Ireland Country Brief
Overview
Ireland, also called the Republic of Ireland, has a population of approximately 4.2 million. The country occupies 26 of the 32 counties that constitute the island. The remaining six counties in North-East Ulster are part of the United Kingdom of Great Britain and Northern Ireland.
Ireland was established through the conclusion of the Anglo-Irish Treaty in 1921. The Constitution of 1937 and the Republic of Ireland Act 1948 severed Ireland's last formal links with the United Kingdom. Ireland remained neutral during the Second World War and does not belong to any military alliance. Ireland became a member of the United Nations in 1955 and joined what is now the European Union (EU) in 1973.
Political Overview
Political System/Structure
Ireland is a republic, with a system of parliamentary democracy. Under the Constitution, legislative power is vested in the Parliament (Oireachtas). This consists of a President, who is head of state; the Lower House (Dail); and the upper house (Seanad or Senate). The President and Senate have limited functions and powers. The Dail, consisting of 166 seats, is the primary legislative body, and it selects the Government. It is directly elected at least once every five years by a system of proportional representation. The Senate, which has 60 members, is elected through a system of electoral colleges and its periods of office correspond with those of the Dail. In Ireland, the Prime Minister is known as the Taoiseach (pronounced 'Tee-shock').
Government
On 7 May 2008, the leader of Fianna Fail Party, Mr Brian Cowen, became Prime Minister of Ireland, following the resignation of Mr Bertie Ahern. Mr Cowen had previously served as Minister for Finance and Deputy Prime Minister under the Ahern administration.
Major Parties
The two main parties, Fianna Fail and Fine Gael, do not divide on a right/left basis on political, economic or social issues. Both are centre-right and have their roots in differing community attitudes to the 1921 Treaty of Independence (from the UK). Fine Gael represents the tradition that accepted the treaty as a stepping stone to an eventual republic of the whole island. Fianna Fail represents the tradition that rejected the treaty because the present six counties of Northern Ireland were excluded from the outset. These traditions are still reflected in slightly different approaches towards the Northern Ireland issue but there is bipartisan support for the current peace process and the Belfast (Good Friday) Agreement (see below).
EU/European Issues
Active participation in European Union policy-making is a priority for the Irish Government. Ireland joined the (then) European Community in 1973 and, through the frameworks of European Political Cooperation (EPC) and now the Common Foreign and Security Policy (CFSP), has sought to coordinate its foreign policy with other member states. Despite the strong support of the Irish Government, the Irish voted “no” to the Lisbon (EU reform) Treaty in a referendum on 12 June 2008. Taoiseach, Brian Cohen, said in a speech to the Dail that the no vote did not signify a rejection of Europe and that he was determined to resolve the situation. Foreign Minister Micheál Martin said the Government would need time to reflect on the way forward, the Union would continue to be indispensable to Ireland, and Ireland had an important contribution to make to the Union’s future evolution.
Northern Ireland Peace Process
In December 1999 the Westminster parliament devolved power to the Northern Ireland Assembly and its Executive Committee of Ministers. The Northern Ireland Assembly was established as a result of the Belfast (Good Friday) Agreement of 10 April 1998. The Agreement was the outcome of a long process of talks between the political parties of Northern Ireland and the British and Irish Governments. The Belfast Agreement significantly reduced terrorist activity and delivered tangible, community-level benefits.
Economic Overview
In the 15 years to 2007 Ireland’s GDP growth per capita was the fastest in the OECD. Ireland today is one of the wealthiest countries in the world with a per capita GDP of US$59,924. GDP growth in 2007 was estimated at 5.3 per cent but is forecast to slow to 1.8 per cent in 2008 (IMF/EIU). The unemployment rate, which was 4.7 percent in 2007, is expected to increase to 5.7 percent in 2008 before rising further to 7.5 percent in 2009.
Bilateral Relations
Australia has had an Embassy in Dublin since 1946.
Australia and Ireland have a number of bilateral agreements covering areas such as taxation, social security, medical treatment for travellers and working holidays for young people.
People to People Links
The Irish were among the first settlers in Australia and contributed substantially to the development of contemporary Australian society. Irish migration has been almost continuous throughout the period of European settlement of Australia. The first 155 Irish convicts (from County Cork) arrived in Sydney in 1791. In addition to convicts, more than 300,000 other Irish settlers migrated to Australia between 1840 and 1914. Approximately 30 per cent of Australians are believed to have some Irish ancestry. In the 2006 census about 1.8 million Australians said they were of Irish background and 457,000 Australians indicated they had one or both parents born in Ireland.
There are approximately 80,000 holders of Irish passports who are permanent residents in Australia. The Working Holiday Maker scheme between Australia and Ireland is very popular and up to 10,000 Irish, especially young Irish people, may be visiting Australia at any one time.
High Level Visits
High level visits are important in promoting cooperation and understanding between Australia and Ireland.
Irish Minister for Transport Noel Dempsey, TD, visited Canberra in March 2008 and met Federal Transport Minister the Hon Anthony Albanese MP.
The then Prime Minister, Mr Howard visited Ireland, in May 2006, meeting his Irish counterpart, Mr Bertie Ahern, and the Irish President, Mrs Mary McAleese, and addressing the Irish Parliament.
Bilateral Economic and Trade Relationship
Trade
Commercial relations and trade with Ireland are growing steadily and more than 660 Australian companies exported their goods and services to Ireland in 2007. Ireland was Australia's 28th largest merchandise trading partner in 2007. Two-way merchandise trade was valued at approximately A$2.3 billion in 2007. Total exports to Ireland were valued at approximately A$226 million and total imports were valued at approximately A$2.1 billion. Major Australian exports include wine, coal, medicaments and medical instruments.
Australia’s services export trade to Ireland in 2007 was valued at A$382 million and our services import trade from Ireland in the same period was valued at A$223 million. Tourism continues to grow as the key sector of bilateral services trade.
As of 2008, more Australian companies are operating across Ireland: Harvey Norman has expanded its operations to twelve stores across Ireland selling electrical and furniture goods; Aconex, a company which develops software for project management, is servicing the Samuel Beckett Bridge project in Dublin; Dr Lewinns has secured cosmetic counters in two of Dublin's major department stores; and iconic Irish retail group Brown Thomas has unveiled seven new Australian designers (including Josh Goot, Tina Kalivas, Kirrily Johnston, Mad Cortes, State of Georgia, Lisa Ho and Shakuhachi), to showcase the latest Australian fashions in stores throughout Ireland.
Investment
Australia has significant and rapidly growing investment links with Ireland. Latest ABS figures show that in 2007 Ireland was the 25th most important overseas destination for Australian investment, valued at A$1.3 billion. Australian investment in Ireland in 2007 was valued at A$3.2 billion.
Australian companies that have invested in Irish subsidiaries include Babcock and Brown, Integrated Packaging, Michell Leather, Biocycle and QBE Insurance. In the past three years the number of Irish companies in Australia has doubled. Australia is Ireland's number three priority destination in Asia. Irish companies operating in Australia include Independent Newspapers (APN), Irish Distillers and Aldiscon. Bank of Ireland and IONA Technologies have regional headquarters in Melbourne and Perth respectively.
Trade and Investment Strategies
Ireland's primary export destination is the European Union and this heavily influences Ireland's trade policy agenda. Ireland has benefited significantly from the Common Agricultural Policy, receiving guaranteed prices for its exports and free access to EU markets. However, following the support of the Irish Farmers Federation, Ireland did not oppose June 2003 reforms that introduced greater market orientation into EU farm production.
Though Ireland's trade policy is determined at the EU level, Ireland and Australia share many common objectives in international trade policy, such as liberalisation of services, e-commerce and provision of technical assistance to developing countries.
Market advantage
Ireland has promoted itself as a European regional base offering a skilled workforce and attractive concessions. New opportunities for business cooperation are opening up, thanks in part to the establishment in 1993 of the Irish-Australian (now Australasian) Business Association, which complements its Australian counterpart, the Irish-Australian Chamber of Commerce and Industry.
Ireland has attracted foreign investment by offering competitive operating costs, low corporate taxation of 12.5 per cent (dropping to 10 per cent for some specific manufacturing industries), generous financial incentives, and a highly skilled workforce. It is now one of the top host countries for United States direct investment in Europe. Ireland is likely, however, to face increased investment competition from new member countries in the EU offering investors equal access to the European single market and cheaper production costs.
Export Opportunities
The Irish market is important to Australia in wine and services but there is scope to further diversify our exports, including in services and high technology products.
Last reviewed date: 20/08/2008