Businessweek Extra- IDA Ireland CEO

responsible for attracting and developing foreign direct investment into the country. Yeah, and at one point in January, tim Ireland had the fastest and highest spike in coronavirus cases in the world, and that was followed by one of the most stringent lockdowns over in Europe. Ireland is also among those European nations that have temporarily halted the use of the astra

Zeneca COVID nineteen vaccine. Our conversation covered a lot of ground, including Brexit, corporate taxes, growth, tourism, and of course the impact of the pandemic. And that's where we started. Supposed like all countries, you know, it's been a very difficult year for countries, for citizens and indeed for for companies. But I think we are getting through this as you mentioned in your introduction, we've had a difficult January February,

but we have seen infection rates for all hospitalizations fall. Thankfully, that's fall and like all of the countries, we are rolling out our vaccine program at the moment, so we are still in a reasonably high level of restriction, but we're hoping come the next number of weeks that we will be able to start to on wind some of those we've seen school children start to go back to school, so slowly but surely we're getting back and we are getting the most vulnerable vaccinated at the moment, and we

hope that to be able to extend that program over the coming months. Obviously, availability of vaccines is really what's limiting us at the moment, and so it's it's supply rather than anything else. Yeah, looking at the Bloomberg Vaccine tracker right now, and it shows that nine percent of the population in Ireland have received at least one shot of the COVID vaccine and three point three percent of

the population is at this point fully vaccinated. I mean, just anecdote speaking, how do you feel like it's going Are you starting to hear of more and more people and know, more people who are getting vaccinated. That's how

it started for us here. Yes, I think we are him and I'm quite close to this as well, So maybe you know, I I hear a lot about this every day, but I think, you know, we are slightly ahead of the European average in terms of the numbers vaccination at this point, but undoubtedly Europe is behind I think the US and indeed the UK and Israel in terms of the numbers that are vaccinated. And but certainly

undoubtedly we are seeing the effect. And you know, where people have been vaccinated, and again, like other countries, we've started with the most vulnerable elderly, those with serious medical conditions, and we have seen the vaccine is working. And and you know, so I think there's renewed hope everywhere because of the advent of new therapies and indeed the options

we have now around vaccines. Yeah, the Bloomberg Vaccine Track says that the EU has a seven point seven percent of the entire population with one with one does so I am wondering how this is all. How you're thinking about this when it comes to attracting foreign direct investment. How how do you do you think does does the coronavirus pandemic. Is this setting back the goals that you had over the last few years, majorly in terms of

attracting businesses to the country. No, actually, and I suppose what we've seen in in Ireland is a kind of bifocation, and I think we're not unique in that regard, where we've seen the domestically traded economy, particularly retail, hospitality, also the tourism sector and construction to some extent impacted and impacted very heavily. So undoubtedly the pandemic we have felt

it in Ireland. But actually those sectors which are dominated by FDI in Ireland, which are technology, pharmaceuticals, medical devices,

international financial services, have proven extraordinary resilient. And I suppose Ireland has really over the last number of years that on those sectors, really modern sectors that underpinned a modern economy, and they have proven really resilient during this period both the install base of investments here but also for twenty we only saw a six percent drop in the number of investments that we have had into Ireland, and Ireland is one of the few countries that also posted positive

economic GDP growth in twenty twenty modest at three point five percent, but positive nonetheless though, uh and it is foreign direct investment and those companies, particularly in pharmaceutical and technology firms that are driving that. Martin, we were just talking about a story on the Bloomberg Um about how Europe is moving toward um vaccine passport so that people

can move around from country to country. Do you think we need something like this, especially on a corporate level, you know, with companies that you know work for, companies that might be in another country. Yes, Carl, I mean think, as you know we now look forward to opening up there obviously needs to be ways of verifying that that can happen safely. The European Commission has proposed a digital Green Path and we're waiting at the moment to see

the details of that presented. But I think essentially, as I understand that, we're looking at proof a person has been vaccinated, results tests for those that couldn't be vaccinated, you know, in terms of testing for a COVID and information on COVID recovery where where that's necessary. And but this is I think it's very complicated. I think, you know, you we need to respect data protection rules, we need

to respect security. We need to respect privacy. So I think you know, we're gonna have to tread slowly and make sure that we get this right, and that's obviously what the Commission is doing at the moment. Can you give us a general idea about how your conversations over the last year have changed with executives companies around the world. Old when they are thinking about investing in Ireland before coronavirus,

and what are they like now? Yeah, so, um, I think you know, firstly, they've changed because we're doing this all virtually, and like everybody else we have we've pivoted virtually and some companies have managed to make that transition very quickly and maybe some less so. And it's obviously much more difficult for companies making physical goods manufacturing. We have kept all of manufacturing opened in Ireland. Most of it is deemed essential because of the types of products

that are being made. In terms of the discussions with executives, you know, the fundamentals of investing in a country still remain the same. You know, executives are interested in those same things what everybody is discussing obviously as what is the future of work? And you know, I think it's clear at this point that we're not going back to where we were, you know, Monday to Friday core hours in the office. There's going to be much greater flexibility.

