commerce, the American Chamber of Commerce Ireland, the Irish Farmers Association; the Staff of
the Consulates-General of Ireland in Atlanta, San Francisco and Chicago, and the Honorary Consul of
Ireland, Houston.
In addition, the Secretariat of the Joint Committees provided valuable help and support for which
the Members are very grateful.
3
Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Chairman’s Foreword
Introduction and Recommendations
New Departmental Structures
Export Trade Council and Cooperation with State Agencies
Global Irish Network and the Global Economic Forum
Emerging Markets
The “Ireland House” approach
Reputational Recovery
St. Patrick’s Day
Cultural Promotion
Innovation Ireland
International Peace and Security; Human Rights
Diplomatic Representation
Cooperation with the State Agencies
13.1 Inward Investment
13.2 Trade Promotion
13.3 Enterprise Policy
Cooperation with Private Sector Organisations
14.1 IBEC and IEA
14.2 Joint Arab-Irish Chamber of Commerce
14.3 Asia Matters
14.4 Chambers Ireland
14.5 British-Irish Chamber of Commerce
14.6 American Chamber of Commerce Ireland
14.7 “Green Ireland”: Irish Farmers Association
Joint Committee Visit to the United States
15.1 Consulate-General Atlanta
15.2 Consulate-General San Francisco
15.3 Visit to Texas
4
Chairman’s Foreword
From the start of our economic and fiscal crisis, the over-riding task of the Department of
Foreign Affairs and Trade has been the contribution it can make to recovery. The present
government, with the creation of the Export Trade Council chaired by the Tánaiste,
conferred additional responsibilities on the Department, and the Joint Committee wanted to
assess how the Department rose to the challenge, and whether its structures were adequate to
the task.
Specifically, we wanted to be sure that the unique resource offered by the Embassy network
was used to best effect, in association with the relevant State Agencies, in trade and tourism
promotion and in attracting foreign investment, as well as in restoring Ireland’s reputation.
We wanted to be sure also that the organisational structures at the Department’s Headquarters
provided the necessary support for this task, and were adequate to the Department’s new
responsibilities.
Over the past year and a half, we have engaged with a wide range of actors from the
Department itself, from the State Agencies, Chambers of Commerce, Employers’ and
Exporters’ organisations, and farmers’ representatives. Given the importance of the United
States as a source of investment, we have examined the operation of the Consulates there.
The task has given the members of the Joint Committee an excellent insight into the whole
process of economic promotion. It has also impressed on us the importance of reputation, for
which our Embassies have a special responsibility. We have also come to appreciate the role
of the Global Irish Network in fostering the international dimension of Ireland’s recovery.
Overall, I am glad to say that the Joint Committee’s investigations confirmed that the
Department of Foreign Affairs and Trade, following strategic adjustments, is well equipped
for its task, and that the Embassies are regarded as effective partners by the State Agencies
and the private sector in economic promotion. Our diplomatic network is much smaller than
those of many countries of comparable size and economic strength, and we have therefore
also considered whether the Department should add to its Mission network, in view of the
rapidly-changing global industrial scene.
We have, of course, been conscious throughout of the great importance that our citizens
attach to other responsibilities that the Department of Foreign Affairs and Trade has to fulfil
in pursuit of Ireland’s values and interests, for instance in the area of human rights and in
5
support of international peace and security. These activities are, I believe, important to Irish
people’s sense of themselves and of their place in the world, and contribute to Ireland’s
reputation among the international community. In no way therefore does the Joint Committee
suggest that this work should be in any way displaced or downgraded. In any event, I do not
believe that these tasks can be easily separated from the task of economic promotion, which
our Embassies have always pursued.
We have now exited the bail-out with our reputation restored, even enhanced, but a great deal
needs to be done to return the nation to a level of sustainable prosperity matching its
potential. The Joint Committee will continue to monitor how the Department of Foreign
Affairs and Trade contributes to this task and will work to ensure and that we have the kind
of diplomatic service that we need to support the nation’s values and interests.
Finally, on behalf of the Joint Committee, I wish to thank all those who assisted us by
generously giving of their time and knowledge to participate in our hearings.
___________________
Pat Breen TD
Chairman
Oireachtas Joint Committee on Foreign Affairs and Trade
6
OIREACHTAS JOINT COMMITTEE ON FOREIGN AFFAIRS AND TRADE
Report on the Contribution of the Department of Foreign Affairs and
Trade to Economic Recovery
1. Introduction and Recommendations
The Joint Committee’s central task is the scrutiny and evaluation of the Government’s
foreign policy including, in that context, scrutiny of the work of the Department of Foreign
Affairs and Trade. It therefore set out to examine the Department’s strategy and response to
the economic crisis, particularly in view of the new responsibilities in relation to trade
promotion conferred on it by the Government in 2011, and in light of the trade promotion
aspects of the Programme for Government. As part of this, the Joint Committee wished to
take into account the Department’s role in Ireland’s recovery, including its reputational
recovery, in the wake of the economic crisis.
The Government and DFAT adopted a number of strategies in response to the economic
crisis and to the Programme for Government, and the Joint Committee sought to explore the
implementation of these strategies and their contribution to recovery. These strategies
included the conferring of a trade promotion function on what had been the Department of
Foreign Affairs, the establishment of the Export Trade Council, the programme of Trade
Missions, the establishment of the Global Irish Network, as well as the Global Irish
Economic Forum, a strategic approach to St. Patrick’s Day activities, a more streamlined
structure of diplomatic Missions and their further orientation towards the promotion of
foreign earnings, the identification, in cooperation with state agencies, of priority markets,
Departmental restructuring, including the closure of certain diplomatic missions, and the
impact of the “first 100 days” Ambassadorial conference.
Given the importance of the United States as a trading partner and source of investment, the
Joint Committee’s examination involved at the outset a visit which focused on three Irish
Consulates, as well as business networks and industry representatives in the related Consular
areas. This visit yielded valuable information supplementing that gathered in meetings of the
Joint Committee.
The Joint Committee at the outset took careful note of the task set for his Department by the
Tánaiste in his Strategy Statement, in which he said that DFAT “will have the leading role, in
close cooperation with State Agencies, Irish business and the Global Irish Network, in
fostering the international dimension of Ireland’s economic growth.” It also had regard to the
Department’s own strategy statement, in which the Secretary General, David Cooney,
stressed that Ireland’s Embassies and Consulates were “a resource for the whole of
Government ……. and will be seen to deliver a significant contribution to the objectives
shared across Government”. He said that over the next three years the cooperation with State
7
Agencies and with other Government Departments at home and abroad, and with nongovernmental agencies and interest groups, would intensify, and structures would be put in
place to maximise the benefits to Ireland from all the resources that the Department employed
abroad.
