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Legislative Assembly for the ACT: 1999 Week 13 Hansard (9 December) . . Page.. 4110 ..

MR HUMPHRIES (continuing):

Growth in future years is expected to slow to a still enviable 6%, partly due to the expected cessation of major EU funding grants.

Inflation is low - around 2%. As a result, wages have been very stable in recent years.

The Budget is in surplus and so is the balance of trade. Ten years ago, the budget was in deficit to the tune of 12% and the balance of trade in deficit by 7%.

A 10% corporate tax rate was established (in lieu of the normal 32% rate) for companies seeking to establish in Ireland in 'eligible or qualifying industries'. These industries are particularly centred on IT, financial services and reinvestment. In 2002, this system changes to a corporate tax rate of 12.5% for all companies.

Manufacturing now generates 40% of Ireland's GDP, and over 80% of its export income, demonstrating that Ireland is now a popular base for export-based manufacturing, and this is predominantly in IT and high-technology products.

Unemployment has dropped from almost 20% in the late 1980s to under 6% at the current time. In reality, that is, according to the Irish Development agencies, as close to full employment as they will get, but unemployment remains an issue in outlying, regional and rural areas.

Infrastructure growth has not kept pace with economic growth. Roads are heavily congested, public transport is poor and the cost of housing in Dublin is astronomical. Commercial premises in Dublin are difficult to obtain.

Tax reform and labour relations are key areas of challenge to the Irish Government. Income tax rates are high and unions are beginning a campaign of industrial action aimed at sharing in the economic growth.

Even during the difficult times in the 1980s and early 1990s, Ireland continue to invest heavily in its education system and its telecommunications system. As a result, its workforce is generally high skilled and the environment in which companies can establish is very modern. During the late 1980s and early 1990s, the highly skilled workforce with few employment prospects led to a mass export of skilled labour, which is only now beginning to return to take up the significant opportunities at home.

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