Back in May, Irish Minister Dara Calleary helped Huawei celebrate 20 years of doing business in the country
The Irish economy has been increasingly attracting Chinese investment, but does it come with a reputational cost?
In 2020, 25 Chinese companies had operations in the Republic of Ireland. By this year the number had jumped to 40.
For some this new flood of yuan into the country offers Ireland an opportunity to reduce its reliance on being the European base for US tech giants such as Apple and Alphabet. And it creates additional jobs.
But for an increasing number of critics, Ireland being home to Chinese firms links the country to the human rights abuse allegations levelled against some such companies. These include Chinese clothing firm Shein, which since May 2023 has had its European headquarters in Dublin.
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Shein has long been attacked for how the workers who makes its clothes are treated. And earlier this year it had to admit that it found child labour in its supply chain.
The Irish government is also in the diplomatically awkward position of luring many of the very Chinese companies that the US has sanctioned.
Two cases in point – telecoms firm Huawei and drugs company WuXi Biologics.
In May, Ireland’s Minister of State for Trade Promotion, Dara Calleary, welcomed a report celebrating how Huawei was contributing €800m ($889m; £668m) per year to the Irish economy. The firm has three research and development centres in Ireland.
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This is the same Huawei whose telecoms network equipment the US has banned since 2022 due to concerns over national security. The UK has moved in the same direction, ordering phone networks to remove Huawei components. And mobile phone networks in many Western nations, including Ireland, no longer offer Huawei handsets.
Meanwhile, WuXi has, since 2018, invested more than €1bn in a facility in Dundalk, near the border with Northern Ireland.
Earlier this month the US House of Representatives passed a bill to restrict US firms’ ability to work with WuXi, again citing national security concerns. The bill now has to go to the US Senate.
WuXi
WuXi has a big facility in Dundalk, near the border with Northern Ireland
Ireland’s Industrial Development Authority is the government agency whose mandate is to attract foreign investment into the country. It has three offices in China, and says it seeks “to promote Ireland as a gateway to Europe for Chinese investors”.
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Another Chinese firm that has its European headquarters in Ireland is social media video app TikTok, which is owned by Beijing-based parent firm ByteDance. And the parent of Chinese online retailer Temu moved its global headquarters from China to Ireland last year.
Prominent critics of Ireland rolling out a “green carpet” to Chinse firms include Barry Andrews, one of Ireland’s members of the European Parliament. “Human rights and environmental abuses should not be allowed in Irish shopping baskets,” says the Fianna Fáil MEP.
He points to a US Congress report from last year, which said there was “an extremely high risk that Temu’s supply chains are contaminated with forced labour”.
“One person’s bargain is another’s back-breaking work for poverty wages,” adds Mr Andrews, whose party is part of the current Irish government coalition.
Critics also argue that there are substantial differences between US tech firms operating in Ireland and Chinese ones – for example, about openness.
For instance, Huawei and WuXi declined an opportunity to be interviewed for this article. Shein provided a spokesperson who was only prepared to speak off the record, then did not reply to follow-up questions.
Some leading economists question whether Ireland even needs the few thousand jobs that the Chinese firms provide.
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“Ireland’s economy has been running at near full employment for the best part of a decade,” says Dan O’Brien, chief economist at Ireland’s Institute of International and European Affairs.
Irish unemployment was 4.3% in August 2024, only slightly above its all-time low of 3.90% in October 2020. Economists generally consider an unemployment rate of around 4 to 5% to represent full employment.
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Huawei has a big presence in Ireland but the main Irish phone networks no longer offer its handsets
Mr O’Brien also points to the fact that a fifth of Ireland’s private-sector employment is directly, or indirectly, attributable to foreign direct investment (FDI), according to official figures. He says this is too high.
It is so elevated because Ireland has one of the lowest standard corporation tax rates in Europe, at 12.5%. This is the tax that all but the very biggest firms have to pay on their profits. By comparison, the UK rate is 25%.
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Mr O’Brien says that Ireland’s level of FDI was already too high without the Chinese investment on top. “Given we are already overly dependent on FDI in a world that is at risk of deglobalisation, we don’t need another major source of FDI on top of that from the United States.”
He adds EU rules should be “actively used to discourage Chinese FDI” in Ireland.