The Joint Committee recognises that Ireland has a range of national interests to promote and
protect, as well as a range of responsibilities to fulfil as a member of the European Union, of
the United Nations and other international organisations and of the international community
generally, as encapsulated in the mission statement of the Department of Foreign Affairs and
Trade: “to promote and protect abroad the values, interests and economic well-being of
Ireland and its people”. The vigorous and competent attention to Ireland’s interests and
responsibilities, for which the Department has long been known, cannot be easily separated
from the promotion of economic interests abroad, which the Embassy network has always
pursued.
Nonetheless at the present time it is more important than ever that the Department and the
Embassy network are focused on Ireland’s trade, investment and tourism interests. This is
reflected in the enhanced role in trade promotion conferred by the present Government,
although, as stated by the Tánaiste in his address at the Ambassador’s Conference in 2011,
this role was in part recognition of the valuable contribution the Embassy network had been
making to economic recovery.
In this context the Joint Committee recommends as follows:
i.
ii.
iii.
iv.
v.
The current over-riding priority of the Department of Foreign Affairs and Trade should
remain the contribution it can make to the Government’s agenda of renewed and
sustainable economic growth by using the strength of the Embassy network as a platform
for trade promotion and for promoting inward investment by spreading knowledge about
Ireland’s strengths in innovation and in key industrial sectors.
The restructuring of DFAT to include a Trade and Promotion Division has better
equipped the Department to engage effectively in foreign earnings promotion in
cooperation with the relevant state agencies. The structure should be kept under review.
The Export Trade Council, chaired by the Tánaiste, has proved an effective instrument in
identifying priorities and ensuring high-level overview of the performance of state
agencies. In that context, DFAT and the state agencies should continue to cooperate and
collaborate as closely as possible to maximise exports, inward investment and inward
tourism in the interest of economic growth and recovery.
Industry and exporters’ representatives reported a very positive experience of the work of
the diplomatic service and welcomed the conferring of additional responsibilities on it in
relation to trade.
The involvement of members of the Global Irish Network, coordinated by DFAT, in trade
missions and other forms of promotion is greatly to be welcomed. The Network should
be engaged to optimum effect in trade and investment promotion, and the Joint
Committee welcomes the establishment of an advisory group to steer its activities. It
8
vi.
vii.
viii.
ix.
x.
xi.
notes that many members of the Network acted as advocates in this year’s major and
highly successful tourism promotion, The Gathering.
The restoration of Ireland’s economic reputation, the reinforcement of confidence
worldwide in Ireland’s economic recovery and the consolidation of Ireland’s international
standing must remain a central part of the activities of DFAT. The Joint Committee
greatly appreciates the work done in this area by the Embassies under the direction of the
Economic Messaging unit of the Trade and Promotion Division, in cooperation with other
Government Departments and the State Agencies.
St. Patrick’s Day celebrations, which now take place almost worldwide, provide a unique
and ever-growing opportunity for reputational and economic benefit, and should continue
to be used to the full.
Given the current slow-growth environment generally among Ireland’s traditional trading
partners, the opportunities for foreign earnings in the rapidly-growing and high-potential
markets should be grasped. Because of the importance of government-to-government
relations in many emerging market countries, and the confidence generated by association
with an Embassy, DFAT should consider establishing new Embassies or Consulates in
such markets where appropriate and as resources permit. Djakarta seems a priority in this
regard, along with Bangkok. Consideration might be given to other high-potential
locations in Asia, including Manila, according as resources permit.
At the same time, Ireland’s traditional economic partners, even if currently slow-growing,
remain of very great importance – total trade with the UK is worth some €56 billion
annually – and investment from the US has continued to grow through the downturn, now
accounting directly for some 115,000 jobs. The Department should ensure that the
Embassy network, in association with the State Agencies, has the resources to support
continued economic promotion in these markets.
The overriding importance of the US as a source of foreign direct investment means that
the network of Consulates-General, supplemented by the Honorary Consuls, should
continue to be kept under review. New regions of the US become centres of industry, and
therefore sources of investment, over time. The establishment of a Consulate-General in
Atlanta was appropriate in this context, and the establishment of a further ConsulateGeneral in Texas, in Houston or in Austin, given the increasing economic importance of
the State, would also be appropriate.
Defence of the 12.5% corporation tax rate, and ensuring that Ireland’s policy and practice
in relation to corporate taxation is fully and accurately understood internationally, must
remain a central part of the work of DFAT and the Diplomatic Missions.
2. New Departmental structures
2.1 The Secretary General at the beginning of 2012 implemented a restructuring aimed at
sharpening the Department’s focus on trade promotion in key country and regional markets.
This involved the establishment of a Trade and Promotion Division, divided into two parts.
The first part is concerned primarily with trade promotion, including servicing the Export
Trade Council, coordination and liaison with other State Agencies, government Departments
9
and the private sector on trade, tourism and investment promotion and Joint Economic
Commissions. The second part concentrates on economic messaging, ensuring that accurate,
up-to-date and comprehensive information about Ireland is disseminated through the
Embassy network and made available to foreign media, economic actors and Governments.
The Division is also responsible for ensuring that its trade, tourism and investment promotion
efforts are coherently integrated into the work of all units of the Department and the entire
Embassy network. The Department is also guided by the Government report Trading and
Investing in a Smart Economy: A Strategy and Action Plan for Irish Trade, Tourism and
Investment to 2015.
2.2 There is now a single point of contact at headquarters for each of our Embassies across
the range of sectors in which they are active, with new regional entities established to cover
all aspects of relations with individual countries, including trade promotion. These entities
are the Europe Division, the Middle East and North Africa Unit, the Asia-Latin America
Unit, the Africa section within the Development Cooperation Division, and the UK and North
America units within the Anglo-Irish Division. The Trade and Promotion Division liaises
with the State Agencies, and works closely with the geographic units and other units,
including the Irish Abroad unit and the Press Section. The Joint Committee welcomes these
arrangements which not only provide for an integrated treatment of economic, political and
other issues but also respond better to current resource pressures.
3. Export Trade Council and Cooperation with State Agencies
3.1 The Export Trade Council, chaired by the Tánaiste and serviced by the Department of
Foreign Affairs and Trade, oversees implementation of the strategy and meets twice a year at
high level, with the involvement of the relevant Ministers, and senior officials, the CEOs of
Enterprise Ireland, IDA Ireland, Bórd Bia, Tourism Ireland, Culture Ireland and Science
Foundation Ireland, as well as a number of private sector representatives, including from
IBEC and the Irish Exporters Association. Preparatory meeting at official level take place in
between the high-level sessions. The Council ensures high-level overview of the targets of
the State Agencies and the extent to which they are achieved.
