Updates from Ibec CEO Danny McCoy

CEO Update: Budget Priorities and Are You AI Ready?

Friday, 12 September

The latest CEO Update to Ibec membership from Danny McCoy

Dear member,

As the Dáil resumes next week, Ibec enters a busy period of engagement with Government and the wider Oireachtas, particularly in relation to the new Action Plan on Competitiveness and Productivity launched yesterday.

It is very encouraging to see many of our recommendations from Our Business Ambition campaign, launched in May, reflected in the plan. We regard yesterday’s announcement as a very positive and important step toward future proofing Ireland’s economic model in a time of global change. Budget 2026 must provide the resources needed to underpin the ambitions set out in the plan, and Government must ensure accountability in delivering all elements, particularly the 26 priority items announced.

In our Innovation Ambition paper, we made clear that Ireland must show greater ambition for innovation investment. We therefore welcome the commitments to increase public funding to match international competitors, to reform the R&D tax credit, and to develop a new national Life Sciences Strategy.

As you know, Ibec has consistently highlighted the negative impact of excessive regulatory burdens on businesses, especially SMEs. The inclusion of a ‘Red Tape Challenge’ to reduce regulation across all sectors, along with the application of an SME test to all government measures, represents an important step forward.

Infrastructure remains the single biggest challenge to Ireland’s competitiveness. The Department of Finance’s recent report on population growth projects that our population could reach 7.59 million by 2065, even higher than previously expected. The decisions we make now on infrastructure will determine how we prepare for and manage that growth. It is no surprise that much of An Taoiseach Micheál Martin’s remarks at our annual President’s Dinner at the RDS last week focused on this issue, as did the address by Ibec’s new President, Dr Colin Hunt, who was formally ratified by the Ibec National Council along with Maureen Walsh, Managing Director of DeCare Dental Insurance Ireland, as Deputy President. We are extremely grateful to outgoing President Anne O’Leary for her distinguished leadership throughout her Presidency.

I encourage you to read Colin’s opinion piece on infrastructure , published in Monday’s Irish Times.

It was encouraging to see the commitments in the action plan to remove barriers to delivery, including legal reforms, expediting the EPA Bill, and implementing the outstanding elements of the Kelly Report to accelerate investment decisions. While the plan acknowledges the challenges of Ireland’s high energy prices, which are among the highest in Europe, these proposals must now translate into tangible actions if we are to remain competitive in energy intensive sectors.

This is a critical period for future planning. We need action and time bound commitments. This will be the central message Ibec brings as the Dáil resumes, and throughout our regional Oireachtas outreach, which began last week at our new Western Office in Eyre Square, Galway, and will continue right up to the Budget announcement.

Finally, our Employer Relations team today published Part 1 of Ibec’s annual HR Update – Pay and Resourcing Forecast, focussing on pay data for 2025 and forecasts for next year. You can view our HR Update here.

Regards,

Danny McCoy

CEO

Ibec