I think that's a given at this point. But also there is a role for the office, and I think that's clear, and that's what we're hearing from the companies we're engaging with because for reasons of innovation, collaboration, and building team culture, on boarding new team members is a big issue, and also ensuring that those coming into companies at more junior levels that there is some sort of training or apprenticeship model, much easier obviously to do on

site than it is to do remotely. So there is still a future for the office and that regards I want to get your thoughts on potential tax in the tax increase for corporations here in the United States. We had a great story Nancy Cook and Laura Davison colleagues breaking this news yesterday that that President Biden is eyeing his first major tax site since in this next economic plan.

One of those includes raising the corporate tax rate from how would that change the way that American companies think about doing business in Ireland? Would it make Ireland more attractive? Well, listen, I mean I think it's it depends on the overall offering. And similar to when I suppose the last administration introduced its tax changes, and I think I said at the time, you know the devil is basically in the detail here, and you know how it's done and what counteracting measures

are introduced to support businesses. I think you have to see all of that. The headline rate is one thing. I think also we are obviously facing into probably significant global changes on the tax front. During the course of this year. The o E c D process has I

think increased momentum. John as Yellen has I think made it clear that there will won't be a voluntary opt out for US companies and and therefore I think the prospect of a deal politically on global tax is probably further ahead now than it has been for some time. But again, until we see what happens there under both the billers they're looking at, it's it's difficult to say

exactly what impact it will have. From Irlin's perspective, you know, we've at twelve and a half percent corporation tax rate. It is consistent, it's transparent, and it's stable and has

been there for a long time. And I think, you know, while people look at our rate sometimes and think that's the answer potentially because it's a low rate, it's actually around the stability of the race is probably the most important thing, right and interesting right at a time where all of a sudden you could see the US corporate tax rate go from to higher rate, like a lot of movement in just a few years. Um. Having said that,

I gotta ask you, Martin, what's the outlook? What does the global economic environment look like for you and for Ireland uh post pandemic, especially at a time where I think there's still a lot of countries that are thinking about what do we need to do domestically to heal our societies after COVID. Yeah, I think it's very challenging, I think is the short answer. I think that you know, we we had hoped probably that we would have on

wound restrictions in a lot of countries before now. Having said that, I think, you know, if you're told us a year ago that we would have the vaccines options that we have and that they were tested and now being deployed, I think that's a really fantastic outcome from an FDI perspective. I mean, all the global projections suggest that FDI globally are going is going to decline significantly during the course of one again some with estimates up

to decline. So it's going to be a really challenging environment for for US and for other colleagues across the globe as we seek foreign direct investment and um, you know, there's going to be a smaller pool and everybody obviously is going to be looking for that investment because they are trying to drive economic growth within their economies to

pay for the cost of the pandemic. And there's been significant costs for all countries, you know, whether their healthcare costs, whether their supports to business or their support to individuals in terms of a social safety net. How happy are you that we're not talking Brexit? You know, I'm always happy to talk breximitly, Carol, think like how many times

we've talked about it in the past years. It's done to some extent in that we you know, we are now talking post BRIGS that we trade and cooperation agreement, and that's the positive. You know, I think I would have said this time last year that the you know, the objective is to have an agreement between the EU and the UK. It's not ideal, It probably isn't as comprehensive maybe as we would have liked, but you know, it's an agreement nonetheless, and I suppose the core aspects

of that from Ireland's perspective are in there. And one of those core aspects, obviously was that we prevent a hard border on the island of Ireland between north and size. That has been achieved, albeit it has been very challenging to achieve that, and you know, implementing all of this now is the challenge we're going to be dealing with in the days Monsign years ahead. Hey Maarton, we only have ten seconds left, but a year from now, are we doing this in person? Are you back here with

us in the studio? I certainly will be making ver VF for to do that, and I hope you guys will have me. And let's be optimistic, you know, um, you know, certainly I've an optimism bias, and uh, I think we will be. That was the CEO and I d a Ireland. Martin Shannahan. You've been listening to Bloomberg Business Week Extra be sure to listen to our Bloomberg Business Week daily radio show, airing live Monday through Friday

at two pm All Street time. I'm Bloomberg Radio. Watch US two on our daily broadcast on YouTube, just search Bloomberg Global News, and you can also see me on Bloomberg Quicktake, available at Bloomberg dot com, slash qt, and streaming platforms like Roku, Apple TV, Samsung TV, and more. I'm Tim Stanavan and I'm Carol Masser. This is Bloomberg