Since
the mid 1990's, Ireland has experienced consistent
growth rates of up to 10% per annum. This
has been attributed to years of strong government
planning through the implementation of five-year
National Development Plans. These plans provided
for large-scale investment in infrastructural
projects and the focussed development of Ireland
as a base for multinational export-oriented
companies.
National
Wage Agreements have formed an integral part
of these development plans. Their success
has been facilitated by the partnership approach
adopted by the government and union representatives
to economic development. These wage agreements
have carefully controlled the cost of labour
producing a highly skilled yet competitively
priced labour force.
Generous
incentives, especially targeted at the manufacturing
and internationally-traded service industries
have made Ireland an attractive base for multinational
companies. Manufacturing and certain service
industries are currently subject to a corporate
tax rate of only 10% with no limits on profit
repatriation. This is helped by Ireland unique
position as the only english-speaking member
of the European Monetary System with access
to a market of 370 million people of the EU.
In
1998 the national growth rate was 7% with
a forecast for continued high growth levels
into the new millennium. Despite high level
of growth the economy has had little visible
effects on inflation, currently measuring
1.2%. The "Celtic Tiger" has rooted
itself firmly in Kildare whose natural and
human resources have placed it in a prime
position to benefit from the current national
growth.
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