Inclusive hiring has become vital to modern business practices as organisations strive to create a more diverse and equitable workplace. Fergal McPhillips argues that inclusive hiring is not just about a diverse organisation but about attracting and retaining top talent and creating an environment where employees’ unique perspectives are valued. Inclusive hiring is the act of seeking out and hiring employees who are diverse in their perspectives, backgrounds and thought processes. Generally speaking, it’s about recruiting people from underrepresented groups, such as people with disabilities, racial minorities and individuals from other marginalised groups. Organisations must overcome unconscious bias in their hiring and remain open to diversity in all forms, whether the diversity of thought, cultural background or embracing differences in gender expression. An organisation must recognise that different ways of thinking, experiences and skills can benefit it. Benefits Inclusive hiring is increasingly becoming a priority for organisations in today’s diverse business landscape. According to a study by McKinsey, companies with diverse workforces outperform their less diverse counterparts in terms of financial performance, with ethnically diverse companies being 36 percent more profitable than those who are not as diverse. Furthermore, an inclusive hiring process is a more equitable hiring process and can help reduce the risk of discrimination and legal liabilities. A report by Glassdoor found that 80 percent of jobseekers between the ages of 18 and 35 consider diversity an important factor when considering job offers. Inclusive hiring is essential for organisations that seek to create a diverse, equitable and inclusive workplace culture that can attract and retain top talent and drive long-term business success. It can also help improve employee engagement, satisfaction and morale while making a workplace more diverse, welcoming and productive. Creating an inclusive culture To engage in inclusive hiring and ensure it sticks, you must develop an inclusive company culture that truly embraces and celebrates the many differences that make people brilliant. Creating a diverse working environment is a process, not an event. It won’t happen overnight. It takes time and commitment. Your organisation must be ready to invest in the process, willing to hear new ideas, prepared to change its behaviours and encourage employees to change theirs too. Creating an inclusive company culture is critical in attracting and retaining diverse talent and driving long-term business success. This includes investing in diversity and inclusion training for all employees, ensuring equitable policies and practices, and establishing employee resource groups to provide a sense of belonging and community for underrepresented groups. In addition, fostering an open and transparent communication culture is important, where employees feel safe to voice their opinions and concerns without fear of retribution. This can be achieved through regular town hall meetings, one-on-one meetings with managers and regular employee engagement surveys. Ultimately, creating an inclusive company culture requires a commitment from leadership to prioritise diversity and inclusion in all aspects of the business and to take proactive steps to create a workplace where all employees feel valued, respected and supported. Fergal McPhillips is a Team Leader of Accounting & Finance Recruitment at Morgan McKinley

The European Union’s recently implemented Pay Transparency Directive is set to transform the way companies across the EU approach pay equity and transparency. Doone O’Doherty explores steps organisations should take to implement the Directive. At the end of March 2023, the European Parliament adopted the EU Pay Transparency Directive. This will go through the final formalisation steps, including Council adoption, and enter into force 20 days after publication in the EU Official Journal.  EU Member States will be required to transpose the Directive into national legislation within three years – very likely in 2026.  Given the proposed legislation’s complexity and implications, organisations should start preparing now to ensure a smooth transition from a legal, operational and strategic perspective. Under the Directive, greater transparency will be required in four critical areas.  Gender pay gap reporting and equal pay Organisations above a certain employee threshold will be required to publish gender pay gap figures externally.  Where a pay gap of five percent or more is found in any category of worker and other criteria are not met, a joint pay assessment must also be completed. Recruitment   Organisations will be required to provide information on pay (e.g. pay bandings) as part of the recruitment process, such as adding pay ranges to job adverts or sharing this information with applicants. They will no longer be able to ask candidates about current pay to determine offers.  Pay approach and philosophy  Employers with more than 50 workers must provide workers with information on the criteria used to determine pay and pay progression. Average pay levels Workers will have the right to request information on the average pay level of workers doing similar work to them, broken down by sex. This must be provided within two months of the request.   To whom does this apply? While local implementation may vary, the Directive suggests that the requirements listed above may apply not only to employees but also apply to other worker types (e.g. contractors and gig economy workers).  Key steps to take Given the significance of the measures to be introduced, organisations must identify their biggest risks and opportunities and prioritise activities. This will allow for developing an effective change plan to ensure readiness for the upcoming legislation and wider transparency requirements.  For some organisations, the impact of the EU Pay Transparency Directive will be significant, potentially leading to the widespread transformation of critical people policies and activities. Successful change (including impacted systems and processes) is a multi-year programme.   It will be critical for companies to: Understand the impact: Identify key stakeholders and gain a high-level understanding of key risks and opportunities for your organisation. Provide an initial briefing to identified stakeholders on the Directive and its implications for your organisation.  Assess organisational readiness: Deep dive into the key risks and opportunities identified through interviews and document reviews. Complete a readiness assessment to prioritise activities with stakeholders. Develop an implementation plan: Develop a high-level implementation plan to embed change based on agreed priorities, risks and opportunities.  Doone O’Doherty is Partner of People & Organisation at PwC 

With stakeholders pulling in different directions and competing for your time, staying focused on your daily goals can be difficult. Moira Dunne explains how to manage stakeholders trying to take time away from your scheduled tasks. Stakeholders are the key people you interact with in your role. It is essential to maintain good relationships with them, support and be responsive to them, but this can impact your work plan and put you in a tight spot. We feel pressure to respond immediately and don’t want to upset them by saying “no” to a request, even if it is not urgent. Furthermore, the stakeholder may be a senior figure, so you feel obliged to acquiesce, even if you don’t have time. As a result, you prioritise the new request but sacrifice important deliverables and your own personal time while letting others down. Overall, it can feel like the workday is out of control, leading to stress and anxiety. Here are four tips on managing requests from stakeholders. 1. Take control To help control your time, be clear about what you need to get done each week and block time in your diary for this priority work. As new requests crop up, you can assess which is the higher priority task. You may need to do both, but you will not drop the planned work without rescheduling it first. A baseline plan gives you the confidence to discuss your response regarding the work needed, and not having a plan in place makes it harder to do that. 2. Manage your response time When responding to stakeholders, the key is to say yes on your own terms. For example: Ask when they need the task completed; Inform them when you can work on the task; and Negotiate a time that suits you both – be as flexible as possible. As a result, you don’t automatically drop your planned work but still support the stakeholder as best you can. 3. Review urgent requests Urgent requests generally fall into two categories: things that couldn’t be anticipated; and things that were not done in time and became urgent. Many people don’t plan ahead. You can’t change their work style but can change your interaction with them. Take a few minutes on a Friday afternoon to check in with stakeholders who often have last-minute requests. Tell them you are planning your week and to send on any requests for the next one before close of business so it can be scheduled in. This prompts them to think ahead about requests instead of waiting until the last minute while subtly telling them that they should let you know in advance if they want time in your diary. 4. Agree expectations If starting a new relationship with stakeholders, set expectations with them beforehand. Find out what the service level agreement says and ask what timing will work best for them. Agree the response time for general queries (while acknowledging that genuinely urgent situations can be handled differently). Once agreed upon, it is easier to stick to these response times in the cut and thrust of a busy day. 5. Drop the guilt Do not feel guilty if a task from a stakeholder does not fit into your schedule. If you can’t do something, there will be a good reason, such as not qualifying as a higher priority than your current work or being within your role’s remit. Moira Dunne is the founder and director of beproductive.ie

Jillian O’Sullivan sheds light on the new Irish law mandating identity verification for company directors and its potential implications for businesses The Companies (Corporate Enforcement Authority) Act 2021 contains a provision requiring the directors of Irish companies to provide their Personal Public Service (PPS) number on certain documents submitted to the Companies Registration Office (CRO) to allow for verification of a director’s identity.  The CRO has announced that this requirement will be effective from 23 April 2023. Application All directors of Irish companies will be required to provide their PPS number to the CRO when filing the following forms:  Form A1 – Incorporation application; Form B1 – Annual return; Form B10 – Change of company officers or their particulars; and Form B69 – Notice of cessation of company officer where a company has failed to file the notice. PPS number verification The CRO will verify the director’s first name, surname, date of birth and PPS number submitted electronically with the data held by the Department of Social Protection (DSP). In order for there to be a match between the two sets of data, the first name and surname submitted to the CRO must exactly match the names associated with that PPS number in the DSP database. The CRO has confirmed that it reserves the right to reject any submission where there are discrepancies between the information submitted and the information held by the DSP. PPS retention When the PPS number filed with the CRO has been validated, it will be retained securely in an irreversible hashed/encrypted format and stored securely. PPS numbers will not be accessible by any employee of the CRO or any other party, and they will never be shared with any third party. The CRO will then match the hashed/encrypted version of the PPS numbers to future filings, avoiding duplication of director records. Directors with no PPS number If a director does not have an Irish PPS number, they must apply for a Verified Identity Number (VIN) by completing a Form VIF (Declaration as to Verification of Identity) and filing it with the CRO. The Form VIF must state the director’s name, date of birth, nationality, and address, and it must be sworn in the presence of a notary in the director’s home country. Digital or electronic signatures cannot be accepted on Form VIF. Once the Form VIF has been processed successfully, the CRO will issue a VIN to the director and the presenter of the VIF. This must be used for all future CRO filings for any company to which that director is appointed. If a director does not have a PPS number but has previously been issued a Register of Beneficial Ownership (RBO) number for filings made with the Central Registrar of Beneficial Owners, then the director can use their RBO number as their VIN for CRO filings.   The VIF will not be publicly available on the CRO searching system. Non-compliance If any person fails to comply with this new requirement, they shall be guilty of a category four offence resulting in a fine of €5,000. It will also mean a company cannot complete their filings and could suffer late filing penalties and possible loss of audit exemption.  Next steps If they have not already done so, now is the time for companies to start collating their directors’ PPS numbers or RBO numbers and establish whether any of their directors will need to apply for a VIN. To avoid any unnecessary delays with filings, directors and their company secretarial providers should review information about them held by the CRO (e.g. first name and surname) and identify any inconsistencies between such information and the data stored by the DSP. Jillian O’Sullivan is Partner of Corporate Compliance at Grant Thornton

