Oireachtas Joint and Select Committees

Wednesday, 20 March 2024

Committee on Budgetary Oversight

Stability Programme Update: Discussion (Resumed)

Dr. Robert Kelly:

I do not think we necessarily looked at an all-island approach to this matter. In a general sense, though, what is needed in terms of increasing the capacity of the State, and what Ireland has been quite good at, is having a very well-educated workforce and one that is deployable. I refer to what economists call "high-value-add" items, within the multinationals, for example. This is what has been exceptionally successful for Ireland. Regarding some of what the Deputy has said around housing and rents, etc, yes, there are capacity constraints there, but the key to addressing this context is having a labour market that is dynamic and well-educated. I refer as well to our legal system. All these things are very attractive when it comes to foreign direct investment.