The Irish government tells the BBC that it “supports the common EU approach to China on de-risking… [but] the government has been clear that de-risking is not decoupling”.
Irish Minister for Enterprise, Trade and Employment, Peter Burke adds: “In an era of continuous global uncertainty, Ireland offers a stable and pro-business environment. Multinational companies, including Chinese companies, recognise these opportunities.”
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Given how much Ireland’s economy does depend on FDI, some economists say Chinese investment in Ireland can be seen as a welcome insurance policy in case some US firms pull out.
“There is a huge pressure on US tech companies to re-domicile and re-invest in the US,” says Constantin Gurdgiev, an economist at Trinity College Dublin and the University of Northern Colorado.
Meanwhile, other European countries, such as Poland, Estonia, Slovakia, and Malta, have made inroads in courting US investments, presenting Ireland with new competition from countries with cheaper housing and less rain.
Dr Gurdgiev also points to “the forever-looming threat of global corporate tax reforms”, further eroding Ireland’s low corporation tax. The country has already signed up to Organisation for Economic Co-operation and Development rules, and as a result, this year introduced a 15% corporation tax rate for firms with an annual turnover of more than €750m ($835m; £625m).
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And earlier this month, the European Court of Justice ruled that Apple had to pay Ireland €13bn in unpaid taxes. It followed after the European Commission accused Ireland of giving Apple illegal tax advantages.
Dublin consistently argued against the need for the tax to be paid, but said it would respect the ruling.
Dr Gurdgiev adds that Ireland is acting “with some strategic foresight” in courting Beijing. And that even if Dublin is welcoming the likes of Huawei, he says that the strength and influence of the Irish diaspora in the US means that Washington will turn something of a blind eye.
He argues that this is why the US authorities have been “largely laissez-faire in their approach to chasing tax optimization schemes that Dublin has been developing over decades”.
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Plus, he says Ireland provides the US, EU and China with a useful “neutral ground” where both US and Chinese tech firms can operate.
Dr Gurdgiev adds that by putting itself in such a position, Ireland is playing a “dangerous geopolitical game” for a small economy.
However, he says its diplomatic closeness to the US should make its position “relatively safe”.
Austria’s far-right Freedom party scored a historic victory in the country’s parliamentary election on Sunday, with the result consolidating pro-Russian, anti-establishment forces in central Europe.
The FPÖ was projected to win just under 29 per cent of the ballots cast, according to a near final official estimate of the vote late on Sunday, bolstering the claim of its firebrand leader Herbert Kickl to become Austria’s next chancellor.
It is the first time the FPÖ, which has embraced increasingly hardline and extremist policies on immigration and the war in Ukraine in recent years under Kickl, has come first in a national election.
The new terminal will be completed in the summer of 2025Credit: Getty
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Bosses confirmed that the new Wetherspoons will ‘feature nods to sporting greats of the North in its decor’
The new pub is part of a £1.3 billion project that will transform Terminal 2.
The popular pub chain will join major brands like Chanel, Pandora, LEGO, and Greggs, all expected to be added to the terminal.
Bosses have confirmed that the new Wetherspoons will “feature nods to sporting greats of the North in its decor”.
The pub’s name has yet to be announced, but future customers are assured they can look forward to the usual Wetherspoons offerings.
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Brits will be able to enjoy discounted cooked breakfasts along with a wide selection of beers, wines, ciders, and spirits.
The highly-anticipated Terminal 2 is set to open in the summer of 2025 and will feature the Great Northern Market.
The new food hall will be able to seat a whopping 472 travellers and will hope to bring the best of Manchester’s street food scene to the airport.
Manchester Airport retail director Richard Jackson said: “We are proud of the world-class facilities on offer in Terminal 2, and a key part of our vision for the finished terminal is to provide an unrivalled experience for passengers shopping and dining before they catch their flight.
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“We’re delighted to be bringing such a varied offering to the second phase of our brand-new Terminal 2, with local brands complemented by well-known high street names and options to suit every budget.”
Bosses recently announced a huge change for Brits jetting off from the major airport.
‘Queues moving well’ in Dublin Airport following major power outage that saw huge delays for holidaymakers
The airport, currently being revamped, has confirmed that 11 airlines will move terminals his fall.