Accountants are discovering new ways to use AI for marketing purposes. Maryrose Lyons explains how they can leverage generative AI to create business content As discussed in my last article, many accountants have already taken a special interest in using generative AI, such as ChatGPT, to create opportunities for marketing growth. If you’re not already leveraging this technology within your organisation, here are six ways accountants can use this technology in their marketing efforts. 1. Market research and strategy ChatGPT can be used to identify emerging market segments and identify opportunities, potentially helping accountants to tailor their services and marketing strategies accordingly.  It can assist in developing comprehensive marketing strategies, ensuring that all marketing efforts are focused and effective. 2. Content creation Generative AI can be used to support content production, such as blog posts, articles and social media updates. These can be done in minutes, allowing an organisation to focus on clients. 3. Social media ChatGPT can be used for strategies, engagement and content production at scale for social media sites such as LinkedIn and Twitter, increasing engagement with potential clients and connections. 4. Email Email marketing can be elevated through more personalised email campaigns and client updates that do a better job of helping busy accountants stay connected with existing clients and generate new leads. 5. Marketing assets Brochures, flyers and client presentations can be made more visually engaging by using apps like Midjourney to create high-quality images based on text commands. 6. Keyword research Identifying relevant keywords and optimising website content for search engines is an important part of marketing. Accountants can leverage generative AI apps to help create content that search engines will pick up. Generative AI is an innovative tool that could help you to streamline mundane tasks while freeing up resources for more creative and complex work. Maryrose Lyons is the founder of Brightspark. Brightspark is offering a Digital Marketing with ChatGPT course on 27 April 2023

A recent survey suggests that Irish CFOs are placing less importance on ESG considerations than they did a year ago, despite growing stakeholder interest, explains Derarca Dennis Ireland’s financial leaders are optimistic about the future despite current challenges, identifying investment in talent as one of their top priorities, the EY Ireland CFO Survey 2023 has found. Interest in environmental, social and governance (ESG) issues has, however, faded over the past year and this is a cause for concern. Just six percent of the 151 finance leaders surveyed by EY Ireland cited increasing the sophistication of non-financial reporting as one of their top strategic priorities for the five years ahead, down from 15 percent in the 2022 survey. Only 10 percent saw opportunities in sustainability and decarbonisation as a priority for driving growth in the year ahead. It is essential to view these findings in the context of the timing of both surveys, however. The 2022 survey took place before the Russian invasion of Ukraine at a time when the world was emerging from COVID-19. There was a decidedly optimistic view of economic prospects and a growing focus on the need to tackle the climate emergency. Conditions in early 2023 could hardly be more different. Spiralling energy costs, inflation at levels not seen for decades, rising interest rates and continuing geopolitical volatility have combined to focus business minds on more immediate survival and growth concerns. ESG viewed as compliance The overall results of this year's EY Ireland CFO Survey suggests that ESG is still regarded as a compliance and regulatory issue rather than as a source of commercial opportunity. Forty-three percent of our respondents pointed to sustainability regulatory compliance as a key focus for the next two years, while just two percent identified non-financial and ESG reporting as a priority for the same period. What is concerning is that organisations not covered by regulations (current or imminent) could face difficulties winning new business or maintaining relationships with existing customers. Organisations that are covered by the regulations, and that have set decarbonisation targets, increasingly require their supply chains to meet the same standards, with potentially severe consequences for failing to prepare adequately, so collaboration across the supply chain is essential. Financial and training implications Organisations raising finance already have to answer questions about sustainability performance and social impact from banks, private equity houses and other potential investors. It is, therefore, imperative to make ESG/non-financial reporting an integral part of their core strategy. There was also a degree of discordance in the findings. When talking about the evolving role of the CFO, 54 percent of respondents claimed their role now includes a greater focus on ESG and non-financial reporting, and 60 percent described their non-financial/ESG performance monitoring and reporting capability as basic or not mature. Despite this, attaining non-financial/ESG reporting skills was identified as a priority for the next five years by just 15 percent of the financial leaders surveyed. Lack of leadership buy-in A lack of endorsement from senior leadership and a paucity of expertise and experience within the finance team were cited as key barriers to more effective ESG reporting at an organisational level. Some 30 percent of the finance leaders surveyed said it was not considered a priority among leadership, which may lead to unaddressed ESG risks in the future. While the current macroeconomic environment and business climate can justify some diversion of attention away from the ESG agenda, the fact remains that it cannot be divorced from the broader needs of the business. Indeed, ignoring ESG will present significant risks in an environment where a business’s ESG credentials and sustainability performance will increasingly become key competitive differentiators. Future-focused CFOs need to be aware of the importance of the ESG ecosystem and mindful of the environment in which they operate, which not only includes Ireland but also the European Union. They must ramp up resource allocation to enable their finance teams to meet rapidly growing ESG and non-financial reporting requirements. Failure to take these steps could see businesses falling behind those competitors that are addressing the ESG agenda today. You can read the full report at EY.ie. Derarca Dennis is Assurance Partner at EY Ireland

Julia Rowan answers your management, leadership and team development questions I recently moved into the public sector and am leading a department of 45 staff led by seven long-serving managers. The department is well-structured, and the segregation of duties is well-documented. However, motivating the team of managers is proving difficult. The word ‘change’ is a no-go area. I’m finding one-to-one meetings work, but in group settings, there is very little interaction.  A. There is a lot going on here, and I wonder if your team senses your frustration. It can be scary for a team when an ‘outsider’ comes in to lead them, so I would take a long-term view—going slowly, supporting your team, praising what is working, and building trust.   Read between the lines. Your one-to-ones are working, but group settings are not. What feedback are you getting here?   Use the one-to-ones to discuss what your managers want from the team meeting. Then design these very carefully.  Try to meet in person. Start each meeting with a simple ‘check-in’ question, something that connects with the managers’ real world. This could be, ‘what do you want from today’s meeting?’, ‘what’s your biggest challenge at the moment?’, or ‘what’s your long-term focus?’.  Perhaps you could give each manager five minutes to update colleagues on their work. You may find some common themes coming out of the one-to-ones that could be brought to the team meeting: problems that could be aired and shared or, even better, progress made. It could be useful to suggest a strategy session looking at what is working well and how the team can build on this, as well as current challenges. Get curious about your team’s successes and what it has achieved.  The team would need to get a clear sense that you notice what is working and are not just ‘ticking the box’ so that you can move on to the problem areas.  All of your managers have good-sized teams and people managers always need support. Be explicit and intentional about this. Building trust with you will help them to explore and accept change.  My new boss joined recently from another organisation. I applied for the promotion and did not get the role. I’m okay with that and I like my new boss. He is getting his feet under the table and beginning to make suggestions about what we should do. Often, he suggests things that we have tried before (and which didn’t work) or he overlooks important issues. I don’t know how to disagree or make suggestions without sounding negative, closed or jealous. A. This is a great example of where the feedback we want to give (like “we tried that and it didn’t work”) could sound negative, but where your intention or concern is positive (i.e. to ensure that we don’t waste time).   Be positive. Voice the concern. Share the feedback. For example, “I think revising our service offering is a great idea. I’m not sure whether you are aware that we tried that before and our clients pushed back. Would it be useful if I talked you through what happened?”.   Julia Rowan is Principal Consultant at Performance Matters Ltd, a leadership and  team development consultancy. To send a question to Julia, email julia@performancematters.ie

