The International Financial Services Centre (IFSC) in Dublin is to expand into Northern Ireland under plans unveiled by finance ministers on both sides of the Border today.
Brian Cowen
Taoiseach designate and Minister for Finance Brian Cowen and Stormont Finance Minister Peter Robinson today gave their backing to the plan in Belfast.
The proposal, which Mr Cowen claimed the financial regulator in the Republic had recognised may be needed, will create jobs with salaries well above the Northern Ireland average.
Mr Robinson, who is set to become Northern Ireland’s First Minister not long after Mr Cowen becomes Taoiseach next month, said: “This is the outcome of us having worked together.
“For a number of months now Brian and I have had meetings, correspondence and our officials working together to arrive at this position.
“To some extent we have provided you with some evidence of us having worked together and, of course, we want to ensure that there is the highest level of co-operation to the advantage of both our peoples.”
Mr Robinson described the announcement as a win-win situation for the economies on both sides of the Border.
The IFSC has been one of the Celtic Tiger economy’s success stories since its creation in Dublin more than 20 years ago. Over 430 international operations trade in the IFSC including some of the biggest names in world banking and insurance such as Merrill Lynch, Sumitomo Bank, ABN Amro, Citibank, AIG, JP Morgan (Chase), Commerzbank, BNP and EMRO.
In return for creating jobs the companies have been entitled to Government tax breaks — an arrangement which will continue under Mr Cowen and Mr Robinson’s plan even if they farm out some of their operations to offices in Belfast.
Mr Cowen said there was an opportunity for Northern Ireland to cement its growing reputation with the financial services sector centre of excellence.
“We know from our own planning requirements that there will be the need for skills to be complimentary to those we have in Dublin and the Republic,” he said.“We believe Northern Ireland is the obvious place for that to be provided rather than Eastern Europe or further afield.”
The announcement was welcomed by SDLP Leader Mark Durkan who said it was a clear example of North/South co-operation making sense.
“Some people mistakenly said when Brian Cowen was appointed Fianna Fáil leader-designate that he had no particular interest in Northern Ireland,” the Foyle MP said.
“This announcement is yet more proof that North/South is in fact second nature to him. That has been his track record in government and I anticipate that he will continue this positive approach.
“I have no doubt that this measure is a first instalment in future positive engagement that can only be of real benefit to all of us on the island.”
Sinn Féin economy spokesperson Mitchel McLaughlin urged both Finance Ministers to ensure the jobs were created in economically disadvantaged Border areas.
“I believe that the infrastructure required to accommodate a large percentage of the projected jobs and the qualified worker pool to service the needs of the Financial Services Sector is available in the region of the border corridor and would attract applicants from both sides of the border,” the South Antrim MLA said.
PA