3.2 Under the trade strategy, priority markets have been identified, in mature economies as
well as in emerging economies such as the BRIC countries (Brazil, Russia, India, China).
Local market teams have been established drawn from Embassies and State Agency offices to
lead and coordinate activity, under the chairmanship of the Irish Ambassador. These teams
draw up annual market plans and report on them to the Export Trade Council through the
Trade and Promotion Division of the Department of Foreign Affairs and Trade. The principal
focus of these market plans is on areas where a co-ordinated Embassy and State Agency
approach is likely to yield best results.
3.3 The Department’s enhanced responsibilities in respect of trade promotion require it to
work even more closely with Enterprise Ireland on its annual programme of ministerial Trade
Missions and other trade events. Eighteen Trade Missions have been mounted in 2013 and a
10
comparable number are planned for 2014. These Missions are led at political level, by the
Tánaiste, the Minister of State for Trade and Development, the Minister for Jobs, Enterprise
and Innovation or other Ministers. The Joint Committee particularly welcomes the fact that it
has become normal practice to include a strong trade, tourism and investment promotion
element in all bilateral visits led by the Taoiseach, the Tánaiste, and the Ministers of State for
Trade and Development and for European Affairs, and that they are often accompanied by
representatives of Irish companies.
4. Global Irish Network and the Global Irish Economic Forum
The Global Irish Network now has about 350 members, and the Global Irish Economic
Forum has met three times. The Export Trade Council in February 2012 decided to involve
members of the Global Irish Network, as appropriate, in trade missions and ministerial visits,
and notes that members of the Network are engaged with Enterprise Ireland client companies
and that many of them have agreed to be advocates, in a wide range of sectors in the export
and investment areas, as well as for this year’s major tourism initiative, The Gathering.
5. Emerging Markets
The Joint Committee notes that in a number of emerging markets, such as China, Russia,
South Korea and Saudi Arabia, government to government contact remains important for the
development of bilateral trade and economic relations generally, and for cooperation in such
sectors as scientific research. It is appropriate that, following the transfer of trade promotion
functions, the Department of Foreign Affairs and Trade holds lead responsibility for Joint
Economic Commissions which meet usually at two-year intervals, acting, of course, in close
cooperation with relevant Government Departments and State Agencies. While the Joint
Economic Commission model may not be appropriate to most or even many markets, where
they exist they should be availed of to the extent possible to achieve practical results.
6. The “Ireland House” approach
The Joint Committee encourages co-location by Embassies and State Agency offices – the
“Ireland House” approach – which reduces costs and produces valuable synergies,
strengthening the Ireland brand. This is not, of course, possible in those countries where the
administrative capital is not a major commercial centre. In these cases, the Ambassador and
other Embassy staff should maintain the practice of travelling regularly to the main centres of
economic activity and raise Ireland’s profile with the local media, major enterprises and
Chambers of Commerce, and convene meetings of the local market teams in them.
11
7. Reputational Recovery
7.1 The reinforcement of confidence worldwide in Ireland’s economic recovery, and the
restoration of its standing as a respected and influential member of the European Union and
of the international community generally is a matter of great importance to the Joint
Committee, and was the subject of a special conference of Ireland’s Ambassadors in 2011.
Economic messaging abroad is of key importance, requiring close cooperation with Strategic
Communications Unit established in the Department of the Taoiseach, and with the
Department of Finance, where two officers of the Department of Foreign Affairs and Trade
officers are seconded for that purpose. The Joint Committee notes that the active reputational
and economic messaging carried out through the Embassy network is supported by an
intranet economic information site that it updated with daily alerts, including statements by
the Taoiseach, Tánaiste and other Ministers, detailed briefing material from the Department
of Finance, the Central Bank, the NTMA and the CSO, as well as a range of targeted
messages, including video clips, from the State Agencies, for active diffusion through the
Embassy network. The Joint Committee is pleased to note that much of this messaging
material is shared through a dedicated channel with members of the Global Irish Network. It
favours the inclusion of all messages, not necessarily confined to Government or official
material, that will serve to promote economic and reputational recovery.
7.2 The suitable placing of opinion pieces in prestigious international publications, and the
giving of interviews to key print and broadcast media, by the Taoiseach, the Tánaiste and the
Minister for Finance, is a key part of economic messaging. The Embassy network, with
support from the Department, has been active in facilitating the appearance of such pieces
and interviews in appropriate media and this work should continue, and Embassies should
keep in close contact with editorial boards to ensure that they have an accurate and
sympathetic understanding of Ireland’s situation and of the positions of the Irish Government.
The Embassy network must also be ready to react quickly and appropriately to potentially
negative publicity, as the Embassy in Berlin notably did following the emergence of the
“Anglo tapes”.
8. St Patrick’s Day
The St. Patrick’s Day period has long offered an opportunity for reputational and economic
benefit, and should be used to the full. The tradition of Ministers travelling to priority centres
worldwide has over the years proved a highly valuable means of exploiting the unique profile
of Ireland’s National Day and, most importantly, of energising the Irish diaspora and the
Global Irish Network. Especially noteworthy is the extent to which the celebration of St.
Patrick’s Day has in recent years become an event in city calendars in many countries,
enlivened by Irish-related cultural and promotional events, and is no longer confined to the
historic centres of the Irish diaspora. The present approach to St. Patrick’s Day should
therefore continue, with judicious and targeted preparation by the Department of Foreign
12
Affairs and Trade and the Embassies, in close cooperation with the State Agencies and their
offices abroad, including with Culture Ireland.
9. Cultural Promotion
The Joint Committee notes that the Head of the Trade and Promotion Division of the
Department serves ex officio on the Expert Advisory Committee of Culture Ireland, and that
the Division itself can support small-scale cultural events. This is clearly advantageous in
that it exploits the synergy between trade, tourism and investment promotion on the one hand
and culture on the other. Ireland is fortunate in having cultural traditions, particularly in
literature, music and dance, that resonate worldwide, and that Irish Studies courses are
popular in University curricula, giving it a “soft power” of the kind that many larger nations
might envy. Increased knowledge and appreciation of Irish culture will redound to the
benefit of Irish writers, artists and performers, raise the profile of Ireland as a stimulating
country to visit, and reinforce the image of Irish young people as well-educated, lively and
adaptable.
10. Innovation Ireland
This applies also to the Department’s cooperation with Science Foundation Ireland. To
attract the kind of investment that produces high-quality jobs, it is vital that Ireland has a
reputation for research excellence. The Innovation Ireland brand should therefore be
strengthened and the Embassies should work closely with Science Foundation Ireland on this
project. The success of the Euroscience Open Forum held at the National Convention Centre
in July of 2012 was a particularly welcome in this context.
