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| NASA says Ireland seems beyond the reach of winter’s icy grip in this true-color Moderate Resolution Imaging Spectroradiometer (MODIS) Earth Observatory image from January 4, 2003. The rugged cliffs that mark the island’s west coast are showing their red-brown rocky surface, but the low-lying interior region is still wearing the island’s signature green. |
The IMI’s National Leadership Forum has advised the Government to undertake an immediate global roadshow to enhance what it termed "Brand Ireland" and to move the international promotion of Ireland from an over-focus on low taxes as the country’s primary advantage. This proposal is simply a case of putting the cart before the horse at the present time. Public relations can be important but when based on substance and it would be foolish to view the Budget on Tuesday, as a major reform program rather than what it will essentially be - - a plan/outline of how to reconcile public spending and expenditure over the next five years.
During the Celtic Tiger period, ministers believed their own propaganda on the "miracle" they had created and the international media bought the blather. Much of the media at home also fell for spoof and last Friday, Enterprise Ireland provided details to Finfacts of the €100 million export bonanza, that was claimed by Taoiseach Brain Cowen, during his St. Patrick's Day trip to the US, but in reality related to business from October 2008. The move from the over-focus on low taxes may be wise but in the context of the G-20 clampdown on tax havens, it would be unwise for Ireland's international reputation to take Cowen's information, that President Obama told him, he didn't believe Ireland is a "tax haven," as the end of the matter. For example, patents, which do not originate from Irish-based intellectual capital, are parked in Ireland to take advantage of the zero tax rating on patent income. In 2005, US multinationals in Ireland, reported profits that were twice as large as the profits of all US affiliates in Germany, France and Italy combined. In effect, each employee of a US multinational in Ireland was worth more than $539,000 in profits, while their counterparts in Germany brought in about $16,000, according to data from the Bureau of economic analysis of the US Commerce Department.
The day-long think tank which brought together what the IMI termed "100 top business and civic leaders," on Friday, produced its set of recommendations for Government to implement in the short-term to put Ireland back on track. The think tank, which opened with an address on Thursday, by the Taoiseach, spent eight hours discussing the options. Cowen said in his address, that the banking sector was "in denial" at the beginning of the economic crisis last autumn when it first came to the Government for support.
This National Leadership Forum, has a fatal flaw.
During the boom years, who amongst you shouted stop, as political leaders recklessly set the economy on fire? That question raises the issue of credibility but even now, after the best opportunity in the history of Ireland to put the economy on a sustainable course was blown, you shy away from addressing the core issue for Ireland: a governance system, that is unfit for purpose and which without significant reform, will leave most of your recommendations unrealised.
There already exists an Insider nexus between the public and private sectors and who would select "the senior public and private sector people together on advisory boards to run Government Departments."
See my article: New approach needed to fix broken Irish political system - - which was published in the Irish Times on April 01, 2009.
The politicians of course will buy into a global roadshow but we've had enough of fairytales. Keep their feet to the fire before the public loses patience with a broken system. Let's have some credible reforms and real change before selling blarney to an international audience.
Dr Tom McCarthy, CEO of the IMI (Irish Management Institute), said the Forum showed the commitment of Irish business and community leaders to work for Ireland Inc’s betterment. “People want Ireland to get back to business quickly and to rebuild ethical standards. Business wants the Government to articulate a clear plan of action to address the fiscal, banking and competitive challenges and they hope this will start with this week’s Budget,” McCarthy said.
“The Leadership Forum believed an immediate priority should be an Ireland roadshow across the world, most likely led by the Minister for Finance Mr Lenihan. This should be a cross agency roadshow involving the National Treasury Management Agency, the IDA and Government.”
The top recommendations from the Forum are:
- Government must articulate a clear plan of action to address the fiscal, banking and competitive challenges. The Government must ‘nail the bottom’ on the financial crisis, otherwise Ireland remains an easy target for international media sensationalism. Government must give clear indications that it has costs and expenditure under control;
- Areas of opportunity in the Smart Economy should be identified and people should be assigned and resourced to bring these ideas forward.
- Create Business Brand Ireland, marshalling resources to articulate an aligned message that will sustain Ireland’s position as a good place to do business; Establish a Cross Agency Roadshow and mobilise around this to enhance Brand Ireland with a carefully targeted plan for a domestic and international audience that will Ireland is open for business;
- Government must provide clear signals of rebuilding the regulatory environment and get credit flowing through the banking system;
- Move away from low tax as being the primary advantage for Ireland internationally, bring focus to our successes and new sources of competitive advantage;
- Government and Ireland must lead by example to rebuild ethical standards; Business lobbies have to be encouraged to actively promote the highest levels of corporate governance;
- Put senior public and private sector people together on advisory boards to run Government Departments;
- Business must embrace Europe and fly the flag for Lisbon.
- Business leaders need to engage with the media, not be afraid of the media;
On the Public Service, the Forum recommended that:
- Government must stop rewarding non-performers; benchmark against standards in performance not just remuneration
- Public procurement has to be used to force competitiveness in the Public Service;
- The cost of Government has to be tackled in this and future Budgets;
- Create a programme of mobility between the public and private sectors at middle management levels;
- Aggressively reduce over-regulation and red tape;
- Decision-making in the Public Service has to be speeded up and a sense of urgency of service response to its customers instilled, with pre-determined timeframes for decisions and responses
On Business the Forum recommended:
- Business leaders have to get down into the trenches and be open and honest about their own situation, particularly finances and work with employees to generate and develop solutions;
- Target Irish multinational superstars who are good on innovation to start new businesses here and link them to the education system;
- Invest in management development and Create opportunities to infuse and share ideas between public and private sector managers, providing organisations with the frameworks, management tools and skills to enable them to build their organisations;
- Bring learning from highly competitive sectors to those sectors that are not typically competitive using MNC's to mentor SMEs on Management practice and capability
- Within companies, create a safe forum for the exploration of ideas.