The Ireland that works campaign maps out the key priorities for business in the next phase of the recovery and will form a central part of Ibec's activities to influence and shape the national debate. With the Troika gone, Ireland has important decisions to make on how to build on the economic progress already made, tackle unemployment and drive growth across the economy. We need to get these right. At Ibec we plan to lead the debate. We have identified five pressing issues on the national agenda that will have a major impact on Ireland’s success into the future: 1. We need to reduce the tax burden: Ireland is out of line internationally and our income tax rates, in particular, are too high. Irish consumers deserve a break. 2. We need better government: Poorly designed policy, legislation and regulation add to the cost of doing business and are an obstacle to growth and job creation. 3. We need to invest in the future: To meet our future economic needs, we need to spend much more on infrastructure projects and skills and education. 4. We need to extend Ireland’s global reach: International debates on tax and EU reform could have major implications for Ireland. We need to influence and shape the agenda. 5. We need to promote entrepreneurship: Business need to have access to effective enterprise supports, credit and export markets. Risk needs to be rewarded. We hope the campaign priorities are relevant, challenging and resonant with your own ambitions for your business and for Ireland. Ibec will be rolling out more elements of the campaign over the coming weeks and months, and we'll keep you updated on our blog. Download, share or embed this campaign brochure. You can also join the conversation on twitter, #irelandworks @ibec_irl or on the Ibec Linkedin group.

1. An
Ireland
that
works
Business
priorities for
growth and jobs

2. Business isn’t part of the
plan for economic recovery,
business IS the plan for
economic recovery.

3. Ibec believes that the Irish economy can grow by an average of 3% to 4%
every year over the next 20 years. We’re not there yet, but Ibec and
Irish business, working with government, can make it happen.
Danny McCoy
Ibec CEO
About the “path to prosperity”,
you’ll be pleased to know
we have a map.
Join the conversation
@ibec_irl #irelandworks
www.linkedin.com/company/ibec
www.ibec.ie/irelandworks
Our
priorities

4. 1. Reduce the tax burden
The challenge
The tax burden is too high and is a drag on
employment, investment and consumer spending.
It is making the move from welfare into work less
attractive and is making it more difficult to attract
much-needed mobile talent to the country. Yes, it
was necessary to broaden the tax base and increase
some taxes in the austerity budgets, but the tax
hikes have gone too far and are restraining recovery
in retail and the domestic economy generally.
Tax on work is now completely out of line with
our international competitors: Ireland now has the
highest marginal income tax rate at average earnings
in the OECD.
The government’s pension levy is an inequitable
and unjustifiable tax on the savings of private sector
workers, which undermines property ownership
rights. Consumer taxes are also amongst the highest
in the EU and are eroding household
spending power.
The solution
Increase the entry point to the higher
marginal tax rate
Reduce the fully-loaded marginal income
tax rate below 50%
Bring the marginal tax rate for the self-employed
back into line with other workers
Drop the unfair private sector pension levy
Reverse excessive increases in excise rates
Reform capital gains tax to support enterprise
investment over speculative activity
The country’s
hard work
should be
less taxing.

5. 2. Better government
The challenge
Poorly designed policy, legislation, regulation and
service delivery add to the cost of doing business
and are an obstacle to growth and job creation.
While Ireland scores well internationally for ease
of doing business, we have a poor track record in
how we legislate and develop policy.
Our public administration does not apply a
sufficiently systematic approach to assessing
the impact of new regulations which leads to
unintended consequences.
The State and its agencies also have a significant
impact on business conditions in areas such
as enterprise support structures, utilities, local
government services and infrastructure delivery.
Ireland ranks poorly in many of these areas and
urgent reform is needed.
Continuous reform is needed to deliver greater
efficiency and cost competitiveness in government
services. The number of state agencies and
the overlap between them causes problems
for business by generating additional costs,
uncertainties and inconsistencies.
The solution
Embed rigorous regulatory impact assessment
into the policy making process
Eliminate unnecessary regulatory and
administrative costs
Introduce a new low-cost, timely and non-judicial
appeals model for regulated sectors
Simplify and reform enterprise support structures,
particularly innovation funding
Reform the procurement process to reduce costs
and encourage SME participation
Reduce the cost of local government and
introduce a fairer, more transparent system of local
government charges for business
Extend recent changes to public sector pensions
for new entrants to all staff
Protect Ireland’s successful, voluntarist approach
to collective bargaining
Irish companies
should be able
to go about
their business,
in fairness.

