The Scottish-Irish Business Forum, which was launched earlier this month in Edinburgh by the Tanaiste, Mrs Harney, and the Scottish Enterprise Minister, Henry McLeish, has set itself the ambitious task of fostering joint initiatives on international inward investment.
The Forum, comprised of business organisations and agencies in the Irish Republic, Northern Ireland and Scotland, also aims to intensify trading links and create synergies between two small economies which are focused on what both ministers describe as the knowledge economy.
The Forum's members include the Scottish Chambers of Commerce, CBI Scotland, the Federation of Small Businesses, CBI Northern Ireland, Scottish Trade International, Enterprise Ireland, Bank of Ireland and the Allied Irish Bank. Speaking at the inaugural meeting, Ms Harney, Minister for Enterprise, Trade and Employment, said that a joint approach to major inward investors could achieve a "bilocation" where a global company felt that neither Ireland or Scotland alone could supply their needs.
"We are obviously going to remain competitors but that does not mean that there are not huge areas where we can work together," Ms Harney said, while Mr McLeish predicted that the two countries will build a "very powerful relationship." A further indication of the strength of this reawakening relationship after decades of mutual neglect was the decision of the Scottish Chambers of Commerce to select an Irish double-bill to address its annual dinner in Glasgow that same evening: Mary Harney and the former Attorney-General and EU Commissioner, Peter Sutherland. Harney won generous applause for an unscripted presentation of how Ireland and Scotland had been kept apart for decades on account of politics, but were now discovering common interests and mutual opportunities, even though Scotland was one of Ireland's strongest competitors for inward investment. Confident that the peace process in the North, under the steady guidance of Senator George Mitchell would come to fruition, the Tanaiste predicted that "we have almost arrived at that moment." Success, she said, would enable the Council of the Isles to be set up.
If Harney was a hard act to follow, the veteran Sutherland showed he was a master of the after-dinner speaking circuit, delivering a masterly analysis of the impact which globalisation was making on small economies such as Ireland and Scotland. The interdependence of the world economy, he said, provided great opportunity for the young generation to achieve higher standards of living and health. Speaking as co-chairman of BP Amoco, Mr Sutherland said that Britain - though it did not see it yet - was well placed to take advantage of the liberalisation of trade and the development of innovation within the European Union and in the forthcoming world trade negotiations in Seattle. Present at the dinner was a delegation from the Dublin Chamber of Commerce led by president Hugh Governey, managing director, corporate broking of Coyle Hamilton.
"It was an excellent night. We felt very proud to be Irish because the Tanaiste and Mr Sutherland spoke well and got a marvellous reception from the Scottish business community," he said. Mr Governey said that while it was coincidental that the Dublin Chamber was visiting its Glasgow opposite number on the same day as the Irish-Scottish Business Forum was being launched, he plans to recommend membership of the new body to the Chambers of Commerce of Ireland. Particularly thrilled by the reception accorded to the two Irish speakers was Stephen Hughes, manager in Scotland of Enterprise Ireland, who is convinced that the creation of the Forum and the diplomatic presence of the Consul-General to Scotland, Daniel Mulhall, has given enormous impetus to the business potential of Irish companies in Scotland. Scotland is Ireland's 12th most important export market. Irish exports to Scotland are estimated at £656 million sterling in 1998. However it must be stressed that Irish exports to Scotland are not compiled separately from total exports to Britain. They are based on a pro-rata of GDP, under which Scotland accounts for 8.3 per cent of the British total. Main products include data processing machines, chemicals, electrical equipment, meat and dairy produce.
It is only recently that Scotland began to keep separate export figures from the rest of Britain. These show that in 1997-8 Ireland ranked as Scotland's 13th most important market, with trade accounting for £336 million. Scotland's main exporting sectors included radio, TV and communications, equipment, rubber and plastic Mr Hughes sees continued opportunities for Irish companies arising from the closeness of the market, the like-mindedness of the two peoples and the similarity of mobile investments, especially the potential for companies to provide sub-supplies.
"Enterprise Ireland is working with sub-supply companies in the electronics sector which offer added value solutions to leading Original Equipment Manufacturing companies," he explained.
As well as in engineering, great opportunities exist for Irish software companies to supply the fast-growing services sector which numbers seven of the top 10 Scottish companies.
In this sector there are I70 call centres mainly in Glasgow and Dundee. Overall, the sector employs nearly 300,000. Over 120 Irish industrial manufacturers are developing "linkage" opportunities with Scottish customers.
The Perth-based Scottish and Southern Energy (SSE) plans to build a 400-megawatt gas-fired power station at Platen, near Drogheda in partnership with Marathon: the £150 million project is SSE's first foray overseas. Scottish Power stands to benefit from the opening up of the Irish electricity market by selling power down an interconnector which is being laid beneath the Irish Sea from Ayrshire to Northern Ireland. Scotland, with Europe's third largest fishing fleet as well as the second largest fish farming industry, is a key market for Irish fishing equipment manufacturers.
"Irish companies have been upgrading production capabilities as well as increasing investment in sales and marketing, leaving them well positioned to capitalise on current market opportunities." On first arriving in Scotland Mr Hughes thought that there were no differences in the national characters but he quickly discovered that Scottish people are slightly more formal and slower to get on to first name terms than are the Irish.
"The Scots are slower to make friendships but once a considered decision is made by the Scot the friendship becomes firm and permanent."
