Marine industry can influence recovery of Irish economy
Diarmaid Mulcahy
The Irish economy, once the envy of the world, is now in deep recession. Other countries too are facing economic turmoil, with rising unemployment, financial institutions in severe difficulty, and governments scrambling to slow up if not halt the worst effects of the downturn.
Traditionally dependent on farming, Ireland has been very successful in attracting foreign multinationals to locate here. Almost 90% of our exports and more than two-thirds of the country’s R+D is now generated by such firms.
Research and development has been hugely beneficial to the Irish State, creating many jobs and greatly adding to the national tax take. With changing economic conditions, many of these multinationals are looking to cheaper cost locations, as Ireland has priced itself out of the labour market.
Many businesses are now trying to stay afloat but are having difficulty accessing bank credit to fund dips in cashflow. The State is desperately trying to stabilize public finances as tax revenues plummet, and spending cuts are being implemented in all directions.
Despite the gloom however, perhaps the light will finally dawn on the fact that the natural resource surrounding this island might just hold some of the answers…
The Irish State has invested heavily in developing an aquaculture industry; however it is now at a critical stage in its development.
Entrepreneurs have been born from this sector – many whom are highly regarded on the global seafood stage. The sector deserves all possible State support to preserve such precious businesses and jobs.
The Irish government must take courageous decisions to support existing businesses, and be creative in developing conditions to support entrepreneurs.
Aquaculture offers opportunity in both these areas but immediate attention is needed on issues such as licence renewal and access to funding.
Creative thinking may be needed to help access funding for aquaculture projects. If the Irish State is prepared to guarantee personal savings through the bank guarantee scheme and recapitalize some Irish banks, surely a means can be found to help secure funding for projects/sectors like this?