6. Priority 3:
Invest in the future
The challenge
About 70% of the public expenditure reduction
during the crisis was achieved from cutbacks in the
public capital programme. Capital investment must
be ramped up again if we are to avoid the mistakes
of the past, when infrastructure gaps were a major
constraint on growth. Significant infrastructure
gaps in the transport, health, education, energy
and environmental services sectors need to be
addressed. Record low borrowing costs mean that
now is the time to invest ambitiously in the future.
Targeted investment is also urgently needed to
help address the growing gap between the pace of
economic recovery in Dublin and in the regions.
Investment in education, skills and labour market
support is poorly targeted and is not having the
desired effect. Education spending has been cut in
recent years and we don’t have a robust financing
model for third-level education.
The solution
Increase public investment in infrastructure to 4%
of GDP by 2020
Streamline the planning process, particularly
for energy projects and show greater leadership
on community acceptance for infrastructure projects
Ensure public private partnerships (PPPs) are
the key delivery mechanism for investment
Develop a new national spatial strategy,
which supports balanced regional development
Involve more employers in the reform and roll-out
of activation and training programmes
Increase effective investment in education and skills
and put in place a sustainable funding model for the
third-level sector
Implement a co-ordinated strategy for further
education and training, and update the second-level
curriculum so school leavers have core
employability skills
Growing our
infrastructure
doesn’t have
to be a
pipe dream.
3. Invest in the future

7. Priority 4:
Extend Ireland’s
global reach
The challenge
Ireland remains one of the world’s most open
economies. Irish business is increasingly global
in focus, based on innovative manufacturing and
internationally traded services.
Our prosperity is determined by important economic
and strategic ties with major global partners.
Investment and trade success will be central to our
economic recovery and we must continue to foster
effective international links.
International developments in areas such as trade
and taxation will shape our prospects over the
coming years, while political developments in the
EU and the UK will also have significant implications
for business and employment in Ireland.
The solution
Support Ireland’s competitive position in relation to
international tax reform
Complete agreements with the US, Asia and others
to support trade and investment opportunities for
Irish and EU business
Proactively shape EU policy and regulation,
promoting Irish business priorities to influence the
European Council, Commission and Parliament
Work with business and authorities at national, EU
and international level to advance trade facilitation
and efficient customs procedures
Support exporters, particularly SMEs, by reducing
regulatory and administrative barriers
We’re on the
world stage,
isn’t it time we
played the lead?
4. Extend Ireland’s global reach

8. 5. Promote enterprise & entrepreneurship
The challenge
Ireland doesn’t produce enough start-up firms and
not enough small companies make it big. Many EU
countries have a much stronger indigenous SME
base, while Irish-owned firms account for only about
15% of total exports.
Finance, access to export markets and the ease and
cost of doing business all remain significant hurdles
for Irish business.
We need a business environment that supports
entrepreneurship and rewards innovation and risk-
taking. Much more must also be done to help Irish
companies scale up.
The solution
Improve credit flow to business by enhancing
tax-based investment schemes, state-backed
capital funds, EIB support and the venture capital
environment.
Address business costs, such as the government
element of labour costs, utilities and
government charges
Prioritise entrepreneurial attributes and skills at all
levels of the education system
Improve the innovation and technology supports
for SMEs
Ensure Ireland’s R&D tax credit model
is world-class
Enhance the links between business and
higher education
Being in
business
for yourself
doesn’t mean
you have to
be in business
by yourself.

9. Our ambition for Ireland
Double the EU Average
for annual GDP Growth
Grow export share of
indigenous companies
Best country in the
world to do business
Rank in top 20 for prosperity
of EU's 230 regions
EU IRELAND
2012
1.5-2.0% 3-4%
20202016
20
30
35
Rank in top 5 OECD
Better Life countries
2012
TOP 15
20 - 15
10 - 15
5 - 10
1 - 5
2016
TOP 10
2020
TOP 5
2.1 million people
working by 2020

10. Grow export share of
indigenous companies
Best country in the
world to do business
EU IRELAND
1.5-2.0% 3-4%
30
35
15%2012
2016
2020
20%
25%
1
2 3
New Ibec business
conditions ranking
2012
TOP 15
20 - 15
2016
TOP 10
2020
TOP 5
2.1 million people
working by 2020
2.0 2016 2.1 20201.8 2011
Our ambition for Ireland

11. A prosperous Ireland for your
children, your children’s children,
and, more importantly,
your children’s children’s
grandparents.

12. Join the conversation
@ibec_irl #irelandworks
www.linkedin.com/company/ibec
www.ibec.ie/irelandworks
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