DUBLIN: The Irish Fund reports that with the enactment of the new Finance Bill introduced in the Irish Parliament, there will be major changes in the economy, including employment.
According to the Irish Fund, 3,000 more jobs will be created in the financial sector in the coming years. The new law will result in a number of administrative changes. The report expects significant growth and business in the Ireland’s fund industry centers in Cork, Limerick, Wexford, Kilkenny and Galway. There will be new jobs all over the place.
There will be long-term capital projects on renewable energy, energy efficiency, carbon capture and climate transition finance. A large amount of participatory investment will come to this. The Irish Fund reports that Ireland will become a major global powerhouse for raising capital for operations.
The Irish Fund estimates that the recently passed Investment Limited Partnerships (Amendment) Bill, enacted by Dail, will enable local companies to expand private equity, infrastructure, renewables and property finance offerings. Irish funds consist of 140 members, each with a fund of $4.9 trillion (€4 trillion). The Irish Fund says the new legislation will bring in €20 billion a year from global private capital to Ireland.
“This is game-changing in terms of Ireland’s global competitiveness and will enable and drive new business and opportunities, as well as retain business which has previously been lost overseas,” said Pat Lardner, the chief executive of Irish Funds. He said Ireland had reaffirmed its position as an important and complete service location for the global fund industry.
“Importantly it will stimulate growth, safeguarding and creating jobs across the sector benefiting local communities throughout Ireland and increasing the industry’s Exchequer returns at a critical time for the economy,” Mr Lardner said.
The Bill amends the Investment Limited Partnerships Act of 1998 and related laws. The bill would improve the efficiency of Irish Collective Asset-management Vehicles (ICAVs) and introduces a number of other measures designed to make partnership vehicles more effective.
Of the €10.9 billion in corporate tax revenue Ireland received last year, about €2.5 billion came from financial institutions. Ireland is now the world’s eighth largest financial services exporter, the report said.
A study by the Banking & Payments Federation Ireland and the Federation of International Banks in Ireland also shows that Ireland is the fifth largest exporter of financial services in Europe. According to the report, Ireland is the 19th largest international banking sector in the world in the last quarter of 2019.
At the end of last December, the region had $407bn (€332bn) in cross-border assets, according to the Bank for International Settlements.