THE GOVERNMENT aims to create 10,000 new jobs in financial services over the next five years under a plan announced by Taoiseach Enda Kenny yesterday.
The target was a “credible estimate” and the opportunities to grow employment in the industry were “real”, despite the crisis within the domestic banking sector, Mr Kenny said.
An estimated 5,000 to 6,000 jobs have been created in the financial services sector over the past five years, making the Government’s plan an ambitious target following the global financial crisis.
The Taoiseach said the country had built a reputation as a global leader in financial services.
“The 10,000 is well within achievement within five years based on rebuilding that reputation, based on Ireland having achieved its reputation as a global financial centre,” said Mr Kenny.
The growth of the financial services would be subject to a “credible, responsible and proportionate regulatory system”.
He pointed to the decision of US financial services companies BNY Mellon to create 50 jobs last month through a new futures and derivatives clearing company as highlighting the potential to develop the industry.
“I understand that there is a line of interest that may result in further jobs here,” said Mr Kenny.
BNY Mellon already employs more than 1,800 people in Dublin, Cork, Wexford and Navan.
Willie Slattery, chairman of the International Financial Services Centre (IFSC) Ireland’s steering committee, said the jobs target was “realistically ambitious”.
He said he expected between 500 and 1,000 new jobs to be created in the funds industry this year and that this sector accounted for about a third of the jobs in Irish financial services. “If you project that out across all of the sectors, 10,000 is ambitious but it is realistic,” said Mr Slattery, a vice president at US financial giant State Street.
Employment in the (IFSC) has grown by almost 400 per cent over the past decade to a workforce of 33,000.
“As the world of finance changes, there is now an opportunity to grow further, for the sector to contribute to Ireland’s economic recovery,” said Mr Kenny.
The Government strategy will target jobs growth in international insurance and reinsurance; funds management, including alternative investment funds and asset management; green-based financial services; Islamic finance; and cross-border pensions.
“The capacity of the public authorities and the industry to co- operate to target growth opportunities is proven by the success of the industry to date,” said Mr Kenny.
Jobs growth will be driven by seven areas under the strategy. They include a transparent and competitive direct and indirect tax framework, the development of new business lines and the sustained control of business costs.
Financial services accounts for 7.4 per cent of GDP and 10 per cent of multinational employment in Ireland.
It contributes €1.4 billion in corporation tax and a further €700 million in payroll taxes.