11. International Peace and Security; Human rights
Notwithstanding the sharper focus on the role of the Department on trade and promotion, the
Joint Committee does not wish this to be at the expense of its longstanding contribution to
international peace, security and human rights. It was pleased in particular to receive
assurances that the Department’s Human Rights Unit has not been adversely affected by
Departmental restructuring and retains the same resources as before. That Ireland’s retains its
strong reputation in this area was made abundantly clear by its election this year to a threeyear term on the United Nations Human Rights Council in the face of very stiff competition.
12. Diplomatic Representation
12.1 The Joint Committee recognises that the effectiveness of the Department of Foreign
Affairs and Trade in promoting Ireland’s economic interests cannot be measured in the same
13
way as that of the State Agencies, which have precise targets to meet. Rather, it provides a
platform that assists the State Agencies in achieving their targets. The Joint Committee notes
the good relations that exist between the Department and the State Agencies, as reported by
witnesses, and encourages them to foster and develop these relations even further.
12.2 It is conscious of the fact that Ireland’s diplomatic representation, comprising 58
Embassies and 10 consulates, in addition to the seven multilateral missions, is thin in
comparison to that of other countries of comparable size and economic interests, and also that
Diplomatic Missions in general are lightly manned. It recognises that current resource
constraints make this difficult to address, but there are countries that have emerged as
powerful economies in recent years, Indonesia being an obvious example. Likewise in the
United States, which is by far the most important source of foreign investment as well as an
enormous market, there have been significant changes in regional economic weight. The
latter has been recognised by the establishment of a Consulate-General in Atlanta, but there is
still no consulate in Texas, which is now the second most populous state as well as being an
increasingly important market and source of investment. As soon as resources permit,
therefore, consideration should be given to strengthening our network of diplomatic missions,
with priority for an Embassy in Djakarta as well as elsewhere in Asia, for instance Bangkok,
and Manila in due course, and for a Consulate-General in Houston.
12.3 The network of Honorary Consuls also performs a very valuable role worldwide,
providing the benefits of local representation in a very cost-effective way, at little or no cost.
Consideration should be given to expanding it, particularly in the United States where there
are at present nine Honorary Consuls but where there are other cities where we have no
representation which are important centres of Irish-American population as well as
significant economic centres.
13. Cooperation with the State Agencies
13.1 Inward Investment
13.1.1 Effective representation abroad is especially critical to the task of the Industrial
Development Authority in attracting foreign direct investment, given that foreign
multinational companies spend about €19 billion in the economy annually, of which about €7
billion is payroll spending, and are responsible for approximately 250,000 jobs, account for
two-thirds of all corporation tax and two-thirds of all business expenditure on research and
development, and generate about €115 billion in exports. Representation is especially critical
in the United States, given that US firms account for half of the IDA’s portfolio of some
1,000 companies and are responsible for about 70% of the economic impact.
13.1.2 As far as investment is concerned, the Joint Committee recognises that representation
strategy overall will be guided by judgements regarding which sectors currently have or
promise strong growth prospects. In that respect, four sectors, according to the IDA, are key:
the life sciences, information and communications technology (ICT), international financial
14
services and digital media and digital content. It also notes the importance of identifying
promising technology companies that are in an early stage of development, and that 40 such
companies have come to Ireland since the IDA initiated a programme to attract them in 2009.
It appreciates also that in addition to the very well-known companies, such as Apple, IBM,
Intel, Google, etc., the IDA is targeting smaller companies that may not be household names,
but still possess assets of between €100 million to €750 million, and that investment is
increasingly coming from them.
13.1.3 Given the economic headwinds that have existed over the past few years, especially
the flatness of demand in Europe, and given also that 80 per cent of all foreign direct
investment in Ireland is to service the European market, it is remarkable that the level of
investment has not only been maintained but increased. In the US, the network of IDA
offices is clearly doing an excellent job, backed up by the Embassy in Washington and the
Consulates-General in New York, Chicago, Boston, San Francisco and Atlanta, and
supported from time to time by visits by the Taoiseach and the Tánaiste. Outside of the US,
the Embassies play a key role in supporting and validating the work of the IDA, and there is
extensive engagement with them: with Embassy events and Ambassadors’ residences acting
as venues to which key decision-makers can be attracted. In investment markets such as
Japan, China, Korea and India, given the cultural approach to business, the brand of an
Embassy can be of great assistance in getting one-to-one meetings with executives, and
though evidence indicates that there are excellent working relationships with the relevant
Embassies, there may be a need to develop links further, particularly as this appears to be a
challenging market, where Ireland does not have the same brand recognition as it does
elsewhere. Missions led at political level have proved very useful in these markets and should
be continued.
13.1.4 Promotional efforts, however, do not take place in a vacuum. First, they require a
solid base of conditions from which to operate, and this requires a national effort. The
availability of talent and skills, technological capacity, ease of doing business,
competitiveness, the professionalism of our regulatory agencies, investment in research and
development, world-leading sectoral clusters, EU access, the corporation tax rate, adequate
supplies of water and energy, economic and political stability, all these contribute to the
attraction that the country exercises for investors, and make up the promotional arsenal of
diplomatic missions as well as of the IDA. Major efforts by a range of Government
Departments and agencies underpin the case that the IDA overseas offices, supported by our
Embassies, are able to put to prospective investors.
13.1.5 In addition, promotion must be supported and supplemented by careful attention to the
country’s reputation. As this has sustained damage due to the economic crisis, it is more
important than ever that Ireland’s performance in respect of the above-mentioned factors is
sustained and improved, and that confidence in the soundness of Ireland’s fundamental
economic model is not only restored but enhanced. Economic messaging in support of
investment promotion must therefore remain a key function of the Department of Foreign
Affairs and Trade, in close cooperation with the Department of the Taoiseach, the
Department of Jobs, Enterprise and Employment, and the Department of Finance.
15
13.1.6 The Joint Committee was pleased to hear evidence that the reputational damage that
Ireland sustained during the economic crisis began to wane in most investment markets,
particularly in the US, in early-to-mid 2011, though the effect may be more intractable in
Asia, where differentiating Ireland from other European countries is not easy.
13.1.7 The Joint Committee considers that the Irish Diaspora contains many people of
experience and achievement across a wide range of sectors who can be of assistance in
helping to open doors and direct investors to consider Ireland as a location. The
establishment of the Global Irish Network, and the Global Irish Economic Forum, which has
now met three times, is greatly welcomed by the Joint Committee, and it considers this aspect
of the work of the Department of Foreign Affairs and Trade to be of considerable potential in
promoting investment.