A shared passion for business and sustainability has helped David and Marguerite Lawlor make a success of their growing venture Watermark Coffee Husband and wife David and Marguerite Lawlor own and run Watermark Coffee, which supplies and services coffee machines for corporate and hospitality clients and sells sustainable coffee brands Woodland Coffee and Green Ocean Coffee wholesale and online. The Lawlors are both Chartered Accountants who trained with KPMG and employ 19 people in Dublin. Here, they tell Accountancy Ireland about their experience running a business. You acquired Watermark Coffee in 2007. What prompted you to go into business together?  Marguerite: During my time with KPMG, I gained valuable exposure to the financial services sector, and then I moved into life assurance. When we came across Watermark, it seemed like the business could have potential. Even though we had a small child at the time, we weighed it all up and decided to go for it. We negotiated a Put and Call option to purchase Watermark Coffee from the previous owners in November 2005. This involved David starting as Managing Director with the option to purchase the business with an agreed price for assets, goodwill, and a formula to allow for any further movement in net assets.  At the time, the business employed six people selling and servicing coffee equipment. Just three customers accounted for 80 percent of sales. The option was for a five-year period, but allowed us to walk away with no contractual commitment.  David: I’ve always enjoyed the cut and thrust of business. My father was one of the founding partners of JPA Brenson Lawlor in Dublin and my brother, Ian Lawlor, is the Managing Partner there now.  I realised early on that being a Chartered Accountant gives you a great edge in business and instils confidence and knowledge at a young age.  I received fantastic and varied training with KPMG and worked with really clever people, but like Marguerite, my heart leaned towards a career in business, rather than business advisory.  I worked for a few years in industry before starting to look for opportunities to run our own business. We started talking to the previous owners of Watermark two years before I seriously got into talks to buy it.  What was the process of acquiring an existing business like? David: It was challenging. There were numerous operational, contractual, and sales-related challenges. With any small business, there is also a concentration of technical knowledge, contacts, and know-how.  We couldn’t justify purchasing the business in a normal share transfer arrangement. There were just too many risks.  Instead, we proposed the Put and Call option, which allowed us to get a start on addressing any challenges while working on a strategic way forward.  One year later, in early 2007, we exercised the option and acquired Watermark Coffee.  Would we recommend this method of acquiring a business now? In a word, yes.  Buying an existing company can save you a lot of time setting up basic business structures—from running stock management systems to developing terms and conditions of employment and everything in between.  There are significant risks involved in acquiring a small business, however, so it’s really important to structure an agreement that helps to mitigate as many as possible.  How has Watermark evolved in the years since?  David: The financial crisis hit just after we bought the business. Eight months in, the subprime mortgage crisis was taking hold in Europe and we had acquired a business dependant on finance being available to our customers.  Our response was to keep reinventing ourselves. We changed the way we engaged with the market. Rather than just selling equipment, which is fine if there is available credit, we started renting our machines in 2011. We were only selling commercial coffee equipment at that time and we had a small group of customers, so we tried to broaden our customer base and access new markets, such as the UK, and became a distributor for commercial Gaggia coffee machines over there in 2009.  That was a fantastic opportunity as there wasn’t a lot happening in Ireland at the time, but it did involve setting up a UK business from scratch.  After several attempts in 2011, we managed to successfully launch an equipment rental option in the Irish market, which was still deeply impacted by the lack of available credit. This increased our relevance in the market and the phone started ringing a bit more.  By 2014, we launched our first coffee range. It was a great supplementary product to our coffee equipment and it allowed us to maintain a much closer relationship with our customers. Woodland Coffee launched in 2020. A sustainably sourced coffee, Woodland funds tree-planting on a 30-acre site we purchased near Pallasgreen in Limerick.  Our customers for this speciality grade arabica coffee include Virgin Media, Docusign and Twitter. Buoyed by our success with Woodland Coffee, we decided to launch our second range, Green Ocean, this year. It is our most ambitious endeavour yet. Tell us about the sustainable aspects of your business? David: Green Ocean Coffee went on sale in January with three speciality grade arabica coffees, including single origin and blended coffees.  For every 1kg of Green Ocean Coffee sold, one square metre of seabed in Clew Bay, Co. Mayo, is being restored.  We commenced this restoration project last July with Clew Bay Oyster Co-Op. We are reseeding the ancient oyster and seagrass beds in special areas of conservation in Clew Bay.    Seagrass sequesters carbon 35 times faster than the same area of rainforest. Oysters also sequester carbon, but filter the water, enabling sea grass and other marine plants and fish to thrive.  As divers and sailors ourselves, we have witnessed enormous change to the marine environment over the past 20 years and sustainability is at the heart of everything we do.  The projects we support have to be authentic, worthwhile, local, and transparent. When it comes to climate action, authenticity trumps everything else. What has your strategy for the business been to date? David: Our strategy has been to stay relevant to the market. We are never going to be the biggest.  Globalisation will ensure that others take that spot, but we can be one of the best and, with Green Ocean Coffee, we can involve our customers in our restoration activities.  This can be as basic as providing simple updates on their contribution to the restoration, hosting talks by the marine biologists working with us, or organising site visits to Clew Bay—and, if they are really interested, a scuba dive over the reefs! We want to make the restoration work real and fun for our customers and their staff. Green Ocean Coffee is about the positive steps we can take and how that makes a meaningful difference.  How do you divide up the responsibilities involved in running the business? Marguerite: We both have very different skill sets. David works on the sales and creative side of the business as he loves talking. I take the lead on operations and finance—basically, making sure that we are meeting our promises to our customers.  We have a great operational team. After our engineers go on the road to service and install machines, I will ring each customer to ask about their experience. We get a lot of feedback that way.  I also oversee the financial side of the business, which allows David to focus more on sales, marketing, and creativity.  I’ve found that my training as a Chartered Accountant has really helped me to set up and manage processes for new staff as we’ve expanded and to deliver on our promises to customers. We really try to keep business talk to the office and make decisions with our staff rather than over the dinner table and we meet with our sales team and operational managers every two weeks to discuss how we are doing.  The coffee business is very competitive and fast-moving, so fast effective communication is a real strength in our customer service delivery.  Tell us about the biggest business lessons you have learned so far? David: First, if I see something wrong, I try to act upon it immediately, even if it is painful. If I’m not sure what to do there and then, I sleep on it and act on it the following day.  Second, I’ve learned the importance of continually reinventing what our business means. This is really necessary, but also a lot of fun.  Third, discomfort comes with the job spec. As soon as I realised this, I become much happier co-running the business. Marguerite: Keep in touch with your customers and listen to their feedback. Customer service is at the heart of every business and every role within our business is crucial.  It was open discussion with our team that led to the development of Woodland Coffee and Green Ocean Coffee.  Do you think there is a specific mindset you need to run a business successfully? David: You have to be incredibly enthusiastic and driven to be self-employed. This mindset is contagious, and customers will get it and want to be involved, so it really works.  Running your own business is also a little ‘all or nothing’. You need to throw yourself in 100 percent. Once you have a genuine interest in what you’re doing and you do it with enthusiasm, entrepreneurship will come easily.  What are your plans for Watermark Coffee in 2023 and beyond? David: We want to restore 180 more hectares of seabed in Clew Bay by getting as many like-minded businesses as possible to partner with Green Ocean Coffee in the year ahead. After that, I’m sure we’ll find another couple of hundred hectares of seabed somewhere else!

If the European Union is to protect its democratic way of life, the bloc must transition from soft power actor to hard power player, writes Judy Dempsey “Europe has never been so prosperous, so secure nor so free. The violence of the first half of the 20th Century has given way to a period of peace and stability unprecedented in European history.”  So begins the opening sentence of the EU’s first ever security strategy document, presented in December 2003. Nearly two decades on, it’s worth revisiting this pithy analysis. It is optimistic. It speaks of an “arc of stability” around Europe.  It is realistic. Europe has to consider terrorism, migration, hunger, conflicts, and bad governance. EU member states cannot go it alone in tackling these problems. Now, however, this document must be reconsidered in the light of Russia’s brutal invasion of Ukraine in February 2022. This war taking place in Europe right now has several repercussions for the EU.  It is not just about providing as much financial, political and moral support as possible to Ukraine and its refugees. Nor is it about increasing the sanctions on Russia (if indeed they will change Russian president Vladimir Putin’s attitude towards destroying Ukraine).  The war in Ukraine is about the future security of Europe—and this includes the EU, NATO, all non-EU and NATO members and the countries of Eastern Europe.  If Europe wants to protect its democratic way of life, it has to start embracing hard power, but hard power has never been an intrinsic component of the EU.  Its foundations were built on democracy and a peace project—intentionally so, after the appalling destruction of World War II, the Holocaust and the centuries of wars and rivalry between France and Germany. The peace project should have been revisited during the Balkan Wars of the 1990s. The status quo prevailed. Yes, the EU began establishing defence structures, but they were focused on peacekeeping and crisis management missions. Hard power was not part of the kit.  Defence was instead anchored in soft power. This entailed training national police forces in the neighbourhood, providing substantial amounts of development aid, and lifting trade restrictions.  Ultimately, the EU attitude toward Eastern Europe was benign and meant different things to different member states, depending on their geographic location. And there was a perception that Eastern Europe was a part of Europe that straddled the EU and Russia.  The war in Ukraine is finally changing this mindset. Across the EU, with variations of urgency, there is an emerging consensus that the war is about the security of Europe.  When the war began, the EU went into overdrive, mobilising €1 billion for military assistance to Ukraine that would be taken from the European Peace Facility.  This is an off-EU budget set up to fund emergency assistance measures. Essentially, it amounts to a military fund.  There are several other defence packages, which include training the Ukrainian armed forces. This military assistance to Ukraine says two things about the EU.  First, its soft power has been ‘upgraded’ to providing hard power support for Ukraine. It is sinking in that a Russian victory in Ukraine would have devastating consequences for the rest of Eastern Europe and, by implication, for the EU.  EU member states are also slowly realising that the original peace project based on stability, security and democracy, has to be quickly overhauled. Soft power now needs hard power to defend values, citizens and democracy.  Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe

Clever branding can mean the difference between success and failure for small businesses competing in a crowded market, writes Gerard Tannam Branding is a tool available to every business. Every type of business can compete for their best customers with a strong brand that influences choice.  Because a smaller business can play to the singular strengths of its brand relationships with customers to distinguish it from others, it can level the playing field with its own competitive advantage. A strong brand is good for business. It provides an advantage over competitors by distinguishing a business from them in a way that matters to customers and influences their choices.  Despite its importance, however, this simple business tool, which is available to every business, is often misunderstood, underestimated, and underused, particularly by smaller companies. ‘Brand’ can be defined in many ways: as a mark of origin or quality, as image or reputation, as a proposition or promise, and even as a badge of community or a shared belief system.   None of these definitions is entirely satisfactory, however. While each definition says something true about what a brand is or can be, none captures the part a brand plays in choice. A definition of brand As well as being a tool that businesses use to influence choice, brand is also the tool that customers use to make their choices and reassure themselves that they are correct.  When customers are spoilt for choice or do not have the time or inclination to analyse every buying decision, they often rely on brand to help them choose. And so, the brand tool is used in two different though complementary ways:  a business uses brand to help it become the natural choice of its customers;  its customers use brand to help them make the right choice of product or service.  A brand is a tool that influences choice by reflecting the relationship between buyer and seller and the value they exchange. Marks of quality or identity, such as names, symbols or logos, are means of representing the brand relationship and its value, rather than being the brand. Wedding rings, for example, symbolise a relationship (marriage) between two people – they are not the relationship itself.  The brand bridge To understand brand and how it works, consider the relationship between buyer and seller as a ‘bridge’. Just as a bridge is designed to enable people to cross over safely, quickly, and easily from one side to the other, a brand bridge enables people to exchange value safely, quickly, and easily. The two-way traffic on the bridge of give-and-take between buyer and seller suggests a partnership of equals, both of whom want something the other has and must agree on the value to be exchanged through the transaction. Brand bridges are more handshake than arm wrestle, a basis for good and sustainable business. A definition of branding Defining brand as a tool for business leads to a definition of ‘branding’ as the influencing of choice by building a relationship between buyer and seller based on the value they exchange. A brand relationship establishes a connection between a business and its customers around the value each understands the other is offering.  Branding involves putting the brand relationship to work to build and maintain the commercial relationship with existing customers and turn potential buyers into new customers. Why branding matters to small businesses Success in business comes down to an ability to influence choice. A superior product or service only takes a business so far.  Many hardworking businesses have brought an exceptional offering to market and failed. To be successful, a business must influence enough of the right kind of customer to choose what it brings to market. Brand relationship plays a critical role in the choices customers make. Even in a busy marketplace, where customers are spoilt for choice, a strongly branded business can lead its market and command a premium for its product or service.  Every business has a brand, strong or weak. The brand’s strength or weakness results from actions taken by the business in building the relationship with its customers.  A strong brand is especially important for small businesses, which are unlikely to have the spending power or marketing resources available to larger competitors.  The smaller business can play to the strengths of its brand relationship with its customers to distinguish it from other businesses in the marketplace, and so level the playing field.  Five steps to defining a brand 1. Define the value to be exchanged The value to be realised through the brand relationship is not set by one side or the other but must be agreed. For any relationship to work both parties must continue to see and realise its value.  However, while the brand relationship is defined by the value sought by the buyer and offered by the seller, this must at least match the seller’s asking price for the exchange to work.  The asking price, which the business requires for the exchange to be profitable, is a useful starting point for defining value.  This is typically based on the costs of the resources the business must invest in the relationship, plus its margin or premium.  Then the business considers how the customer is likely to rate the benefits on offer, if this accumulated value matches or tops the asking price, and whether they are likely to  pay it.  2. Identify and target the ‘best customer’ For the brand relationship to work, it is vital that the business carefully chooses the type of customer with whom it and its value proposition are best matched.  When business development lacks focus, a business will attract a wide variety of prospective customers, some well matched with it, but many not.  A business that deals with too broad a mix of customers will struggle to profitably realise the value in many of its individual transactions.  A well-matched or ‘best customer’, on the other hand, will add predictable and significant value to the exchange and deliver the premium that the business needs. Your best customer:  needs what you have to offer, considers it essential;  wants what you are offering, finds it highly desirable; values what you offer, prioritises it above all others; engages fully with all of the elements of your offering, not just its purchase; can pay for it (an ability not confined to affordability). 3. Identify and fix the customer’s ‘key problem’ People buy from other people to fix what they experience as a problem and to enjoy the benefits that result. Potential customers are more likely to be ‘best customers’ when they consider that the product or service offered by a business fixes their key problem. There are two aspects or sides to a customers’ key problems: the practical and the social.  The practical is what the product or service does and the direct, functional benefits it provides, while the social is how the customer relates to others and the world through their choice of that product or service and can be understood in terms of how it makes them feel.   For example, someone is thirsty and buys bottled water. Any bottled water will do. Another customer is thirsty but is concerned that many bottled water products use irreplaceable natural resources.  They choose a brand of water that is carbon-neutral with recycled packaging. The business with the sustainable brand has found its best customer; the customer has used brand value to meet all their needs and fix their problem. 4. Identify and fix both aspects of the key problem More customers are choosing products and services that fix the practical and social aspects of their problems, so it is important that a business identifies both aspects and determines the role that it will play in fixing them. This role must go deeper than the complementary role of seller to the customer’s buyer, and deeper too than the functional role played by the business in fixing the practical problem. When the product or service offered by a business is largely the same as that offered by its competitors, it is the role that the business plays in resolving the social aspect of its customer’s key problem that adds real value, and greater profitability, to the transaction. For example, a business owner seeks an accountant to prepare monthly accounts to support their management of the business. Any suitably qualified accountant can answer this practical aspect of the business owner’s problem.  However, the owner struggles to make sense of how accounts relate to their business and can feel overwhelmed and helpless.  They will choose an accountant that fixes this personal (social) part of the problem, guiding and advising the owner to help them to understand the numbers and the performance of their business. 5. Provide information required for the buying decision When customers are considering which product or service to choose, they will search for some or all of 10 types of information about how a business solves their key problem: Attraction – ‘What is it about this offer that appeals to me?’ Engagement – ‘What tells me that it is right for me?’ Demonstration – ‘How does this offer work?’ Sample – ‘How can I try it for myself?’ Testimonial – ‘Who else has benefitted from this offer?’ Proposition – ‘How do I take up this offer?’ Delivery – ‘How is this offer provided to me?’ Support – ‘How will you help me make the most of it?’ Recovery – ‘What will you do to help me if something goes wrong?’ Feedback – ‘How will I let you know what I think of your offer?’ Final word When the success of a business depends on the effectiveness of its brand in influencing choice, building brand relationships should not be left to chance.  Branding is a tool available to every business. Every type of business can compete for their best customers with a strong brand that influences choice.  Because a smaller business can play to the singular strengths of its brand relationships with customers to distinguish it from others, it can level the playing field with its own competitive advantage.   Gerard Tannam is founder of Islandbridge, a brand planning and strategic development company

As Artificial Intelligence continues to advance, it’s inevitable that it will have an impact on the accountancy profession. Three Chartered Accountants tell us about their expectations Teresa Gallagher Finance AI Senior Manager EY Ireland   Artificial intelligence (AI) can remove repetitive tasks such as data entry, account reconciliation or report preparation and allow accountants to focus on advisory, analysis and business partnering, along with building broader business knowledge.  Equally, natural language processing can extract data from unstructured text documents and input it into accounting systems, reducing time and increasing accuracy.  Aside from the time savings presented by AI functionality, the profession can leverage the innate knowledge garnered in the past to design and develop programs that reduce risk and drive real-time insight and efficiency.  While AI can process vast amounts of data at a rapid pace, it is not capable of the critical thinking and decision-making that human accountants are trained to do. Accountants who embrace AI will thrive as the human skills required to address bias in data will still be key.  Accountants’ expertise in design and understanding data biases can also be used to serve other departments in the organisation as they seek to embrace AI. Moving forward, accountants will work together with AI, but their core analytical and advisory skills will remain essential in understanding their client’s or stakeholder’s objectives and which data will serve them best. Shuning Li  Director, Audit & Assurance Deloitte  Imagine asking a chatbot a complex accounting question and instantly getting a well-written, well-considered answer – similar to what you would receive from someone with 20 years of experience.  Well, there’s no need to imagine it anymore; it’s possible with ChatGPT.  To put the technology to the test, my colleague and I recently entered a real-life accounting scenario under IFRS 10 to ChatGPT.  It returned a detailed analysis with correct reference to the accounting standard. While the answer wasn’t perfect, it did wow us with its depth of knowledge and how quickly it was delivered.  This prompted us to consider what it means for accounting professionals and how our role will evolve together with the technology.  In this early stage of Generative AI (the underlying technology of ChatGPT), the first step is to understand its potential and consider its limitations.  As Chartered Accountants, we apply our professional judgement to scenarios every day and when assessing the outputs of Generative AI, this is no different.  We have a role to play in co-creating and training an AI model to create the new role of “AI model auditor”. This role will not only audit the algorithm of the model but also the ethics behind the training of the model – it requires an individual to lead the professional consultation. Trust is a critical issue as we leverage these advanced technologies, no matter what the stage of maturity. Furthermore, we must also consider the AI’s independence and ensure the technology is monitored and assessed to provide independent advice.  There is huge potential for Generative AI to enhance the workplace, but it will not replace professional specialists. Instead, it will raise the bar for these specialists.  The role of the specialist will evolve, and deeper knowledge and a better understanding of accounting implications that can constantly challenge and verify the answers generated from the AI model will be crucial.  Although there has been heightened discussion about Generative AI in recent months, we are still in the very early days of its adoption and development. Its potential implications, with the right levels of trust, are significant for the profession.  Keith Stafford  IT Audit Partner KPMG Ireland The proliferation of AI technology, automation and bots touches all aspects of how we use and interact with technology today.  AI is having a disruptive impact across many industries, and it would be naïve to assume that the accounting and auditing industries would be immune to the level of change that AI can offer, but neither should the profession fear it.    A significant opportunity for the profession is the ability to automate repetitive tasks, particularly in respect of data entry and analysis.  AI will provide more opportunity and time to focus on more complex tasks, such as data interpretation, decision making and strategy development.   AI can also be used to efficiently support the audit process through the analysis of large data sets and the identification of patterns, outliers, and anomalies within the Financial Statements’ data, enhancing audit quality.   To take advantage of what AI has to offer, the profession needs to embrace the technology and invest in training programs and the creation of opportunities for accountants to understand and utilise these new AI technologies.     AI will look to automate some of the compliance and technical tasks that accountants currently perform. Accountants will need to shift their skill set to analytical, strategic and soft skills rather than pure technical accounting knowledge.      AI has the potential to transform the accounting profession, and rather than shying away, accountants need to understand how it will change the way they work and what they do.   While job security will remain a concern, it is likely that the role of the accountant will evolve to work alongside AI technologies to create new opportunities and skills.  

The benefits of higher incomes are being cancelled out by Ireland’s spiralling cost of living and housing is the biggest culprit, writes Cormac Lucey Once in a while, you come across information that forces you to fundamentally reconsider a firmly held viewpoint. This happened to me recently. Ireland’s economic history over the last four decades has been one of spectacular growth.  The first stirrings that the recent performance of the Republic’s economy might fall short of spectacular success came in an article written two years ago by Patrick Honohan, titled: ‘Is Ireland really the most prosperous country in Europe?’ Take a look at Gross Domestic Product (GDP) figures and you might think so, but they have long been dismissed as an accurate measure of the output that is actually under the ownership and control of Irish people and entities.   That’s why the Central Statistics Office (CSO) gathered a group of expert economists to compile a more realistic alternative measure of Irish economic output. In late 2016, the CSO unveiled modified Gross National Income (GNI).  Honohan’s article questioned whether we—having lost faith in GDP as an accurate measure of Irish output—should put all our trust in this new GNI measure.  The former governor of the Central Bank of Ireland highlighted the impact Ireland’s extraordinarily high cost levels have in reducing the purchasing power of people with higher incomes.  According to Eurostat, the EU’s statistics agency, cost levels in Ireland were 41.4 percent higher than the EU average at the end of 2021. Most of Ireland’s higher cost level is the result of higher housing costs.  Comparing Irish GNI per capita data to EU GDP per capita data, Honohan showed that Ireland was the eighth richest EU member state in income terms. Using Actual Individual Consumption at Purchasing Power Parities, however, put us in 12th place.  In other words, recent economic growth has seen strong income growth, but an awful lot of this has been eaten up by higher costs, especially higher housing costs.  That paper caused a tremor in my rosy view of Ireland’s economic performance over the last few decades.  That tremor became an earthquake when I considered the more recent assertion by Holly Cairns TD, the new leader of the Social Democrats, that she was “a member of the first ever generation” that would be worse off than their parents.  I examined Actual Individual Consumption levels per head adjusted for inflation to test whether, in real terms, people today are worse off than a generation (or 25 years) ago.  The data contradicts Cairns’ assertion. It shows that, in 2020, peoples’ real consumption levels (including housing) were 87 percent higher than in 1995. Far from being worse off, people today are nearly twice as well off compared to a generation ago.  It was only when I examined Eurostat data, comparing Ireland’s Actual Individual Consumption (AIC) level with that of the EU (27) average, that I got an unpleasant surprise.  Between 1995 and 2007, this rose from 96 percent to 118 percent. Three quarters of a century of economic underperformance by the independent Irish state was triumphantly reversed.  The Celtic Tiger was followed by the crash, however. This saw income levels drop and consumption levels fall even more sharply as Ireland switched into deleveraging mode.  Between 2007 and 2021, real Irish AIC as a percentage of EU levels fell from 118 per cent to just 88 percent. We are further behind than we were in 1995. Our economic development model promotes substantial immigration through the mechanisms of EU membership, substantial foreign direct investment and large refugee numbers.  Between 2012 and 2022, the population of Ireland grew by 10.3 percent while that of the EU 27 grew by just 1.4 percent.  Add in a hopeless Department of Housing and you get a housing crisis that is getting worse, not better. This benefits older property-owning generations but disadvantages younger, non-property owners.  No wonder Holly Cairns and Generation Rent are left so exasperated when Official Ireland celebrates its economic success.    Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland

Two of the most significant changes proposed in FRED 82, the FRC’s second periodic review of FRS 102, concern leasing and revenue. Mike O’Halloran delves into the details Financial Reporting Standard 102 (FRS 102) landed on the scene over 10 years ago to much fanfare.  Its introduction was a sizeable task which involved replacing all previously extant Financial Reporting Standards, Statements of Standard Accounting Practice and Urgent Issues Task Force Abstracts in Ireland and the UK, with the single financial reporting standard we now know as FRS 102.  In tandem, a reduced disclosure framework and framework for micro entities were born. The replacement of the previously extant mismatch of accounting standards with a single framework was a seismic task, but a necessary one.  It enabled users of financial statements to receive high-quality and understandable financial information, which had a consistency with International Financial Reporting Standards (IFRS), whilst being proportionate and cost-effective for entities to apply. Periodic review One of the cornerstones of FRS 102, and other standards maintained by the Financial Reporting Council (FRC), such as FRS 105, is that they are subject to periodic review at least every five years. Periodic reviews allow the FRC to consider what is and isn’t working in the current standard, whether there are any emerging issues that need to be addressed, and whether there are any changes at International Accounting Standard (IAS) level that should be considered for inclusion.  In December 2022, the FRC released Financial Reporting Exposure Draft 82 (FRED 82). FRED 82 sets out the FRC’s proposed changes as part of the second periodic review of the standard, including incremental improvements and clarifications. This article focuses on two key changes proposed in FRED 82 to Leasing and Revenue. FRED 82 and leasing Arguably the most significant change proposed in the periodic review is to lease accounting. The FRC has proposed, in FRS 102 only, a lease accounting regime consistent with IFRS 16 - Leases, which was introduced at International Accounting Standards (IAS) level in 2019.  So, why is a change to the way in which entities account for leases deemed necessary by the FRC?  It is a widely held view that “on-balance sheet” accounting for lessees provides a more faithful representation of leasing transactions and therefore provides more useful information to users of financial statements.  The current requirements for lessees—whereby entities first must distinguish whether a lease is “operating” or “financing”—can result in leases, which are quite similar being accounted for very differently.  This is especially relevant where there is a significant level of judgement used in determining the lease classification.  In addition to this, leases currently classified as operating leases are accounted for in a manner that understates the lessee’s level of indebtedness on the balance sheet, as well as the value of assets an entity has the right to use.  The change is also intended to improve comparability for users of financial statements. This includes comparability between entities that apply IFRS to those that apply FRS 102. However, it also includes comparability between entities that apply FRS 102 while also acquiring assets in different ways—an entity that obtains a bank loan to buy an asset, for example, or leases an asset for a set number of years. Opponents of the change may argue that the proposed leasing changes are not appropriate for smaller entities—or that the increase in assets caused by bringing right-of-use assets into fixed assets may cause a change in the size of some companies, which could have other implications (such as a loss of audit exemption). IFRS 16 has now been in operation at IAS level since 2019 and, after a number of years of implementation, would appear to be operating well.  The FRC has indicated that, based on its communications from stakeholders to date, there is strong support for the accounting rules of IFRS 16 to be introduced into FRS 102, provided that the standard offers simplifications in certain areas to make it appropriate and cost-effective for SMEs to apply. The FRC has responded by including some simplifications within FRED 82. These include: The use of discount rates which should be easier to determine; A reduction in the number of situations in which lease modifications will require a new discount rate; The option to apply IFRS 16 in full (which may benefit entities who report up to a parent preparing in IFRS); The retention of the short lease exemption and low value exemption, with guidance in the standard on how to apply these; and A simplified transition method, using the modified retrospective approach. While big changes are proposed for entities with leases under FRS 102, the FRC has decided not to incorporate these changes into FRS 105. It has noted that there was significant concern that the requirements would be too complicated for micro-entities, and that the costs of implementing the changes would exceed the benefits. FRED 82 and Revenue The periodic review proposes that the current Section 23 - Revenue be rewritten entirely and replaced with a single comprehensive framework based on five steps of revenue recognition.  In addition, it is proposed that the appendix to Section 23 be removed. These measures are intended to align the revenue recognition requirements in FRS 102 and FRS 105 with those of IFRS 15-Revenue from Contracts with Customers (IFRS 15), which has been in effect at IAS level since 2018. In explaining its rationale for proposing this change, the FRC highlighted in its basis for conclusion in FRED 82, that the changes made to IFRS 15 were “developed to provide a single comprehensive framework for revenue recognition and to remove certain inconsistencies and weaknesses in the previous revenue standards that IFRS 15 replaced”.  The FRC also highlighted the fact that IFRS 15 accounting provided more useful information to users of financial statements. The feedback it received from stakeholders was generally supportive of the introduction of such a model, provided this would be done in a proportionate manner, with appropriate simplifications to ensure the requirements are cost-effective to apply. The proposed amendments will ensure that revenue recognition is focused largely on a five-step model. This means that an entity must apply the following five steps when determining how to account for its revenue: Identify the contract(s) with a customer; Identify the promises in the contract; Determine the transaction price; Allocate the transaction price to the promises in the contract; and Recognise revenue when (or as) the entity satisfies a promise. Impact of proposed changes Many entities may assume (and some may correctly assume) that the proposed changes will not have a significant impact on how they currently measure and recognise their revenue.  However, this would be an inappropriate assumption to make.  Entities will have to consider the nature of the contracts they have in place with their customers in line with the five-step model, in order to establish the appropriate accounting treatment. Unlike leasing, it is intended that the proposed changes to revenue be incorporated into FRS 105, making it the most significant change to that standard.  This is to ensure that a consistent revenue accounting framework applies across the board. However, the changes have been adapted to reflect the legal requirements, size and nature of micro-entities. Some additional notable changes This article does not cover all of the proposed changes detailed in FRED 82, but some other proposed changes include: A redrafted Section 2 – Concepts and Pervasive Principles in FRS 102 and FRS 105 to ensure consistency with the IASB’s Conceptual Framework for Financial Reporting; Enhanced going concern disclosures whereby an entity applying FRS 102 must state that it has applied the going concern basis, as well as confirmation that it has considered information about the future in applying the going concern basis; For UK companies only, disclosures which are currently contained in Appendix E of Section 1A (encouraged disclosures) are proposed to be moved to Appendix C (mandatory disclosures); A new Section 2A - Fair Value Measurement, to replace the Appendix to Section 2, reflecting the principles of IFRS 13; A focus, in Section 8 – Notes to the Financial Statements on disclosing “material accounting policy information” rather than “significant accounting policies”. This includes more guidance on when accounting policy information is material; An introduction of the definition of an “Accounting Estimate”; and A removal of the option to newly adopt the measurement and recognition requirements in IAS 39 as currently allowed by Sections 11 and 12 (with a view to its ultimate removal entirely). IFRS for SMEs periodic review It is worth noting that the FRC’s periodic review is ongoing at a time when the International Accounting Standards Board (IASB) is carrying out a similar periodic review of its SME standard—the IFRS for SMEs.  FRS 102 was developed from the IFRS for SMEs and, therefore, a change at this level prompts the FRC to strongly consider whether a similar change is required at FRS 102 level.  There are some notable differences between the approach taken by the FRC and IASB.  The IASB has decided not to introduce IFRS 16 leasing rules to its standard, for example, whereas the FRC has (outlined above).  Also, the IASB has decided to align its standard with the expected credit loss model of IFRS whereas the FRC has decided against this, instead deferring its decision on this to a later date. What’s next? FRS 102 covers a lot of ground when it comes to the type, size and complexity of the entities that use it. Users vary from small entities to large—from credit unions to charities and from pharmacies to Premier League Football clubs.  It is a standard that must cover a lot of bases in order to meet the needs of the users of its financial statements.  The FRC highlighted, during its recent 29 March visit to Chartered Accountants House, the importance of engagement from a wide cohort of members to help ensure that all views are taken into consideration when deciding whether the proposed amendments are appropriate.  With this in mind, accountants are advised to familiarise themselves with the proposed changes and consider how these changes might impact their clients.  Anyone who wishes to issue a response to the FRC on FRED 82 can do so via its website. The comment period remains open until 30 April and the FRC has proposed an effective date of accounting periods beginning on or after 1 January 2025 for the changes. Mike O’Halloran is Technical Manager in the Advocacy and Voice Department of Chartered Accountants Ireland

What will tomorrow bring for the role of the accountant, and what changes are already taking hold today? Accountancy Ireland talks to three young professionals about their experiences and expectations The role of the accountant is evolving and with it the expectations and perceptions of younger generations building careers in the profession. Here, three members of the Institute’s Young Professionals Committee tell us about their hopes, aspirations and experiences so far. Niamh McCarthy Niamh McCarthy is a business partner with Primark, the Irish-owned retail chain. She trained as a Chartered Accountant with Crowe Ireland in Dublin after graduating from UCD in 2014 with a degree in commerce.  “When I was training, I mainly worked in audit, but I also had the opportunity to spend several months in both corporate finance and wealth management,” she says. “I got great experience auditing companies across many sectors such as charities, hotels, pharmaceutical and fashion businesses, which really broadened my horizons.” McCarthy left practice in late 2015 to join Kerry Group where she worked for six years. Her time with the Irish food giant included a two-year stint in North America where she was plant controller at two sites in Seattle and Vancouver. “It was an amazing opportunity that allowed me to realise the long-held dream of living and working abroad,” she says. “Unfortunately my plans changed when COVID-19 hit, like many people. Not only did I decide to move back to Ireland, I felt it was time to chase another dream of mine—working in fashion retail. I applied to Primark and I’m really loving my work here now.” Greater strategic role As McCarthy sees it, accountants are squarely at the forefront of broader commercial strategy and decision-making in business today. “When we look at the role of the accountant in most companies now, we are involved more and more in the commercial side of the business,” says McCarthy. “That is, I think, because our non-finance colleagues have a better understanding of the value we bring to the table. We’re not just seen as the ‘number crunchers’ anymore. “I love it when I’m working on a big project and someone says, ‘we need to make sure finance is included in these discussions’, rather than us having to force ourselves into the conversation or learn things after the fact.” McCarthy also sees much greater emphasis on sustainability and environmental, social, and governance (ESG) factors in finance. “Sustainability has thankfully grown in importance in recent years and this is especially evident in the younger generations of our profession,” she says. “Accountants can play a significant role in helping companies achieve their sustainability goals. We’re no longer just the budget gatekeepers. We are involved in day-to-day decision-making.” This active role in business strategy puts accountants at the forefront of efforts to reach ESG targets. “Our ability to be flexible means we can adapt to changing goals,” says McCarthy.  “This shift in attitudes towards accountants and the finance function, combined with greater process automation, will keep accountants right at the forefront of decision-making in business in the years ahead.” Joseph Grant Joseph Grant is an assistant manager in the Financial Accounting Advisory Services Department at Grant Thornton Grant began his training in 2014, aged 18, with Accounting Technicians Ireland (ATI). “When I was 17 doing my A Levels at High School in Co. Down, I was planning on going to university in England when I noticed a poster at school for the ATI apprenticeship with FPM, a local accountancy practice,” he says. “The timing was fortunate for me as I was a carer for my sick mother and this meant I could pursue a professional qualification without having to relocate. The added benefit was earning a salary and having no student debt, which can be quite substantial in Northern Ireland.” Having gotten a distinction in his year-one ATI exams, he then went straight on to his CAP 1 ACA exams with Chartered Accountants Ireland.  “At the time, I was also pursuing a Diploma in Leadership and Management with a local college, which my training firm kindly paid for,” he says. “During CAP 2, I extended this to complete an award in Strategic Management and Leadership, and I passed my FAE exams in 2018 when I was 22.” As he had exemptions from Part 1 of the Irish Tax Institute exams, Grant went on to earn the Chartered Tax Advisor qualification in 2020 and later completed the second year ATI to gain the full MIATI qualification.   After training in practice, he moved into industry for a while, then back to practice. He joined Grant Thornton in 2021. Strong foundation “My qualifications provided a great foundation for my career and equipped me with the knowledge to tackle any technically complicated challenges that come my way,” he says. “One of the biggest shocks for me was just how vast the work an accountant can do is, from preparing tax returns for a small sole trader to company mergers and advisory work, liquidations and systems implementations. “Anyone who has an interest in business will be able to find a niche they truly enjoy through accountancy.” The stereotype of accounting being a ‘boring profession’, with little interaction, couldn’t be farther from the truth.  “Trainees always have the camaraderie of working with people of a similar age and the training firms and professional bodies make a big effort to reward staff and members with fun events and respite from the hard work we do,” says Grant. “It can be a challenging job but there is a strong ethos of mentorship throughout the profession and this is something I really admire.” For young professionals starting out in accountancy in Ireland, Grant sees the ongoing housing crisis and lack of affordable accommodation as a significant disadvantage. “The housing crisis is definitely a challenge for young professionals who grew up here as well as those coming here from abroad,” he says. “Salaries in parts of the country are rising but, for many, house ownership or affordable rent is still out of reach, especially with the recent jump in inflation. I really hope to see this improve in the coming years.” The pandemic has changed the game in terms of how we work and that is unlikely to change in the future, Grant says. “For me personally, hybrid working has improved my work-life balance. There are times when you just don’t need to be in the office, especially if you’re working autonomously on something.  “At the same time, I do still think that in-person contact and interaction with clients and colleagues is important in a service profession like ours.  “From a trainee perspective, being able to just ask someone for help face-to-face is easier than waiting for their Teams status to change to green.” From a technical standpoint, cryptocurrency and blockchain technologies are increasingly ‘in the spotlight’ for accountants and auditors, Grant says. “Regulation is increasing in this area and I expect this to continue in the years ahead. Our profession will need to respond to this change and work out how to audit and account for it.” As Grant sees it, a culture of true diversity, equity and inclusivity (DE&I) is essential in today’s working world and employers and individuals alike have a responsibility to create and support a working environment that is fair and ethical for everyone.  “It’s more and more important for employees to feel that they are part of a culture that doesn’t just ‘tolerate’ DE&I, but actively strives to support and improve it,” he says.  “Hand in hand with this is the emergence of ESG, sustainability reporting and greater regulations in this area. It’s important that we all continue to learn and understand these changing requirements.” In the nine years he has been working, Grant has witnessed a significant rise in the use of IT and automation in the profession. “Software now can auto-match transactions, pull data from PDF files, translate in real-time and submit returns directly from accounting systems,” he says. “The recent spotlight on Chat GPT also raises questions on how Artificial Intelligence may change the landscape for our jobs and our clients.” “My prediction is that almost all businesses, big and small, will be virtually paperless and systems will continue to integrate with each other so that information can be shared consistently and transparently between accountants, clients and authorities.” Ciara Cuggy Ciara Cuggy works with Grant Thornton as Associate Director – Financial Services Advisory. Her path to accountancy wasn’t straightforward, however, following the completion of her Leaving Cert in 2009.  “I didn’t do as well as I’d hoped in my Leaving Cert—my parents still blame the TV that was always on while I was studying—and I didn’t have the points I needed to study accountancy as I’d hoped to do.” Instead, Cuggy opted to study engineering at DCU. “Two years into it, I knew I still really wanted to study accounting,” she says. “At that point, I was 20 and I had a bit of an age complex. I didn’t want to stay in college full-time for another three or four years.” The choice was simple, says Cuggy; “I decided to work full-time while studying accounting and finance part-time at Griffith College and finally felt I was doing something I loved.” In 2015, Cuggy applied for a secretarial role with Grant Thornton to get her “foot in the door” while she continued to study. “I actually got turned down for the secretarial role due to a lack of qualifications, but I was offered a role in the risk department while I completed my final year in college and had the option to start the training contract straight after I graduated,” she says.  Cuggy has now been with Grant Thornton for eight years, completing her FAE exams in 2019 and qualifying in 2020.  She has, she says, “grown up” with the firm and, as an Associate Director in the Financial Services Advisory Department, specialising in conduct risk, culture, risk management and compliance. “I’ve worked across a number of clients in banking, insurance, asset management, e-money and investment firms. I definitely would say that, without the opportunity my employer gave me and the qualification I have through Chartered Accountants Ireland, I wouldn’t be in the position I am today,” she says. ACA opens doors Cuggy recalls now: “When I decided to leave engineering to pursue accounting, I remember sitting down with my dad, who is also an accountant, and asking him how best to approach my career.  “He told me that he would really recommend the ACA qualification, because it would open so many doors, whether I wanted to travel or work in different industries. He could also see how sought-after Chartered Accountants were in the workplace through his own role,” she says. Cuggy considered a number of training routes initially, including ATI, but, when she was offered the Grant Thornton role with the option to study for the ACA qualification after graduating, she “jumped at it”.  “I remember thinking how great it was to be able to continue studying while getting real-life experience and how supported I felt by the Institute and by my employer,” she says. “The ACA has allowed me to continue to learn, I’ve made some fantastic friends and the experiences I’ve had—with, firstly, the CAI student committees and now with the Young Professionals committee—have been some of my best in my career.” Even in the relatively short time she has so far spent in the profession, Cuggy has seen the role of the accountant evolve to become more consultancy focused. “That’s why it’s so great to see the FAE elective broaden to include this wider range of roles, such as financial services,” she says.  “I think in the future, automation will change the nature of the accountant’s role further, but we always need a human element to what we do.  “A system can provide data and results—and may be able to make a decision based on that—but it won’t have the pragmatic approach humans bring, or the empathy.  “Machines can’t consider how decisions and outcomes will affect a customer’s wellbeing, nor can they take into account the needs of an organisation on a human level.” 

Its acquisition by ETL Global marks an exciting new era in the evolution of Dublin firm new Noone Casey, says co-founder Anthony Casey Just over three decades since it first opened its doors, Noone Casey, the Dublin-based accounting firm, is entering a new era as part of ETL Global, the German-headquartered professional services network. For Anthony Casey, who co-founded the firm in 1992 with joint partner Andrew Noone, the move marks an exciting new chapter in their shared business story.  “We say that we tell the financial stories of local and international businesses who care about their success, whether measured in financial, social or personal terms,” says Casey. “And now, after 30 years of storytelling from Dublin, Noone Casey is following in the footsteps of Joyce, Beckett and even Murdoch in creating a greater international dimension to our business.” Recalling the firm’s early days, Casey adds: “I remember the business environment in Ireland when we started was poor. We were just coming out of the eighties and state supports for early-stage businesses were few and far between. “I think our turnover in year one was about £25,000 between the two of us. We really were bootstrapped, but that was how we had to operate.  “We just built the business as we went, but the key always was that we enjoyed it even back then, and we have continued to enjoy it as the years have gone by.” Noone Casey has also carved out its own successful niche in the media and entertainment sectors, working with well-known artists and personalities, such as Tommy Tiernan, Mark Little and Grammy award winners Rodrigo y Gabriela, alongside clients in technology and professional services. “It was actually through our work in media that we found out about ETL Global,” says Noone.  “We were dealing with MGR Weston Kay in London in relation to our media clients and they suggested that we get in touch with Dr Christian Gorny, CEO of ETL Global, and the senior ETL Global management team.” Casey and Noone saw “immediate value” in a potential new alliance with ETL Global, which provides accounting, taxation and legal services to companies of all sizes, but especially start-ups and SMEs. “Noone Casey is similar in that we have largely specialised in providing Irish start-ups and SMEs with accounting, assurance and corporate finance services—and ETL recognises the role of the accounting practice in providing, not just compliance, but ongoing financial advice and support to SMEs,” says Casey. “The SME sector accounts for 99.8 percent of the total number of enterprises in Ireland and Irish Chartered Accountancy firms are the backbone of this market. We just saw this really compelling opportunity for the ETL skill base in the Irish market.” ETL Global launched in 2015 as the international arm of Essen-based professional services firm ETL, and now has a worldwide network of over 1,000 offices in 50 countries. “Our acquisition is part of ETL Global’s rapid expansion in Europe. It allows them to offer a global service to member firms, including succession planning, international accounting and taxation support for expanding Irish firms,” says Casey. He will now take on a new role as Master Partner for ETL Global in the Irish market while the firm’s day-to-day management will continue to be led by Roseann Heavey. Like both Casey and Noone, Heavey is a Fellow of Chartered Accountants Ireland.  She trained and qualified with the Dublin firm before gaining further experience in Ireland and the UK and then returning to become Noone Casey’s Managing Partner. “My own role with the firm has always been focused on business development and I will now be responsible for identifying firms that are the right fit for ETL Global investment,” Casey says. The ETL Global target is to invest in five firms in the Irish market in 2023, followed by five in 2024, and up to 10 in 2025. “I’m really looking forward to meeting firms around the country as ETL rolls out its expansion plans, because I know from first-hand experience just how problematic succession planning in accounting firms has been in recent years,” he says. ETL typically acquires 51 percent of new member firms, such as Noone Casey. It will also finance the next generation of partners in acquiring the shares of the original partners, and the acquisition of successful sole trader firms by member firms. “What we have done in effect here is dilute our shareholding. This allows for opportunities in the future to step away if and when we want to, with a succession plan in place whereby key staff members can then come forward and acquire our shares from us as time progresses,” says Casey. “When you build a business, the start-up phase is always exciting, then there is the ‘messy middle’ where you’re driving forward, earning money and building the business, and then you suddenly arrive at a stage where you have to ask yourself, ‘how do we exit and retain value?’  “We had been having this conversation in-house for a few years; trying to work out how we could exit the business smoothly without being dependent on new partners coming in and paying us over an extended period of time.  “We didn’t want to follow that model, and the Big Four model where you’re ‘naked in, naked out’—you don’t buy in or get paid off on the way out—wasn’t relevant to us,” says Casey. “At the same time, we were thinking, ‘well, we have created a business that’s profitable—how do we get value out of it?’  “It can be very challenging to identify a party that has the necessary funds available and also respects your independence. ETL Global satisfied both of these criteria for us and that was really the genesis of the deal.”

Fiona Hickey has hit a mid-career milestone as the founder of an award-winning practice. Her career advice to other women? Forge your own path in your own time My career started with a really fantastic experience under a training contract with Deloitte and I got what I considered my first ‘real’ job with Oracle in 2008.  I got stuck in, learned the ropes and got to grips with a new type of office politics. Soon, at age 26, I was forging ahead and happy with my progress.  At that stage, I had no idea that the path I saw laid out before me was not the one I was going to take. Shifting priorities It was around this time that my sister was diagnosed with cancer. It was tough, and made me realise that I shouldn’t waste any precious time.  So, at 29, some years ahead of my college friends and peers—and only a few short years since starting my first real job with Oracle—I had Danny, my son. I’m not sure I would have chosen to start a family at that stage if my sister hadn’t fallen ill.  I had so much ambition and a career plan mapped out, but I had also realised that there are no guarantees in life. Starting our family became the direction my husband and I really wanted to go in.  I started a Diploma in Insolvency when I was on maternity leave and Danny had reached the nine-month milestone. Despite the heavy demands of motherhood, I never stopped wanting to learn.  At around the same time, my brother took the brave step of setting up his own company, and I supported him in those early days, spending evenings doing payroll, VAT and book-keeping for his start-up–all tasks I had never done in audit or industry.  This was learning from the ground up, all while wading through the minefield of Revenue tax and CRO filings.  An unexpected career path When I returned to my role with Oracle after 13 months’ maternity leave, it was with this new experience in practice work and self-employment.  Looking back, I had stumbled onto a new and unexpected career path. I found it hugely fulfilling but it wasn’t always easy.  Throughout my first pregnancy and maternity leave, and my son’s early years, I felt like my career was stagnating while my friends were making progress and building on exciting opportunities.  I wondered if the time I’d taken to start my family would leave my career forever one step behind my peers. On the other hand, I found I had such a different drive after my son was born. I still didn’t mind hard work, but I didn’t want to be committed to working like in the same way I had been before his arrival.  My priorities changed. My outlook was different. I decided that if I had fallen behind my peers because I had prioritised my family, it was worth it overall. Timing isn’t everything It was after I had my daughter Hannah aged 31, that I knew I was ready to take the next step in my career: setting up a practice myself in Ashbourne, Co. Meath—my hometown. At the time, there were no part-time accounting roles for women, including with the Big Four. I needed to create my own position. Entrepreneurship is in my genes. My father had run his own business, also in Ashbourne, and I wanted to be in practice so I could connect with people at a grassroots level. To this day, I care so much about each client, their business, and how best to advise and assist them.  I also have profound gratitude towards each client who has come through the door at FAH Chartered Accountants, allowing me to realise my dream of being self-employed.  There was a time when I thought my career would stagnate because I had decided to start a family young. When I was working hard to build my practice, however, my college peers and friends started taking time out to start their own families.  By the time they were ready to return to their jobs, my own career had kicked off again and my practice was growing.  The time I took for my family was when they built their careers, and the time they took for their families was when I built mine. We were never in competition.  These women are all friends and peers whom I greatly admire, but it just goes to show that there is no such thing as “the right time”. It’s the work and passion you put in, and I was right to start my family when I wanted to.  Career ebbs and flows  Everyone has ebbs and flows in their career journey. Whether you want to take time out for family, personal or health reasons, your career can always be kickstarted again.  I hired my first employee six years ago and my practice has continued to grow since. In 2021, we moved to a bigger bespoke office and we topped the Small Practice category at the 2022 Irish Accountancy Awards as well as being named overall Practice of the Year.  It was a phenomenal achievement for the entire team at FAH Chartered Accountants. On a personal level, however, the practice has become much busier than I had anticipated starting out.  Initially, I expected to work part-time while rearing my family, but my work now is a full-time job, and sometimes more.  The great benefit for me is the flexibility I have, which allows me to plan my week, and each day, around my family’s needs.  Maintaining a work-life balance requires constant effort. There are times when I need to work extra hours in the office, but I can then take extra home time in the days afterwards.  When I am home with my children, I don’t take work calls or answer emails. I remain present and enjoy my time with Danny and Hannah, focusing exclusively on our time together. Do I have to constantly juggle home and work life? Yes. Extra demands in either one can create an imbalance, but with focus and commitment, I can find equilibrium again. Qualifying as a Chartered Accountant can bring many benefits in terms of your career route and flexibility.  As a qualification, it gives you plenty of opportunity to change path and step back, if and when you need to for personal reasons, before restarting your career again. No matter what your priorities may be, my advice is to forge your own path. Remember that everyone’s career will ebb and flow differently. Stay open to new opportunities and never be afraid to pivot to get to where you want to be.  Fiona Hickey is the owner and principal of FAH Chartered Accountants

 As more women become Chartered Accountants, a growing number are leaving mid-career, citing various factors ranging from work-life balance to lack of career progression, writes Liz Riley  In mid-2022, Chartered Accountants Worldwide (CAW) surveyed Chartered Accountants around the globe to gauge how they view the opportunities for women in the profession. What they found about training and early careers is positive. There are no obvious gender-related barriers to entry into the profession. In recent years, Chartered Accountants Ireland has had a nearly equal intake of men (52%) and women (48%) into training.  And although the women surveyed by CAW acknowledge that there are few women in senior positions within accountancy, this has not deterred them from entering the profession. As the world of accountancy continues to evolve, however, a growing number of women are making the difficult decision to leave or pivot within the profession mid-career.  For years, accountancy has been viewed as a stable career path. Still, despite the profession focusing more on diversity, equity and inclusion, some women are finding that the barriers in their way are too great for them to want to press on.  Moving on from accountancy Even though just one-in-five mid-career women believe their careers have progressed ahead of their expectations, 81 percent still believe they have much to offer the profession.  The CAW survey shows, however, that the willingness to make career sacrifices is at its highest at the mid-career stage when a person’s children are often younger.  The findings also reveal that mid-career women in Ireland and the UK are more likely to be interested in roles that offer work-life balance (39%), flexibility in working location (21%), and access to additional benefits (33%). However, women at a mid-career stage are also significantly more likely to feel stressed (59%), exhausted (40%), and/or disappointed (25%).  In order to effectively address the issue of hiring and retaining women in their mid-careers, Sinead Donovan, Deputy President of Chartered Accountants Ireland, emphasises the importance of organisational leadership taking proactive measures. “Having been in that position earlier in my career, I recognise the barriers, and I also recognise that putting the head down and living with the status quo, like I did in many ways, isn’t an option,” says Donovan.  “Our profession is in the middle of a recruitment and retention challenge and if partners like me and others across the industry don’t step up to harness this talent pool of ambitious mid-career women, we are missing out.” Mid-career choices and challenges According to Dawn Leane, founder and CEO of Leane Empower, a female-focused coaching, mentoring and training organisation, a number of factors tend to influence women’s mid-career choices and priorities. “They have family or parent caring commitments, or both. Society has moved on a bit, but not enough, and women are still the primary caregivers for family members. So, at that point, there’s a lot of demand on their time.”  Patricia Monahan, Chief Executive of Monaghan County Council, remembers a profession that did not cater to women with families.  “Gender became a noticeable issue when I went to work in a Big Five firm in the ‘90s. That was a high-pressure, high-stakes job with very big clients,” she says. “There were few, if any, women with children working in my division of the firm while many of the senior men had families.  “That was the first time I noticed a difference between men and women in the profession. Because it was a very pressured environment, I just think it wasn’t very family friendly.” But the disparity that continues today isn’t just about family commitments. “Very often, women around the mid-career age come to the perimenopausal stage,” says Leane. “At this point in their careers, women sometimes either leave the workforce if possible or look for a change because they find some symptoms difficult to manage, such as brain fog and poor sleep.  “They ask if they are getting back from their organisations what they put in, and they find that no, they’re not.” Limited career options Laura Maloney, now an executive and wellbeing coach offering a programme called Returnity, aimed at women returning to work post-leave, left the profession in 2016 after finding that her career options were limited after her role changed. “In 2008, my role [in practice] moved sideways to risk management. The following year, there were swathes of redundancies, and I was lucky enough to be in a very secure role, even though it may not have been the right role for me,” she says.  “As the years went on, nobody at the firm was moving, and I felt that my options were limited. When it came to assessing where we were as a family and what came next in my career, my choice was not to return [to accountancy] after my third maternity leave.  “I wanted to be valuable. I wanted to contribute. I wanted to be useful, but I was in this role, and I was not happy. It wasn’t a great fit. How did I know that? Because I never felt like the role or the organisation was getting the best from me.” Career pivots Patricia Monahan qualified as a Chartered Accountant in 1987 and, after working in tax in Dublin, and despite having a positive working experience, decided to relocate to County Monaghan ten years later for family reasons. Monahan continued to take roles that had an accountancy element after relocating until a role for an assistant principal officer became available at Cavan and Monaghan Education and Training Board (ETB).  “All of my roles outside of Dublin were probably atypical for a Chartered Accountant, especially the ones in the public service. When I transferred from the ETB, I became an accountant with the council,” she says. “Shortly after that, I got an opportunity to be a director of services at the council, which, again, took me away from the accountancy role. I had water and environmental services, the fire service, health and safety procurement and roads—all areas that were not in my training.” From there, Monahan decided to dedicate herself to public service, eventually becoming the Interim Chief Executive of Monaghan County Council. “When making career decisions, it didn’t matter whether [my role] was or wasn’t accountancy. It was more about whether it was a progression for me in my career,” she says. “Moving to a director of service role from accounting was definitely a progression. It was a much wider remit of responsibility and a management job.  “Accountancy skills are still very useful and transferable, and the Chartered Accountancy qualification is a good base for any career. I wouldn’t necessarily say I left them behind. I’d say I took them with me, but they were just not the dominant skills I needed.” Tackling the mid-career slump While many women make significant strides in the early stages of their career, they often face various challenges as they progress up the professional ladder.  “Organisations need to be aware of what is standing in the way of women 10 to 20 years after qualification,” says Leane.  “They need to really engage with women to see what they identify as being the blockers to their careers. I’m a big believer in things like mentoring and sponsorship for women in organisations, and this doesn’t have to come from other women. Men are keen to support women in the workplace but might not always know what to do.” “Research shows that, when a woman is working for a male manager, male managers often dilute feedback or don’t give women the feedback they need to develop their career because they fear an emotional response, even if that’s not valid,” explains Leane.  “If you’re giving feedback that you think a woman would like to hear, rather than what they need to hear, that is an enormous barrier in their career.” Moloney thinks there has been an improvement but says that women need honest conversations and feedback, so that they can fully understand their options. “One of the areas that has definitely improved since I left the profession is the willingness to have more honest, open and transparent conversations about things like satisfaction, values and purpose, and achievement. This isn’t a language we would have spoken when I worked in accountancy,” she says. “This is highly dependent on the teams you work in and the managers you work for, and their willingness and how equipped they are to have those kinds of conversations, but they can be the difference between someone leaving the profession or staying.” An important choice According to Leane, there are several steps women can take themselves to ensure their career continues to flourish. “A woman must think about her professional brand and networking – all the skills men got to develop when training,” she says.  “Women often see the benefit in getting the work done – we are taught the benefit of getting the work done – while men have been taught to make themselves known in their professional networks and pick their heads up. “Women might not realise many of these unwritten rules and norms of behaviour exist in the workplace. Many women find they have been very qualified for, say, a certain promotion, but by waiting for the tap on the shoulder or not putting themselves forward, they didn’t play the game.” Moloney says women need to figure out what they want before they can take the next steps in their careers. “It’s all about empowerment and encouragement. So much of the experience I had in my professional career was waiting for validation and affirmation from other areas or other people to tell me that I was doing the right thing at the right time. I should have been able to depend on myself.  “Nobody is advocating for you, but it’s difficult to advocate for yourself when you don’t know what you want. What do you want to do? What do you value? What do you love? What motivates you? You have to answer those questions for yourself before you can communicate them to someone in your organisation who can help you.” Organisations can only do so much, Monahan says, and there comes the point when a woman has to make her own choices. “Ultimately, women have to make choices that will suit their own circumstances, and shouldn’t have to justify those choices.” 

Now more than ever, employers must do all they can to support LBGTQ+ employees, break down career barriers and fight discrimination, writes John McNamara Spoiler alert…there is a call to action for all members in this article. I was shocked to read in a new report launched in February that 2022 was the most violent year for LGBTQ+ people in Europe in a decade.  The report from the International Lesbian, