Category Archives: Business & Environment

Obama move scuttles merger of U.S. & Irish drug companies

New York drug maker Pfizer and Dublin-based Allergan have called off their proposed $160 billion merger, which would have headquartered the new company in Ireland to slash its U.S. tax bill. The deal collapsed days after the U.S. Treasury Department announced new steps to curb such tax-avoiding maneuvers, called “inversions.”

The outcome is “a major win for President Barack Obama, who has been pushing to curb deals in which companies move overseas to cut taxes,” Reuters reported.

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Obama in Ireland in 2011.

For Ireland, the importance “is more in the signal it sends about the hardening international approach to multinational tax than in the specific implications from the collapse of the deal,” Cliff Taylor writes in The Irish Times. “It demonstrates again that the days of using tax as the main attraction for companies to locate here are coming to an end – and that there may well be significant implications for existing big Irish employers in the changes to come.”

The corporate tax rate in Ireland is 12.5 percent. In the U.S., business taxes range from 15 percent to nearly 40 percent. Northern Ireland plans to cut its business rate to 12.5 percent in 2018 to be more competitive with the Republic. But that’s now said to be threatened by Britain’s potential exit from the European Union in a June referendum.

The ongoing debate about the health of rural Ireland

Emotional hand-wringing and serious debate about economic and social challenges in rural Ireland are ongoing matters. The “Vanishing Ireland Project,” which began in 2001, has focused popular attention on this complicated topic. Lately, there’s been another mini-eruption of attention in the press.

In two pieces for the 3 April issue of The Irish Independent, Dan O’Brien insists that Rural Ireland is recovering, despite claims to the contrary, and There should be no caving in to rural populists. He writes:

Is rural Ireland dying? No, is the short answer, even if fears of a depopulated countryside are more than understandable. Over the course of human history, no trend has been more universal and more constant than urbanization. The move from the land into towns and cities has happened across the world. It continues to happen everywhere.

O’Brien says that population increases and job growth in most parts of the Republic contradict suggestions of rural Ireland being left behind and give “only very limited support for the claim that there is a two-speed recovery between urban and rural areas.” He does acknowledge the West remains “a signification exception to the good news story.”

rural ireland

Still, notions that economic recovery do not extend beyond the M50 motorway (Dublin’s Beltway) are both wrong and dangerous, O’Brien says in his political analysis:

The strong sense of grievance in much of rural Ireland is in keeping with the anger meme that has spread across the western world. Some rural dwellers claim the recovery is not being felt in their areas; that they are being ignored and neglected by the Dublin elites; and that they are losing out in all manner of ways. Some have even spoken of “the death of rural Ireland.”

Whether intentionally or not, his piece is published a year to the day after this headline appeared in IrishCentral: The strange death of rural Ireland as we know it. “Rural Ireland is in deep trouble,” John Spain wrote at time. He continued:

“To say that is not to announce anything new because the way of life in rural Ireland has been under severe pressure now for several decades. But the threat to the rural society that is central to the Irish character and to the image we have of ourselves and the image people around the world have of us has increased dramatically over the last decade. And that has been particularly evident during the economic collapse we have just been through.

A few weeks ago in The Irish Times, Dublin museum director Trevor White said there is “comical deference to rural Ireland” in the capital, which “treats rural Ireland with a respect that borders on fear.” Whether this is true or not will be partially revealed in the response to growing demands for a full-time agricultural minister in the new government.

Ireland sells its first 100-year bonds

In a week when Ireland marked the centennial of the 1916 Easter Rising, it also sold its first 100-year bonds, a reflection of the country’s financial turnaround and positive long-term outlook.

The €100 million ($113 million) sale at a 2.35 percent yield is “a testament to the restored confidence markets have in Ireland’s creditworthiness,” Owen Callan, an analyst at Cantor Fitzgerald in Dublin, told Bloomberg. Just a few years ago Ireland needed an international bailout. Then, Irish 10-year bonds hit the 15 percent level.

The National Treasury Management Agency issued the new notes.

Such financial instruments also were around in the 19th century. The latest issue of Irish America contains this story about a collector-owned Fenian bond dating from 1866. The bonds had a 6 percent compounded interest per-annum.

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U.S.-Irish relations, from tin teapots to smart phones

U.S. Ambassador to Ireland Kevin F. O’Malley says he is fond of the 2013 book “A History of Ireland in 100 Objects.” He received a copy upon being named to the post in the fall of 2014.

Ambassador Kevin O'Malley

Ambassador Kevin O’Malley

To O’Malley, a descendant of County Mayo emigrants, the most poignant object in the book is the “Emigrant’s Teapot,” a symbol of Ireland’s massive one-way migration from the mid-19th century to the mid-20th century, and an enduring reminder of home.

But this is the age of the smart phone, a smaller, more powerful object than the tin teapots once carried across the Atlantic. The owners of these modern objects can video chat with each other from either side of the ocean.

Likewise, the U.S.-Ireland relationship also has evolved from its historical roots, O’Malley told the St. Patrick’s Day gathering of Irish Network-DC.

One big example: more Americans now work for about 250 Irish companies in the U.S. than Irish employed by 700 American companies in Ireland, O’Malley said.

Another example: nearly one in six people living in Ireland today has non-Irish parents, just as many U.S. residents are the children of immigrants. Demographics are changing rapidly in both countries.

“We will look different in the future. Ireland will look different,” O’Malley said. “We need to connect to the young people, the next generations.”

To create new economic links between the U.S. and Ireland, O’Malley launched the Creative Minds Series. The monthly programs invite prominent U.S. artists, writers, filmmakers, digital culture innovators, and musicians to share their experience with young Irish audiences.

“The changes of today are much better than in the past,” O’Malley said. “We want to continue to benefit from the same close relationship.”

Then–and who could avoid doing this on 17 March–he sipped some well steeped Irish-American sentimentality.

“All of us have our own teapot,” he said. “We carry it within us. It is something special; something not necessarily definable.”

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From ‘Ireland in 100 Objects,’  this teapot is in the National Museum of Ireland – Country Life, Turlough Park House, Castlebar, Co. Mayo.

 

Ireland 1916: By the numbers

With so much attention this year on the centennial of the 1916 Easter Rising, it seemed like a good time to recheck a great source of historical statistical data: the annual reports of the Registrar-General for Ireland. You can find the 1916 abstract, plus reports for 1887-1922, at the Northern Ireland Statistics and Research Agency website, and other locations.

The London government’s annual snapshot for 1916 was released by Registrar-General E. O’Farrell on 10 July 1917 at Dublin Castle. The report contains only a brief reference to the events of Easter Week in the section of death data. It says:

VIOLENCE: The number of deaths registered in Ireland during the year 1916, as having been caused by violence in its various forms was 2,265, in comparison with 1,955 in 1915, and an average of 1,880 for the ten years 1906-1915. The 2,265 deaths in 1916 comprise 32 cases of homicide, 107 of suicide, and 2,126 other deaths by violence, including accidental cases. … Included in the latter are 412 deaths registered as having been caused by wounds received during the Rebellion of Easter Week. Among them are 315 deaths of civilians, and 97 of military and police, the 315 deaths among the civil population comprising 263 of males and 52 of females. Only 4 of the deaths by execution, following trials by courts-martial, were registered during the period up to 31st December last.

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The General Post Office after the Rising.

Contemporary sources use different figures for the Rising’s death toll. For example, research by the Glasnevin Trust shows 485 men, women and children “killed during or as a direct result” of the rebellion, or 54 percent of the total. The government executed 15 leaders in the immediate aftermath of the Rising, plus Roger Casement a few months later. The reason for the low count in the 1916 annual report is not clear.

The Rising occurred in the 20th month of the First World War, and the number of people leaving Ireland declined as the cost of living increased.

Emigration dropped to 7,302 people in 1916, a rate of 1.7 per 1,000 population (total 4.3 million). This was below the prior 10-year average of 28,071 (6.4 per 1,000) and marked the first time annual emigration fell below the 10,000 threshold since the government began keeping the annual record in 1851.

Read my previous blog post about emigration during Ireland’s revolutionary period, 1912-1923.

The 1916 abstract also includes the average prices of these common provisions: 9 pence for a 4-pound loaf of bread; 22 shillings, 6 pence per hundredweight of oatmeal; 6 shilling, 2 3/4 pence per hundredweight of potatoes; and 97 shillings per hundredweight of beef. These prices are all noticeably higher than previous years back to 1906 shown in the report.

The annual statistical reports were published by E. Ponsbury Ltd, 116 Grafton St., across the street from Trinity College Dublin. Today, the building is advertised as a swanky apartment and vacation rental.

Irish tourism can’t rely on ‘hazy green image’

Irish tourism could grow by as much as 6 percent this year, building on last year’s success, Fáilte Ireland said in its annual review and forecast, released 11 January. The report said:

The recent upturn in tourism fortunes, although very welcome, has been fueled largely by factors external to the tourism industry. Improving economies of key source markets, favorable exchange rates and increased air access all contributed to making 2015 a record year. To build on this initial success, the next phase of growth must be driven by factors from within the sector including; sustaining better value for money and offering more compelling and authentic branded visitor experiences rather than relying on a hazy green image and warm welcome.

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Of course, some of this year’s visitor increase will be driven by black-and-white images of the 1916 Easter Rising, and the very colorful live events commemorating the centennial, especially in the first third of the year. Sustained efforts such as Ireland’s Ancient East and Wild Atlantic Way are also drawing tourists.

The Republic’s tourism authority has raised a few concerns:

The prospect of external shocks, over which the industry has no control, has been highlighted by the recent tragic events in Paris and the consequent lock down of Brussels.  Tourism businesses have raised the possibility that this may have a negative impact on tourism from long haul markets and particularly, the United States.

The report also warns of an “acute shortage” hotel rooms in Dublin city, causing room rates to increase markedly year on year and creating a danger of business being lost due to supply constraints. An estimated 5,000 additional rooms are needed in the capital region.

Mary Robinson on climate change, women’s leadership

Recent flooding in Ireland is linked to global climate change, and those who live on the island can “expect more in the future,” says former Irish President Mary Robinson. Nevertheless, 2015 marked a “significant year for sustainable development” around the world, thanks in part to the milestone climate accord reached in Paris in December.

Robinson spoke 6 January 2016 at the the fourth annual Nollaig na mBan breakfast in Washington, D.C., (photos in previous post). The event, hosted by the Irish American Partnership, raised $12,000 for Ireland’s first presidential library, appropriately honoring the Republic’s first woman president. See my earlier post.

Robinson, who participated in the climate conference, said the gathering of nearly 200 countries was most notable for the attention that was given to smaller, more vulnerable nations. While “the agreement is weak,” she said, “business will have heard that signal” and have to act accordingly.

“This is a new stage in the way we will live with Mother Nature,” Robinson said. “We are in a new era where women’s leadership matters more than ever.”

Here’s Robinson’s September 2015 TED Talk on “Why climate change is a threat to human rights.” And here’s a December 2015 Democracy Now interview with Robinson from Paris.

Robinson did not address the 1916 Easter Rising centennial, or 2016 elections in Ireland and the U.S. (which could produce America’s first woman president). Such matters dominated the breakfast chatter before Robinson’s talk. It appears she wanted to keep the “honorable tradition” (her term) of past presidents avoiding direct comment on Irish policy and politics.

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The Irish American Partnership also released its 2015-2016 Annual Campaign Report during the event. The Partnership “works to empower the next generation of Irish leaders by supporting educational initiatives through direct grants to primary schools, science teacher training, university access scholarships, employment learning programs and … provides forums for visiting leaders from Ireland to speak in the U.S., connecting Irish-Americans with their heritage and promoting economic development through tourism, trade, and mutual exchange.

Mary Robinson addresses Nollaig na mBan in Washington, D.C.

Former Irish President Mary Robinson gave the keynote speech at the fourth annual Nollaig na mBan hosted by the Irish American Partnership. The event celebrates Irish and Irish-American female leaders and the positive impact they have worldwide.

Former Irish President Mary Robinson gave the keynote address at the fourth annual Nollaig na mBan hosted by the Irish American Partnership. The event celebrates Irish and Irish-American female leaders and the positive impact they have worldwide. Her first-in-Ireland presidential library will open in 2017.

Mary Robinson greets guests at the Nollaig na mBan event in Washington, D.C.

Mary Robinson greets guests at the Nollaig na mBan event in Washington, D.C., 6 January 2016.

Brexit and Rising could impact Northern Ireland

A referendum on whether the United Kingdom should exit the European Union could have a big impact in Northern Ireland. The so-called Brexit vote could come as early as this summer or get pushed deep into 2017. The International Business Times writes:

Economists and politicians opposed to leaving the European Union warn that a Brexit would fracture Northern Irish peace by further isolating it from the Republic of Ireland and cutting off local communities from international funding, sending ripple effects throughout the U.K. Supporters of a Brexit, however, said Northern Ireland already has systems in place to continue political and economic relationships with Ireland, facilitating an easy transition out of the EU.

The Irish Times adds that the Republic also has a great deal riding on the Brexit result. The concerns stem primarily from the close economic ties between the two states, particularly in two areas.

First, the UK is by some distance the Republic’s largest trading partner, accounting for 43 per cent of exports by Southern firms in 2012. Second, the two countries’ energy markets are deeply entwined: Ireland imports 89 per cent of its oil products and 93 per cent of its gas from its nearest neighbor.