13.1.8 Information-sharing between the IDA and the Department is particularly important if
diplomatic personnel are to participate to full effect in investment promotion. Overall, the
Joint Committee was satisfied, on the basis of evidence heard, that the relationship between
the IDA and the Department of Foreign Affairs and Trade is very good. It welcomes the fact
that an IDA staff member is seconded to the Department to assist in interaction between the
two organisations, and that a Department official is reciprocally seconded to the IDA.
13.2 Trade Promotion
13.2.1 Given the transfer of specific trade promotion functions to the Department of Foreign
Affairs and Trade, cooperation with Enterprise Ireland is essential, given EI’s mission which
is to partner with Irish businesses and entrepreneurs, and with the research and investment
communities, in developing Ireland’s trade and fostering innovation, leadership and
competitiveness. EI’s client companies, i.e. the so-called “indigenous sector”, directly
employ some 165,000 people and indirectly support more than 300,000 jobs. Despite the
economic difficulties of recent years, exports from this sector have continued to increase.
Engineering and construction were particularly affected by the recession and EI has been
engaged in helping companies in this sector to internationalise their operations. Also, EI has
been working with companies to develop their capacities, including by offering access to the
latest research in their sectors, and to enhance their competitiveness to make them better able
to compete in the international marketplace. As a result, there are more indigenous
companies than ever before exporting from Ireland.
13.2.2 EI has a network of 30 overseas offices located in key target international markets,
which provide a range of services to companies, including market knowledge on a sectoral
basis, introductions to buyers, suppliers and potential partners, market intelligence including
competitor analysis, identification of suitable suppliers of professional services, information
on regulation, etc. The Chief Executive of EI attends meetings of the Export Trade Council,
which is charged with ensuring a collaborative approach to building Ireland’s trade base.
Working with the Departments of Foreign Affairs and Trade and of Jobs, Enterprise and
Innovation, it mounts Trade Missions led at political level. A Trade Mission programme is
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discussed with the relevant Departments and State Agencies before the beginning of each
year and agreed in the Export Trade Council. EI also participates actively in the Global Irish
Economic Forum, which exploits the Global Irish Network to maximise benefits to the Irish
economy.
13.2.3 The Joint Committee was pleased to hear evidence that the working relationship
between Enterprise Ireland and the Department of Foreign Affairs and Trade is a strong one
at all levels and in overseas markets, as it should be.
13.2.4 In Ireland, the two organisations interact on a regular basis in a wide range of areas,
including trade missions and trade events, joint economic commissions, economic messaging,
compiling annual plans for each priority market, and in other areas as the need arises.
Overseas, EI is co-located with Irish Embassies or Consulates in 24 out of 30 office locations.
There is strong collaboration in individual territories between the EI team and the relevant
Embassy or Consular office in areas such as information sharing, establishment of priorities
and the appropriate focus of activities in particular markets, coordination of trade promotion
activities, leveraging the Global Irish Network or other networks, establishing of priorities for
the Joint Economic Commissions which Ireland has with four countries, organising
Ministerial visits and Trade Missions, and seeking to influence the direction of local policy
discussions where there are real barriers to growth in bilateral trade. Collaboration on
messaging and reputational issues in markets such as China is particularly important in the
promotion of services such as education.
13.2.5 In short, Enterprise Ireland collaborates closely with the Department of Foreign
Affairs and Trade, and considers this essential for the achievement of Ireland’s full potential
in international markets and to sustain and support new jobs in Ireland.
13.3 Enterprise Policy
13.3.1 Ireland is one of the most open economies in the world, with exports and imports
together accounting for some 190% of GDP. Internationally trading businesses are therefore
central to the economy, particularly so in recent years, when exports have been the only
contributor to GDP and GNP growth, remaining resilient in the face of global recession. A
sound approach to support for enterprise, based on evidence-based research and analysis, is
therefore of great importance to the economy, and it is the responsibility of Forfás, at the
national policy level, to undertake such research and provide the necessary advice to
Government and the other agencies. Forfás also manages the work of and provides research
and analytical support to the National Competitiveness Council, the Advisory Council for
Science, Technology and Innovation and the Expert Group on Future Skills Needs. The Irish
National Accreditation Board is a division of Forfás which also hosts the Office of the Chief
Scientific Adviser to the Government.
13.3.2 The Joint Committee considers that enterprise policy has a key role in furthering
competitiveness and productivity which is essential for a successful export sector and
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economy generally. Forfás works across a range of economic departments and agencies and
with private stakeholders to improve the competitiveness of the environment for business
which impacts directly and indirectly on enterprise development.
13.3.3 According to evidence heard, there are strong links between enterprise policy and
trade policy, as well as between these and trade promotion activity. Over the years, Forfás,
which is a member of the Export Trade Council, and works closely with its Secretariat in the
Department of Foreign Affairs and Trade, has investigated and reported on a wide range of
issues relating to international trade and Ireland’s enterprise policy. Current projects include
the development of economic partnerships, with particular emphasis on China, identifying
means of reducing costs associated with exporting, the revision of strategies towards highgrowth and emerging markets, and considering horizontal policy issues, including those
relating to access, visa reform, air connectivity, fiscal and finance measures and brand and
reputation building.
13.3.4 The Joint Committee believes that the centrality of enterprise policy overall is
illustrated by the fact that collectively the client enterprises of the relevant agencies, i.e.
Enterprise Ireland, IDA Ireland, Shannon Development and Udarás na Gaeltachta, employ
around 330,000 people directly in manufacturing and in internationally traded services, with a
similar indirectly employed as a result. They account for almost 80% of exports and over
70% of tax payments to the Exchequer. For these enterprises to continue to be successful,
Ireland needs to become more competitive and the enterprises themselves more competitive
and productive.
13.3.5 Securing a competitive business environment in support of export growth and
productive investment is one of the main objectives of the Government’s 2012 Action Plan
for Jobs. The Joint Committee believes that trade promotion policy should be aligned with
the ambitious targets and objectives of the Action Plan and that the various agencies,
including the Department of Foreign Affairs and Trade, should work closely together in
pursuit of them.
13.3.6 The Joint Committee welcomes the publication last year of the report Key Skills for
Enterprise to Trade Internationally and looks forward to its speedy implementation.
13.3.7 The Joint Committee notes with satisfaction that overall, exports of goods and services
now exceed pre-crisis levels, though there has been some recent weakness in merchandise
exports due mainly to the patent cliff. It also notes also that merchandise goods exports,
while growing in volume terms, have not increased in price terms over the past decade.
Increases in volumes are required but, more critically the value of Ireland’s exports must
increase. New investment in manufacturing to produce higher-value exports should therefore
be promoted.
13.3.8 The Joint Committee notes that the US and UK continue to account for one third of
Ireland’s exports, resulting in a high exposure to currency fluctuations. This highlights the
need for continued development of Eurozone markets and diversification also to other
markets. It is acknowledged that a state presence is not possible in all markets, and servicing
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existing markets for trade tourism and investment while at the same time targeting new high
growth markets, and doing this within constrained resources will be a challenge. At the level
of individual markets, therefore, objectives and targets must be clarified and the activities all
State bodies should be aligned to these. Where State Agencies and the Department of
Foreign Affairs and Trade have a presence in markets, they should as far as practicable, work
in concert in pursuit of the collective objectives identified.
14. Private Sector Organisations
14.1 IBEC and IEA
14.1.1 The Joint Committee heard evidence that the Irish Business and Employers
Confederation (IBEC) and the Irish Exporters Association (IEA) welcomed the additional
responsibilities in relation to trade that were attached to what was previously the Department
of Foreign Affairs. They welcomed the creation of the Export Trade Council and are
participating actively in it, in partnership with the CEOs of several of their member
companies. They believe that there is now a greater general understanding of the position of
the various private and public sector elements that make up the Council.
14.1.2 IBEC and its sectoral associations, according to the evidence, greatly value the role
played by Irish Ambassadors and Embassy staff in, inter alia, helping to solve market access
issues, coordinating and supporting Trade Missions (to which they attached much
importance, particularly when led at political level) and supporting the work of other
agencies. They welcomed the development of an “Ireland Inc.” approach, with all the
agencies and the Embassy staff, led by the Ambassador, working together. Overall, their
members had a very positive experience of the help received from the agencies and
Embassies.
14.1.3 The IEA witnesses stressed the importance of support from Embassies and the
agencies when fledgling companies are seeking to make inroads into new markets, and of
having people on the ground. They perceived a need for further emphasis on the Asia region,
and for additional Embassy and agency resources to be concentrated there. Acknowledging
the strain on resources in present circumstances, they maintained that if resources have to be
reduced, it should not affect frontline forces such as Embassies and field supports for
Enterprise Ireland and IDA Ireland. More Embassies and promotional staff were required,
with perhaps a redeployment from Europe, where our Missions were concentrated, if
necessary. The redeployment of staff from Dublin HQs should also be considered.
14.1.4 The IEA welcomes the Department of Foreign Affairs and Trade Africa Strategy,
given the new stability on the continent and the rapid phase of development on which it has
entered. A detailed proposal on such a strategy had been made the Export Trade Council,
which pointed to the fact that Ireland has a significant Embassy structure in Africa as a result
of the Irish Aid programme, in contrast to the situation that obtains in Asia. The lack of an
Embassy in Indonesia, despite the large and growing opportunities there, was regrettable.
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14.1.5 IBEC and the IEA also referred to the difficulties that arose from the visa regime for
business people, as well as for students and tourists, and referred to ongoing efforts to
establish a more streamlined process. The IEA also pointed to the need to make the bilateral
Economic and Trade Commissions function where they remain relevant, in particular with
Russia.
14.1.6 Other factors mentioned as of importance included the need for efforts to help Irish
sectors firms to secure tenders for work from the multilateral agencies such as the World
Bank and the Asian and African Development Banks, and the need to exploit the success of
champions such as Kerry Group and Glanbia to help smaller firms gain entry to markets
abroad. They also favoured the further implementation of the “Ireland House” concept,
which could be used also to showcase prestige Irish products.
14.1.7 The employers and exporters’ associations also pointed to the centrality of the 12.5%
corporation tax to the economy, and the need for the agencies and Embassies to defend it and
ensure that its transparency and fairness was understood abroad.
14.2 Joint Arab-Irish Chamber of Commerce
The Joint Arab-Irish Chamber of Commerce also pointed to the need to raise Ireland’s profile
in the Arab world, stating that Ambassadors were very important for business in the region.
It noted that Ireland had only three Ambassadors in the region, each of whom had several
secondary accreditations to service. The visa regime should be further addressed to remove
constraints on business and tourist travel.
14.3 Asia Matters
14.3.1 The organisation Asia Matters also pointed to the importance of the visa regime,
noting that Paris had been receiving more than ten times the number of Chinese visitors than
London because of the less onerous French visa regime, with attendant impact on Ireland as
part of the Common Travel Area. The recent easing of the regime for Chinese visitors was,
however, greatly appreciated. Asia contains most of the largest cities in the world, which has
great implications for future growth, economic opportunity, export potential and Irish trade
policy in this century. The Asia Development Bank expected it to double its share of global
GDP to 52% by 2050. Purchasing power remained strong in Japan and was growing in
China. It was important for Ireland to be branded as an integral part of Europe and a trusted
business partner in Asia. The reciprocal visits by the Taoiseach and Asian leaders in 2012,
including reciprocal visits by the Taoiseach and the then Vice-President Xi Jinping (now
President), were very timely.
14.3.2 While there were many countries in Asia and elsewhere deserving of attention, Asia
Matters maintained that it cannot be ignored that Indonesia is the fourth most-populated
country in the world, with 242 million people, 19 million of them in the capital Djakarta. It
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spends 20 per cent of its state budget on education and is engaged in a determined effort to
place its people on the road to prosperity. It is currently the 16th largest economy, and by
2030 is expected to become the 11th and the 8th by 2050. It should be a candidate for the
opening of an Irish Embassy, preferably in conjunction with state agency offices, as soon as
conditions permit, with the Philippines following in due course. According to Asia Matters,
Asia might be seen as a “third opening”, after the EU and the US. A direct air link would
also be important.
14.4 Chambers Ireland
14.4.1 Chambers Ireland said it was uniquely placed to assist the Department of Foreign
Affairs and Trade in assisting Ireland’s recovery. On commercial diplomacy, Chambers said
that DFAT has a strong record on economic diplomacy, with effective briefing of
international media and opinion formers on our progress to date and at all stages through the
cycle of the part four or five years. Ireland had a very small diplomatic network, but
changing times required new priorities; the commercial side of the Department’s work should
therefore be given higher priority. There needs to be a more formal reallocation of workloads
and resources to support the trade and commercial work undertaken by HQ and Missions.
14.4.2 Prioritising targets meant that activities and resources should be focused on regions
that have the potential to be commercially important for Ireland. Close collaboration with
representative of industries is required, and joint approaches might be made using the good
offices of DFAT to open doors. There is also need for a one-stop shop website for exporters.
The unique resource represented by St. Patrick’s Day was very important.
14.5 British-Irish Chamber of Commerce
14.5.1 The British-Irish Chamber of Commerce said in evidence that in preparing its
submission to the Joint Committee it had canvassed its members who stated clearly that they
believe the Department of Foreign Affairs and Trade had been proactive and innovative in
helping to stem the effects of the global economic crisis. They believe it had adapted quickly
to incorporating trade promotion into its activities, similarly with the approach developed in
the UK.
14.5.2 In the development of trade promotion policy the UK cannot be taken for granted,
given that trade with the UK is worth €14 billion a year; Tesco, for instance, takes 20% of all
Irish agricultural output for its supermarkets. The UK market is also of particular importance
to the Irish indigenous small and medium-sized companies. The promotion agencies and
DFAT should therefore take care to ensure that they have the resources to maintain and grow
Ireland’s share of the UK market, particularly in view of the volatility of the pound sterling
against the euro. The campaign to remove the UK from the EU, and the prospective
referendum on that issue, is a matter of major concern, as it could have a very serious impact
on Irish-British trade, as well as on other bilateral relationships. Ireland therefore has a major
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interest in ensuring that British public understands the benefits and opportunities associated
with Europe and that all political actors, as well as the public, understand the impact that UK
withdrawal could have on Ireland. This must be a priority for DFAT and the Embassy in
London and in Edinburgh in the period immediately head.
14.6 American Chamber of Commerce Ireland
14.6.1 Evidence from the American Chamber of Commerce Ireland served to remind the
Joint Committee that no agency involved in trade and investment promotion can afford to
ignore the fact that the community of c. 700 US firms in Ireland directly employs 115,000
people, accounting for over 70% of all IDA-supported employment. Direct investment from
the United States has continued to flow during the recession, and now stands at an historic
high of c. $200 billion, higher than the combined US investment in the BRIC countries.
Employment in US businesses in Ireland has increased by an estimated 15% since 2007. The
current decade, in fact, commenced with a surge in US investment, indicating continuing
business confidence in Ireland, and indicating also that there has been no shift in geographic
preference of US FDI, which remains directed towards Europe in general and Ireland in
particular. It is also noteworthy that subdued growth has not altered how US firms prefer to
compete overseas via FDI rather than through traditional trade.
14.6.2 The economic and social benefits that all this brings to Ireland is best illustrated by the
fact that the total output of US firms, c. $58 billion, accounts for over a quarter of Ireland’s
GDP and contributes around €3 billion to the Exchequer in total taxes, with a further €14
billion in expenditure in the Irish economy in payroll and in the purchase of goods and
services. This is, however, a two-way relationship and Irish firms have a total investment of
$25 billion in the US.
14.6.3 The economic relationship between Ireland and the United States remains, therefore,
unique in Europe and is a strength from which the two countries benefit extensively. Despite
the acknowledged focus on emerging markets, the bond with the US should continue to be
tended and nurtured.
14.6.4 According to the Chamber, it is keenly aware of how important Trade Missions,
ministerial visits, the work of IDA Ireland and the openness of senior Cabinet Ministers to
meet its members have been in restoring Ireland’s reputation in American boardrooms.
Ministers and senior Oireachtas members have a positive impact on senior decision makers
when they invest time and energy in meeting investors. The Department of Foreign Affairs
and Trade, working with IDA Ireland, has an important role to play in scheduling such visit
programmes, coordinating the detailed logistics and providing quality briefs for Ministers and
visitors that ensure a positive impression of Ireland. It greatly appreciates the responsiveness
of the Department and of the Embassy of Ireland in Washington.
14.6.5 In the view of the Chamber, areas vital to Ireland’s continued economic and social
recovery should be prioritised. This would include the Department’s network in the United
22
States, as well as continuing where possible to house state agency offices alongside DFAT
staff. The Department should ensure that is staff had the correct skills to allow them to
understand and empathise with the business world, and should consider placing
commercially-experienced executives into Missions.
14.6.6 The Chamber considers that any change in the commitment to the 12.5% corporation
tax would be catastrophic. The State and its representatives should ensure that Ireland’s
corporation tax policy is understood and defended, in particular as regards Ireland’s effective
rate compared to that of other countries, and the fact that Ireland gains a higher percentage of
its revenue from its corporate base than other countries.
14.6.7 The Chamber also stressed the importance of concluding the US-EU Transatlantic
Trade and Investment Partnership. With the two markets comprising some 60% of the
world’s GDP and accounting for roughly the same proportion of the world’s research and
development, the deal offered the prospect of adding a percentage point to economic growth
and up to a half-million jobs in Europe, with Ireland strongly benefiting as a gateway to the
EU-US relationship.
14.7 “Green Ireland”: Irish Farmer’s Association
14.7.1 According to UN projections, the world population will grow to 9.6 billion by 2050.
World food production will have to increase by at least 60% by then. This offers a major
opportunity for Ireland’s food producers. Ireland’s agricultural exports are mainly driven by
the beef and dairy sectors, with sheep, pigmeat and horticultural products also very important.
Ambitious production and export targets have been set by the agrifood sector, and these
targets are being met or exceeded.
14.7.2 According to the IFA, the diplomatic service has a “hugely important” role to play in
trade promotion and securing market access. The agricultural attachés, who have an in-depth
knowledge and understanding of the agrifood sector, are particularly important in dealing
with market access and the crucial issue of veterinary certification, and the Embassy structure
is very important in facilitating access to customers for commercial food companies, in
support of the efforts of Bórd Bia.
14.7.3 Ireland meat production is low-cost and grass-based, which confers a significant
comparative advantage, particularly in view of the challenge of sustainability, which will
become an increasingly important preoccupation of both policymakers and consumers. A
number of initiatives are being developed to capitalise on Ireland’s green image, and Bórd
Bia has developed a sustainability charter, “Origin Green”, to help Irish food and beverage
producers to drive their exports. The Irish diplomatic service has a crucial role to play in
supporting this green and sustainable image, including through public diplomacy.
14.7.4 The IFA is also concerned that Irish diplomacy should work to ensure a level playing
pitch and equivalence of standards, and that any trade agreements concluded with the US or
others do not undermine the competitiveness of Irish food production.
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15. Joint Committee visit to the United States
15.0.1 Because of the importance of effective diplomatic representation in the United States,
especially given its importance as a source of investment, a delegation from the Joint
Committee visited three of the diplomatic missions in the US to gain perspective on their
work in economic promotion and their cooperation with the local state agency offices.
15.0.2 Currently there are six Irish diplomatic missions in the US – the Embassy in
Washington, and the Consulates-General in New York, Boston, Chicago, San Francisco and
Atlanta.1 The first four of the Consulates are of long standing and were established because
the cities in question were historically the most important industrial and commercial centres
in the US and held the largest communities of Irish citizens. In more recent times, clusters of
modern technological industry arose near these cities – notably life science industries in the
Boston area and, of course, Silicon Valley outside San Francisco - which made them
particularly suitable as centres of Irish investment promotion. However, other parts of the US
have now become centres of modern industry and the growing importance of the southeastern region led to the establishment of a Consulate-General in Atlanta in 2011. Likewise,
Texas is rapidly becoming a main centre of economic activity and a focus of attention of the
IDA and Enterprise Ireland, and the need for a Consulate-General there is being increasingly
felt.
15.0.3 A group from the Joint Committee visited the USA on 24-20 June 2012 to examine the
work of the Consulates from the aspects of trade and investment promotion and public
diplomacy. The group visited Atlanta to see Ireland’s newest Diplomatic Mission and how
its work reflected the priorities of the Department as presently established, and visited San
Francisco to observe how this long-established Consulate and the State Agency offices in
Silicon Valley are contributing to national recovery. It also made a brief visit to Texas to gain
a sense of how priorities in relation to trade and investment promotion and public diplomacy
might be advanced in an important and growing market where Ireland does not have a
diplomatic mission on the ground. The group was not in a position to visit all the ConsulatesGeneral but communicated with those not visited by detailed questionnaire.
15.0.4 Overall, the group was very impressed and encouraged by the work being undertaken
by locally by the Irish Consulates in Atlanta and San Francisco, and by the ConsulateGeneral in Chicago, which now covers Texas, as well as by the Honorary Consul of Ireland
in Houston.
15.1 Consulate-General Atlanta
15.1.1 The establishment of a Consulate-General in Atlanta had its origin in the 2009 report
on Ireland’s US strategy “Ireland and America: Challenges and Opportunities in a new
Context”, which recommended extending diplomatic representation in the US, with a new
1
The Permanent Mission to the United Nations in New York is concerned exclusively with the UN and has no
bilateral role vis-a-vis the United States.
24
Consulate in Atlanta as a priority. Atlanta is home for major US corporations like CocaCola, Delta and UPS, which have been important partners and investors in Ireland, as well as
for high-ranking universities like Georgia Tech and Emory University, which have strong
Irish connections of their own. It is also the US HQ of Oldcastle (CRH), the biggest single
Irish employer of US workers. There is a strong and growing Irish community in the region,
including several influential members of the Global Irish Network. An office of IDA Ireland
is located there.
15.1.2 In Atlanta the group met the Economic Commissioner of the State of Georgia, Chris
Cummiskey, and with the President of Invest Atlanta, Brian McGowan, and other leading
members of the Global Irish Network and other leading Irish business figures in the city. It
held discussions at Georgia Tech and with the Metro Atlanta Chamber of Commerce, as well
as with the Irish Chamber of Commerce. It visited i-Homes, CRH and the Carter Centre
(with which Irish Aid has a programme of cooperation).
15.1.3 The Joint Committee is satisfied that in its short period of operation (it opened, with
one diplomatic officer, in February 2011), the Consulate-General has added a major new
dimension to the representation of Ireland in the south-eastern United States. All its
interlocutors appreciated the commitment that it represents on the part of the Irish state to
developing economic and cultural relations with the region. In cooperation with the IDA and
the Global Irish Network, it will greatly assist in establishing and sustaining the networks
required in attracting investment and promoting trade, in line with the enhanced role of the
Department of Foreign Affairs and Trade.
15.2 Consulate-General San Francisco
15.2.1 The San Francisco Bay Area is home to many of the multinational companies with
operations in Ireland and to many of the new social media and networking companies. The
consular area of the Consulate – the thirteen western states of the US – is the source of 42%
of all foreign direct investment in Ireland.
15.2.2 The Joint Committee delegation spent a day in Silicon Valley, meeting industry
leaders. It met members of the Irish Technology Leadership Group (ITLG), many of whose
members also belong to the Global Irish Network, as well as conferring with the local offices
of IDA Ireland and Enterprise Ireland. At the Silicon Valley Bank it learned about the Irish
Graduate Intern Programme which was initiated by the Consulate. In San Francisco itself it
met various industry representatives, some of whom are members of the Global Irish
Network, as well as political representatives and Irish organisations such as the Irish
Immigration and Pastoral Centre and the GAA.
15.2.3 The Joint Committee found that the Consulate-General, in cooperation with the State
Agency offices, has established highly-effective networks throughout the industrial,
commercial, cultural and academic sectors in the Bay Area, in keeping with the role of the
Department of Foreign Affairs and Trade, as well as engaging in well-appreciated outreach to
25
the large and long-standing Irish community in San Francisco. A concern of the Joint
Committee at the time was that the post of Vice-Consul at the time was planned to remain
unfilled for 12 months as a cost-saving measure, temporarily reducing the number of
diplomatic staff to one, but the post has since been filled.
15.2.4 A further point of concern mentioned on all sides was the withdrawal by Aer Lingus of
the direct air link to Ireland. It is the understanding of the Joint Committee that this link will
shortly be restored.
15.3 Visit to Texas
15.3.1 Texas comes under the consular jurisdiction of the Consulate-General, Chicago, and
the Vice-Consul was on hand to assist with the delegation’s brief visit to Houston, together
with the Honorary Consul-General in Houston, Mr. John Kane. Discussions were held with
representatives of Kentz Group, which briefed the members on the energy sector in Texas
and on their experiences in doing business in the region. It visited the Texas Medical Centre,
the world’s largest medical complex, and the Baylor College of Medicine. It held discussions
with the Greater Houston Partnership, which encompasses the Chamber of Commerce, and
received briefings on the economic environment in Houston and on its international links. It
also met the Houston Director of Economic Development. Through local members of the
Global Irish Network, the delegation met a number of other interesting contacts who briefed
it on the business environment in Texas generally.
15.3.1 The Texas economy is strong and diverse, encompassing key sectors such as
transportation, aerospace and defence, financial services, high-tech electronics, biotechnology
and life sciences, petroleum refining and chemicals, and energy. Texas has been the leading
exporting state in the US for over a decade. It is home to over 50 Fortune 500 companies.
Nearly half of all new jobs created in the US since 2009 were created in Texas. If Texas were
an independent country, it would have the 11th largest economic in the world.
15.3.2 It is the opinion of the Joint Committee that Houston, as the largest city in Texas and
the fourth largest in the US, or Austin as the State Capital and a rapidly-growing centre of
innovative modern enterprise, be a priority for the establishment of a Consulate-General
when further expansion of the diplomatic network is considered.
END
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