The Governor of the Bank of Ireland, Mr Howard Kilroy, has urged a relaxation of immigration requirements for nationals of third countries as a solution to meeting labour shortages in the Irish economy. Speaking at the inaugural dinner of the Irish Alumni of the International Institute for Management Development last night, Mr Kilroy also warned against complacency on the economic front, stating that we run a great risk of concluding that we are "invincible".

Mr Kilroy noted that if economic growth continues in the medium term at or near current levels, Ireland will face a serious labour shortage. To address this shortfall, he called for a change in immigration policy. "If we cannot meet the consequent labour requirements from within current resources, we may have to look at lowering the barriers which we have erected against an influx of labour from third countries."

He said the debate had got off to a bad start as some public and media reactions to asylum seekers had painted a picture of a prejudiced society which did us little credit.

"Given the wandering nature of the Irish and the extent to which we have relied on other economies to compensate for our deficiencies, it is doubly ironic that we should treat the trickle of refugees which has arrived here with such suspicion," he said.

Mr Kilroy stated that such a shift in immigration policy will require a mindset change by the Government, by business and by the population at large, but stressed that we must address the issue openly, honestly and soon.

"If we are entirely frank with ourselves, we would accept that we are a somewhat closed society. We have not been exposed to other cultures," he said.