A limited supply of housing has not prevented companies from doing business in Ireland, according to the new head of the country’s investment promotion agency.
(Bloomberg) — A limited supply of housing has not prevented companies from doing business in Ireland, according to the new head of the country’s investment promotion agency.
In a television interview at the Bloomberg New Economy Gateway Europe conference outside Dublin on Wednesday, Michael Lohan, who became CEO of the Industrial Development Agency just this week, said that he doubts housing is “a topic that will deter executives from coming to Ireland.”
“There is a challenge, but we have a resolution,” he told Bloomberg Television’s Francine Lacqua, referring to the government’s plans to increase the supply of affordable housing. He added that the country’s current housing shortage is a reflection of population growth and the result of an influx of talent, as many people have relocated to Ireland to take advantage of its economic opportunities.
“Our investment flows continue to be strong,” Lohan asserted. Investors “are confident in the proposition that is Ireland and that is our people, our skills, our innovation.”
Even so, the country has been impacted by the job cuts sweeping the global technology sector, which has a strong presence on the island. Between 5 and 8% of the country’s tech sector was affected, Lohan said, adding that the cuts have hopefully reached a “point of stability.”
Putting a positive spin on the cuts, he noted that tech skills are required “across all industries,” and that Ireland’s “diverse industry base” positions it well for the next boom, which could be in a sector such as industrial tech.
While the volume of incoming business is set to decline relative to the past two years, Lohan expressed confidence about the country’s prospects in another interview with Bloomberg Radio on Wednesday. Ireland still has a “very strong, robust pipeline” of foreign investment, he said.
–With assistance from Peter O’Dwyer and Stephen Carroll.
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