The airlines, including Jet2.com, will move from Terminal 1 and 3 to the brand new Terminal 2 between October and November.
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More airlines are expected to follow the move next year.
Several airlines have begun operating from the revamped Terminal 2 – part of which opened in 2021 – which is being doubled in size to cater to 70 per cent of the total flyers using the airport.
Major airlines including Austrian, Lufthansa and Swiss will move to the brand-new terminal in October.
This will be followed by Egyptair, SunExpress, Biman Bangladesh and Jet2.com which will start operating in the new Terminal in November.
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Passengers who have already booked parking or launce access near Terminal 1 or 3 can contact the airport to change their bookings, Travel Weekly reports.
However, passengers who have booked parking or lounge access through third-party agents will have to contact the provider.
A huge renovation project at Manchester Airport is nearing completion, with plenty of brand-new facilities that will excite passengers.
The £1.3billion project, which was first announced back in 2015, was split into two phases.
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The early stages of the project saw Manchester Airport’s Terminal 2 more than double in size before its west side reopened to passengers in July 2021.
Now in its final phase, work is focusing on the east side of Terminal 2, including a second pier with additional boarding gates.
Construction work on the pier began back in June 2023, and it is nearly complete, as reported by Marketing Stockport.
When the brand-new pier opens, it will double the aircraft capacity at Manchester Airport.
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INCREDIBLE PLANS
Airbus A380 passenger jets will also be compatible with the new boarding gates.
There are plenty of other features for passengers to get excited about when the expansion opens in 2025, including 27 new restaurants, bars and shops.
Specific shops will be announced later this year but several local brands including Manchester brewers Joseph Holt and Seven Bro7hers are slated to be inside the revamped terminal.
The revamped Terminal 2 at Manchester Airport will feature a “market-style food hall” and there will also be a “boutique shopping area”.
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There will also be a champagne bar, artisan cafes and a brasserie.
A new security hall, complete with 3D scanners, will also be added during this phase and a new dual taxiway system designed to improve airfield efficiency.
When the west side of Terminal 2 opens in 2025, it will become the main terminal at Manchester Airport, catering for more than 70 per cent of passengers.
Jill Fraser, Manchester Airport Transformation Programme delivery director, said: “The last 12 months have seen an incredible amount of work and it’s amazing to see the project really taking shape.
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“From the creation of more than 500 jobs, to the work to improve the way the airfield works – this is a huge project but one that will have so many benefits for our passengers.
“We’ve already started to see some of the benefits of the programme, with our passengers who have used Terminal 2 giving amazing feedback and the award of the prestigious Prix Versailles.
“And the exciting thing is that we’ve not even finished yet – so we’re looking forward to an epic 18 months ahead. We’re proud to connect the North to the world and are looking forward to passengers seeing everything we deliver.”
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Deloitte’s UK partners took home about £1mn on average for the fourth year in a row, despite the Big Four firm suffering a sharp slowdown in revenue growth due to waning demand for its advisory services.
Partners received payouts of £1.01mn on average for the year to the end of May, 5 per cent less than the previous year, following an increase in the number of equity partners who share in the firm’s profits. Its top ranks swelled from 714 last year to 749, while the profit pool to be shared between them remained flat at £756mn.
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Deloitte is the only Big Four firm in the UK to report an average partner payout higher than £1mn in the last two financial years.
Revenue at Deloitte’s UK firm, which also encompasses its Swiss operations, rose by 2.4 per cent to £5.7bn — a sharp slowdown on the 14 per cent growth recorded in the previous 12 months. In the year to May 2022, Deloitte had boosted revenue by 10 per cent.
The slowdown was driven by a slight contraction in the firm’s consulting division — its largest service line — where sales fell 1 per cent to £1.58bn as a tougher economic backdrop forced companies to cut spending on external advisory firms.
Revenues at Deloitte’s financial advisory practice also declined 2 per cent during the year as merger and acquisition activity remained subdued.
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The weaker results underline the difficult year faced by the Big Four — Deloitte, EY, KPMG and PwC — which were all forced to cut hundreds of jobs each due to tougher market conditions. PwC last week said its UK revenues rose 3 per cent during its most recent financial year, while average partner pay fell 5 per cent to £862,000.
