Archive for the ‘Ireland’ Category

Your personal rights versus your community responsibilities

I read two things in the Sunday Business Post this week. The first was a “work to welfare” program that would allow unemployed to claim benefit and work, pay tax, if they also did community service. The Minister Eamonn O’Cuiv is at the very least being innovative and open to a more enlightened view of society that is not always black and white when it comes to operating with the Black economy.

The second article I read was in the David Mc’Williams opinion “A matter of life or debt” where he relates the struggle of a businessman on reduced turnover battling it out with the local council who insist on a higher rent for land that is rented to the business. The businessman is unable to pay the increase and the council refuses to reduce their demand.

Is there perhaps compromise and a win-win opportunity to be had in all parts of society if there is a more open and innovative approach to resolving problems rather than trying to plug the cashflow issue of businesses or social welfare fraud reduction? Continue reading


Pfizer may cost €1 billion lost tax to Ireland 2012

Off Patent drugs are major tax loss in 2012How dependent is Ireland tax revenue on patent drugs going off patent in 2011?

Without an extensive study by analysts and having been involved in the pharmaceutical industry for the last 15 years this is a sobering back of a napkin calculation. Lipitor will account for €7-€8 billion in sales this year, maybe, down a couple of billion since Zocor, a competitor, went generic. When a statin comes off patent the company that makes the proprietary version should see a sales loss of 80% or more.

Depending on how much of that profit it retains in Ireland as all production is here so we can see that the revenue in 2012 for Lipitor could be best case at €1.5-2 billion profit which is potentially a drop of €700 million of tax revenue. Take in the Viagra active ingredient production which also goes off patent and you could see a drop of tax revenue in 2012 from Pfizer alone of €1 billion.

This will put a serious hole in the tax receipts which may not be included in the Department of Finance numbers for that and subsequent years.

Ireland could introduce a Private Sector Currency

There has to be a realisation here that we are not the type of race that gets up in arms and ousts the Government and we are not going to change that any time soon. NAMA legislation has been passed, the EU will most likely find good reason to agree to the terms this week and indeed the transfer of loans will commence.

So the insiders will stiff the outsiders…. Shift happens. I am not in any way condoning the mess that was made, but the fact is that the mess is made and it needs to be fixed.

Now what are the ideas to go about doing this? Well the Greek 10% off everything is a big idea. It is not far off the old Dunnes Stores concept of “pile ’em high and sell ’em cheap”. We are all getting used to the campaign to reduce our carbon footprint. Everyone has to do a little more to use a little less of fossil fuel.

A private sector currency can not only reduce the cost of Irish goods and service by 10% but can encourage consumers to spend more on Irish goods and services, reward tourists for coming to Ireland in the form of vouchers and possibly start to reduce unemployment. Continue reading

Foreign Risk Capital in Ireland

Foreign Risk CapitalThat wonderful image of a tourist asking for directions from an Irish rural resident. “Well to get to Listowel, luv, I wouldn’t shtart from here…”

We used tax incentives and low cost educated english speaking employees to attract FDI. Now we need a much more refined solution for a much more complex opportunity. If we expect our “Smart Economy” to get Ireland out of the mess it is in, practical alternatives are needed.

Chris Horn in his Sunday Business Post article and his blog refer to Foreign Risk Capital being needed and should be encouraged is absolutely right. This is our way out if we have the vision to implement the necessary steps to encourage more of it to come to Ireland. FRC providers would fall over themselves to get here if the environment and opportunities exist. What is needed is to create reasons for FRC to come here.

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Enterprise Ireland should do Telepresence

Re-Imagine Ireland Inc

Re-Imagine Ireland Inc

Following on from my a Twitter comment, I posted this in the “Re-Imagine Ireland Inc” discussion on A small idea with a big reach. I refer to Enterprise Ireland and IDA, but SFI and scientific outreach facilities could equally make use of this facility

One of the most valuable resources that Enterprise Ireland and indeed the IDA have is the 33 or so commercial development offices around the world. This innovation back in the 80’s has yielded a significant return on the investment of those offices in bringing Ireland hundreds of thousands of jobs. This was ahead of its time and still plays a major role in FDI and indigenous companies expansion programs.
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