REMARKS BY PRESIDENT MCALEESE AT AN ENTERPRISE IRELAND WORKSHOP ON THE PHARMACEUTICAL INDUSTRY
REMARKS BY PRESIDENT MCALEESE AT AN ENTERPRISE IRELAND WORKSHOP ON THE PHARMACEUTICAL INDUSTRY BARCELONA
President Mas, distinguished guests, ladies and gentlemen.
Thank you for your warm words of welcome this morning. I am delighted to be here in the historic surroundings of the Palau de la Generalitat in this beautiful city of Barcelona, which I first visited as a schoolgirl and fell in love with. I am particularly honoured as I understand that I am the first Head of State to visit since your appointment as President. So may I use this moment to congratulate you on your election as President of the Generalitat, to wish you every fulfillment and success as you lead Catalunya into its future.
Irish minds and hearts open easily to Catalunya for your cultural confidence, your distinctive language and proud heritage resonate very strongly with out own historic experience. Your love of all things Catalan is inspirational and your contribution to the shaping of European, particularly Mediterranean civilization is considerable. It is easy to see why this exciting city has proved to be an inspiration for Irish artists, a lure for Irish tourists and a dynamic place for Irish companies to do business.
Catalunya’s long and successful history of industry and commerce is evidence of a naturally enterprising people, innovative and resourceful people. The Irish share similar characteristics and I have no doubt at all that it is this shared spirit of enterprise and initiative that will enable us to overcome the challenges of the current financial and economic crisis.
I am pleased that this event being held today under the auspices of the Generalitat, in
co-operation with Enterprise Ireland, has brought together so many representatives of companies based here in Catalunya, as well as those who have travelled from Ireland. Economic recovery in Ireland is dependent on the continued strength of the external sector which has thankfully shown remarkable resilience. Our export growth is
broad-based, with the financial services, food and pharmaceutical sectors performing particularly well. The latest available figures show that exports of medical and pharmaceutical products increased by 14% in the first eleven months of 2010, compared with the same period in 2009. At a time when double digit good news is hard to find, that is a very encouraging statistic.
Yet there are other causes for optimism too. Significant cost base adjustments have greatly enhanced competiveness in Ireland – as rents, salaries and costs are lowered these have helped underpin the robust growth in external demand for our goods and services. These are encouraging trends and we believe that strong, sustained export growth will drive recovery and increase domestic demand, which is also good news for those seeking to export into Ireland.
The Irish companies here today will be able to meet with Spanish pharmaceutical buyers of products, technologies and services, while the participating Spanish companies will have the opportunity to hear about Irish supply capability into the global pharmaceutical sector. Ireland’s indigenous bio-pharmaceutical sector consists of approximately 100 companies, and has been growing at an average of 18% per annum over the last four years. The sector is highly innovative and dynamic with companies such as Merrion, Sigmoid and Opsona competing successfully in markets throughout the world. The Irish company, ICON, is now the third largest contract research organisation in the world and the fastest growing for the last seven years.
The pharmaceutical sector in Ireland also has a strong multinational component, with top international pharmaceutical firms such as Johnson & Johnson, Pfizer and Novartis having substantial operations based in our country. In fact, 8 of the top 10 pharmaceutical and 15 of the top 25 medical technology companies globally have significant operations in Ireland. Ireland is recognised as a global hub for the life sciences sector. Recent new investments by international companies include Allergan’s announcement of the expansion of its manufacturing facility in Westport in the West of Ireland and the establishment of a Europe Middle East Asia Shared Services Centre by Covidien in Dublin. In total, multinational firms in the pharmaceutical sector now employ over 41,000 people in Ireland.
One of the things that makes Ireland so unique is that we have fostered a collaborative environment in which pharmaceutical companies, both indigenous and multinational, who are competitors in other ways, have come together to conduct critical research in Ireland. The Irish Government has invested heavily in Research & Development over the last decade and will continue to support the world-class research being conducted in our academic institutions. Our national foundation for research, Science Foundation Ireland, has a specific focus on life sciences, attracting top researchers to Ireland and promoting world-class research activity in the country. These researchers are engaged in extraordinary scientific work. I engage personally with this area through a scheme of annual awards for Young Researchers. Last year, for example, prizes were given for research into human hepatitis B virus biology and into the increasingly worrying area of antibiotic resistance. The individual talent of the people in these research areas and the ground-breaking nature of the work being undertaken are deeply impressive.
The free flow of ideas and the cross-fertilisation that comes with that are vital to success in this area. Research, Development and Innovation in Ireland is driven by an exceptional level of collaboration between industry, academia, government and the regulatory authorities. Across the economy, Ireland has trebled its R&D spend over the past decade. For those looking to invest, this collaborative environment, complemented by our youthful, highly-educated and highly skilled English-speaking workforce, our attractive corporate tax rate and R&D tax credit provides a very attractive package.
In addition, our Industrial Development Agency, IDA Ireland, is on hand to help potential investors in practical ways such as linking companies seeking to invest with excellent pre-planned sites or a developed sub-supply system or world class design consultants and much, much more.
My message today is that, despite the setbacks we have faced in recent years, Ireland is still a very attractive place to invest and to do business in. Following a sharp contraction over the past two years, the level of economic activity has now stabilised. Both Spain and Ireland are expected to see a return to growth in 2011, and I believe that the pharmaceutical sector will play a significant part in supporting that return to growth.
The pharmaceutical and medical devices sector has been a star performer throughout the recession, seeing sustained growth despite very harsh conditions internationally. In 2009, a difficult year for the economies of both our countries, the value of two-way trade in medical and pharmaceutical products rose by over 22%. And early figures for 2010 show this growth continuing, with an increase of over 11% in the first three quarters of 2010 compared with the same period in 2009. These figures are impressive. They did not happen by coincidence but by hard work and commitment by people on the ground, people like you. Clearly there is scope for further collaboration and cooperation and there is much we in Ireland can learn from the success of Barcelona-based firms.
As well as explaining and showcasing the many economic advantages of investing in Ireland or doing business with Irish firms, today’s conference and workshop is a valuable opportunity to experience first hand the warm, open style of business relationships in Ireland. We are flexible, adaptive, productive, innovative but also welcoming and engaging on a human level. Even the most high-tech businesses still depend for their success on human innovation and human relationships of the handshake, the shared meal, the conversations and the trust that grows from friendship. It is my fervent wish that through today’s event, and with the continued support and encouragement of
President Mas and the Generalitat, we can sow the seeds of warmth, trust, friendship and optimism that will allow Irish-Catalan business relationship to continue to flourish in the years to come.
Thank you.