Meanwhile, this year’s 100th anniversary of the Easter Rising in the Republic is also causing concerns about the North. The Guardian reports:

“…the centenary of the rebellion in Dublin has raised fears that celebrating the exploits of the lightly armed rebels who took on the British army could destabilize the still fragile peaceful political settlement in Northern Ireland, with dissident republicans claiming they are the true inheritors of Easter Week 1916. … Unionists and some historians have expressed concern that the centenary may be used by anti-peace process republicans to claim the 1916 rebellion is “unfinished business.”

Best of the Blog, 2015

This is my third annual “Best of the Blog” (BOB, as my wife calls it), a look at some of the most important news stories, historical anniversaries and personal favorite posts of the past year. The items are not numbered, so as to avoid the appearance of rank. Most links are to my own posts, but a few are to outside websites.

Enjoy. Thanks for supporting the blog. And Happy New Year!

  • Four years into the “Decade of Centenaries,” 2015 proved that even as Ireland remembers its past, Ireland is not bound by its past. This was most dramatically demonstrated in May as Irish voters enshrined same-sex marriage rights in the Republic’s constitution, becoming the world’s first nation to give such approval through popular referendum. The outcome prompted Catholic Archbishop Diarmuid Martin of Dublin to comment: “The Church needs a reality check right across the board, to look at the things we are doing well and look at the areas where we need to say, have we drifted away completely from young people?”
  • Other long-standing Irish institutions also changed in 2015. Clerys, a landmark department store on O’Connell Street in Dublin, closed in June after 162 years in business. … In August, Aer Lingus was acquired by British Airways owner IAG for €1.5 billion after nearly 80 years of state ownership.
  • The erosion of the Irish language continued at “a faster rate than was predicted” by a 2007 study and “demands urgent intervention,” a government agency reported in an update this year.
  • 2015 was the 150th anniversary of the birth of William Butler Yeats. His poem, “The Lake Isle of Innisfree,” was celebrated during the year. And, of course, “Easter, 1916.”
  • The Republic’s official remembrance of the Easter Rising began in August with a commemorative re-enactment of the funeral of Jeremiah O’Donovan Rossa. The original Dublin funeral of the Fenian leader, who died in New York, set the stage for the Rising eight months later. Pádraic Pearse’s oration at Rossa’ graveside became a call to arms that continues to inspire Irish patriots. One of my Kerry relatives kept a copy of an August 1933 reprint of the speech, cut from the pages of The Gaelic American.
  • I also reflected on my copy of a 1953 St. Patrick’s Day greeting from another Kerry relation.
  • In Northern Ireland, the International Fund for Ireland launched a new “Community Consolidation-Peace Consolidation” strategy for 2016-2020 focused on removing some of the more than 100 “peace walls” that separate Catholic and Protestant communities. “We have a role to take risks that governments can’t take,” IFI Chairman Dr. Adrian Johnston said during a September briefing at the Embassy of Ireland in Washington, D.C. … But a new poll showed that support for removing the physical barriers has dropped to 49 percent, compared to 58 percent in 2012.
  • The British and Irish governments announced a new political accord to overcome various crises in the North. … Seventeen years on from the historic 1998 Good Friday Agreement, former U.S. Senator George Mitchell told a Washington audience the peace talks got off to “a very rocky start” due to the long history of mistrust in Northern Ireland and “no habit of listening to the other side.”
  • An RTÉ/BBC poll revealed two-thirds of respondents living in the Republic favor political reunification of the island within their lifetime, while just under one third of those surveyed in the North share the view. … In what was described as a “rogue action,” the Republic’s tricolour flag flew over Stormont for a few hours in June.
  • Irish Minister for Diaspora Affairs Jimmy Deenihan, speaking at the  Embassy of Ireland in Washington, announced “a new strategy to improve Ireland’s connection with the diaspora.”
  • More historical records continued to be made available in 2015 for online inspection, including:

Dublin Metropolitan Police Detective Department’s “Movement of Extremists” reports leading up to the Rising, held at the Irish National Archives;

Long-awaited Catholic parish records, held by the National Library of Ireland; and

Fenian Brotherhood records and O’Donovan Rossa’s personal papers, held by The Catholic University of America in Washington, D.C.

River Shannon by Therea M. Quirk.

Departed in 2015:

  • Six college students, five from Ireland and one holding Irish and U.S. citizenship, were killed 16 June in Berkeley, California, when the fifth floor apartment balcony where they were partying collapsed and plunged them 50 feet to the ground.
  • Dublin-born actress Maureen O’Hara, who co-stared with John Wayne in the 1952 screen hit, “The Quiet Man,” died at 95. … More than three dozen other notable Irish and Irish American deaths from the arts, sports and politics are listed here.

From the Archive: