The launch of a new strategy development by Enterprise Ireland, which is designed to double the value of exports from indigenous industry, is well timed in the light of this week's warnings from the Central Bank. The Bank's governor, Mr Maurice O'Connell, underlined the economy's huge dependence on US firms investing here. This investment is concentrated in a few very high growth sectors but any slowdown in these areas would have a disproportionate effect, he warned. Enterprise Ireland, the industrial "super-agency" was formed last year in a merger of Forbairt, An Bord Trachtala and the industrial training division of FAS. It has about 1,000 employees and a budget of £120 million. At the time of its formation, some questions were raised as to whether bigger was necessarily better, but the extraordinary success enjoyed by Enterprise Ireland has made most, if not all, of these questions redundant.
In truth, Enterprise Ireland, launched at a time of unprecedented economic growth, could scarcely fail. Over the past year, its success has mirrored that of the wider economy. Its end-of-year statement last year showed how indigenous Irish business supported by it, achieved more than £18 billion in sales in 1998, an increase of 10 per cent on the previous year. It also pointed to astonishing growth in the export of Irish software products to the US.
The very ambitious targets set by Enterprise Ireland in its strategy yesterday, reflects a remarkable level of confidence in the Irish economy. By the year 2001, it is predicting sales by Enterprise Ireland clients to increase by no less than 22 per cent to £21.1 billion with exports up 31 per cent to £8.8 billion and employment up 9 per cent to 142,000. The organisation is promising a radical overhaul of its own operations with a sharper focus on high-potential start-up business and the provision of an effective one-stop shop giving access to specialist services for indigenous companies.
The strategy outlined by Enterprise Ireland is certainly impressive. The primary focus given to the client company - indeed the manner in which the entire organisation appears to be re-orientating itself to become a "client-focussed "agency - is impressive. But the key challenges which include the need to deepen Research and Development capability and to gain a larger slice of international markets for Irish companies, should not be underestimated. Enterprise Ireland has other issues to consider; the balance between grant assistance and equity assistance for new business; the question of how to build indigenous industry outside the Dublin region and, not least, how to rationalise its operations so as to provide the best value for money for the Irish taxpayer - and for Irish industry.