“This is a strong set of results in a challenging market, against a difficult economic and geopolitical backdrop,” said Richard Houston, Deloitte’s UK senior partner and chief executive. “Like many businesses, we had to carefully consider our cost base and make some difficult choices this year.”
Audit and assurance was Deloitte’s best-performing service line during the year, with revenues climbing 8 per cent to £941mn. The firm’s tax and legal division also posted sales growth of 3 per cent to £1.25bn. Risk advisory sales remained flat with sales of £495mn.
The firm said it invested £263mn in salary increases and bonuses during the year.
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Houston sounded a more upbeat note looking ahead, saying that the UK’s economic outlook has been improving in the past 12 months. He added: “A recovering economy, alongside the government’s commitment to work with business in tackling economic and technological challenges, offers the prospect of stronger growth to come.”
Deloitte is in the process of overhauling its global operations to cut costs and reduce the group’s complexity. Under the plan, its main business units will be reduced to four — audit and assurance; strategy, risk and transactions; technology and transformation; and tax and legal — from the five the firm has had for the last decade.
The firm last month posted global revenues of $67.2bn, a 3 per cent increase on the previous year, its weakest sales growth since 2010.
Deloitte’s headcount at its UK and Swiss business remained broadly flat at 27,573 at year end.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
UK chancellor Rachel Reeves is unlikely to cut pension tax relief for higher earners in her Budget next month because it would hit teachers, doctors and other better paid public sector workers, according to a report released on Monday.
Reeves had argued as an opposition MP for a flat rate of pension tax relief — a move which would significantly boost Treasury coffers — but a report by pensions consultancy LCP argues she will shy away from this move.
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Sir Steve Webb, a respected former Liberal Democrat pensions minister and now an LCP partner, said cutting higher rate pension tax relief would hit a significant group of “mid-ranking and senior public sector workers — a group which the government is unlikely to want to alienate”.
The LCP report said that Reeves is likely to be taking a keen interest in pension tax relief — with a net annual cost estimated by the Treasury at around £48bn — but reform is fraught with political problems.
Currently, when people and their employers pay into a pension, their contributions are exempt from taxation up to a set annual limit.
When savings are later withdrawn as pension payments, these are taxed like other income, with people able to usually take up to 25 per cent as a tax-free lump sum, up to a maximum of £268,275.
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George Osborne, former Conservative chancellor between 2010 and 2016, considered reforming pension tax relief in his 2016 Budget but dropped the plan after a fierce backlash from Tory MPs.
The LCP report said that Reeves is more likely to consider levying a rate of national insurance contributions on employer pension contributions, a change that would be less politically painful.
It noted that excluding these contributions from NI costs the Treasury a headline £23.8bn a year, and also encourages the practice of “salary sacrifice”, specifically to reduce NI bills.
“The chancellor could create a new rate of NI — eg 2 per cent — on employer contributions, and raise a couple of billion pounds by doing so,” the report said.
“The big advantage for the chancellor is that in most cases this would have no immediate pay packet effect on voters so would have lower political saliency. It could also be implemented relatively quickly,” it added.
Webb said: “The chancellor will be looking for relatively simple changes which can be introduced quickly and will raise large sums with least voter anger.”
In 2016, Reeves — then a backbench MP and a former shadow work and pensions minister — proposed setting a “flat rate of pension tax relief” at 33 per cent, below the 40 per cent tax rate paid by higher earners.
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“This would be a welcome boost for basic rate taxpayers and a cut in the savings subsidy for higher earners, while still rewarding savings,” she said at the time.
The Treasury said: “We do not comment on speculation around tax changes outside of fiscal events.” Reeves has said that tough decisions lie ahead on spending, welfare and tax in the Budget.
The Labour manifesto committed the government to not increase taxes on “working people”, with specific commitment not to increase National Insurance, the basic, higher, or additional rates of Income Tax, or VAT.
At the other end of the scale, smaller firms like Ecotricity and Utility Warehouse claimed first and second place respectively.
They were then followed by E (gas and electricity) and Outfox the Market.
The league table rated customer service between April to June this year.
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The average rating is now 3.07, which is a rise of almost 13% since the start of 2024 and a return to levels seen before the energy crisis.
However, the charity has warned more needs to be done as three in five customers are served by suppliers which score below average in the league table.
The news today comes after energy regulator Ofgem recently challenged suppliers to improve customer service, amid complaints about billing problems.
It also said the sector was found to be lagging behind others with higher customer satisfaction, such as banking.
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Citizens Advice says “people deserve better” from their energy supplier and is renewing its call for a Consumer Duty.
How to cut energy costs and get help with FOUR key household bills
This involves a new set of rules to give Ofgem stronger powers to hold companies to account and “set a higher bar” for customer service in the energy industry.
The charity says it’s already helping record numbers who have fallen behind on bills.
Recent research shows one in four people are so worried about increases in energy costs that they say they’ll be forced to turn off their heating and hot water this winter.
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It also found that 5million people are currently living in households in debt to their supplier.
Energy companies are responsible for providing support, like affordable payment plans, to people who can’t afford their bills.
The charity is encouraging people to get in touch with their supplier if they need help.
It is also urging firms to continue upping their game so people can access the support they need this winter.
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The report comes ahead of the October price cap rise which kicks in on the 1st.
Overall, Citizens Advice found energy companies performed better in their ability to resolve customer complaints and call wait times have also continued to improve.
Dame Clare Moriarty, chief executive of Citizens Advice, said: “We’re bracing ourselves for another challenging winter. Whilst suppliers’ customer service improved in the spring, firms need to continue upping their game to ensure people can access support in the colder months.
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“With energy debt at a record high and the removal of previous support packages, the government must also urgently introduce targeted bill support that reflects the realities of people’s energy needs.”
Responding to Citizen Advice’s report, Ofgem says it has been “working hard” with the sector.
An Ofgem spokesperson said: “Energy consumers deserve an easy and reliable service from their supplier.
“We’ve been working hard with the sector to drive up standards and create a more customer-centric energy future.
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“This includes strengthening our procedures to take firmer action against suppliers when things go wrong and toughening up the rules around customer bills for greater accuracy.”
The regulator added that it’s clear the work of the government, regulator, consumer groups and firm is starting to make a difference.
Adding: “But there is lots more work to be done to ensure exceptional customer service is the norm across the board and the energy sector is among the best sectors for how customers are treated.
“We will use all the powers at our disposal to get there.”
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Where does your energy firm rank?
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Citizens Advice scored suppliers out of five
Citizens Advice has scored suppliers out of five on customer service categories including call wait times, how long it takes to get an email reply and accuracy of energy bills.
Utilita came 15th in the ranking with a 1.86 rating for April to June – it also only scored 1.5 stars out of five.
In 14th place is EDF, with a rating of 2.41 and just two stars.
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Rebel Energy received a 2.68 rating – putting it in third to last position. It received 2.5 stars.
Utilita, EDF, and Rebel Energy have all been contacted for comment.
At the other end, Ecotricity secured the top spot with a 3.77 rating and 3.5 stars.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
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EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
When you make a complaint, make sure you follow this so they have the information they need to resolve the issue.
Simply explain what the problem is and what you want your supplier to do about it.
Check your energy supplier’s website for an explanation of how to launch a complaint.
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Energy suppliers have eight weeks to respond and come to a decision.
If it doesn’t or you’re not happy with the response, you can take the firm to the Energy Ombudsman.
The Energy Ombudsman may be able to help if you have a complaint about an energy or communications provider.
Before you can submit your complaint to it, you must have logged a formal complaint with your provider and worked with the firm to resolve it.
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You must also have received a so-called deadlock letter, where the provider refers your complaint to the Energy Ombudsman.
You can also complain if you haven’t had a satisfactory solution to your problem within eight weeks.
The Energy Ombudsman then bases its decision on the evidence you and the company submit.
If you choose to accept its decision, your supplier then has 28 days to comply.
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The Ombudsman’s decisions are binding on the energy company.
If your supplier refuses to follow the instruction, the Ombudsman may get in touch with Ofgem to remedy the situation – but there’s no set period for escalating issues to the regulator and it’s not up to the customer.
If an individual chooses not to accept the Ombudsman’s final decision, they lose the right to the resolution offer.
Customers still have the right to take their complaints further through the courts.
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But remember this can be a costly and lengthy exercise, so it’s worth thinking carefully before taking this step.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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