There is a lot of hand-wringing about the Irish economy these days, be it infrastructure, housing or a perceived over-reliance on giant firms from overseas who could pull the plug whenever it suits them.
John and Patrick Collison, whose payments firm Stripe is now valued at about $159 billion (€135 billion), have become more vocal about what they think the Irish economy needs.
The research paper they commissioned from University of Galway’s Alan Ahearne, published on Thursday, is credible and urgent.
The warning that Ireland is “over-reliant” on overseas multinationals is not new. But Ahearne’s proposed fixes are worth exploring.
Boosting domestic firms’ productivity is key, he says. That means tax incentives to attract more overseas workers here and boosting “entrepreneurial activity”. That would get more start-ups here and hopefully build big Irish companies as well as attracting the US giants of the day.
Patrick Collison at the Ireland Funds National Gala in Washington on Monday. Photograph: Niall Carson/PA Wire
Ahearne cites the likes of Spain’s “Beckham law” or Israel’s “inpatriate tax regime” to bring in talent. Both use fiscal incentives to attract professionals.
These are admirable ambitions, even if Stripe itself may benefit from personal tax changes that make it easier to bring in overseas staff. Yet it’s hard to believe the likes of IDA Ireland or Enterprise Ireland have not been at least trying to do that already.
This report will stand out from the myriad of other studies on the same topic because of who commissioned it. Whether it will drive actual change though, is an open question.