Ireland's generous corporate tax environment was single biggest factor for multi-nationals in business

Ireland's generous corporate tax environment was the single biggest factor for multi-nationals in business here.

A client survey by the IDA found the four biggest advantages for companies were corporation tax, the third-level education system, water supply and the flexibility of the workforce.

However, the housing crisis is proving a challenge with availability and costs listed as the most negative factors for doing business in Ireland.

READ MORE: Man defecates in bottle and inserts it in Re-turn machine in dirty protest over controversial scheme

READ MORE: 'An unimaginable tragedy': Two men dead, baby injured and woman in critical condition after Armagh collision

They were highlighted as two of four “red” issues for firms along with the perceived high levels of personal tax and the planning process.

There were five factors ranked “pink” in the IDA survey where satisfaction ratings were below 50% by companies.

These related to the cost and availability of commercial property, transport infrastructure, support in managing environmental impact, along with gas and power supply costs.

A review of the client survey said there were clear “decreases in satisfaction evident for energy costs and housing”.

However, it said firms remained uniform that the corporate tax environment was the single most attractive part of doing business here.

The summary added: “While strong overall satisfaction levels are again evident with the Irish education system, only 16% of clients are very satisfied that the system is producing graduates with the skill sets that their business in Ireland requires.”

It said the number of clients reporting difficulties in hiring talent was the highest it had ever been since their surveys began.

A summary said: “76% [of companies] report difficulties sourcing skills for their company in Ireland with engineering being the key area of difficulty.”

The survey also examined the impact of Covid-19 with only 30% of companies saying it had a negative or “fairly negative” impact on them.

Remarkably, 26% of IDA clients said the pandemic had a positive or “fairly positive” impact on them.

Nearly half of the companies questioned said the level of support offered by the Irish government had been better than it was in other countries with fewer than 10% saying it was worse.

There was also a clear fall in the number of companies that were planning to “expand the mandate” of their operations in Ireland.

In 2019, 85% of the clients were planning to expand that role but when asked in 2022, that had fallen to 59%. By far the biggest challenge for companies was in trying to find skilled staff, especially in software and data analysis.

Three in four client firms said they were experiencing difficulties in hiring people with 41% saying there was a particular lack of software engineers.

A staggering 91% of the companies asked by the IDA had no union for their workforce, the survey also found.

Asked about the Irish education system, there was a rise in satisfaction levels with 83% saying they were either satisfied or very satisfied. Only one in 100 companies indicated they were “very unsatisfied” with third-level teaching according to the research.

The survey also asked what areas the IDA should focus on influencing with skills and education cited by more than a third.

Join the Irish Mirror’s breaking news service on WhatsApp. Click this link to receive breaking news and the latest headlines direct to your phone. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.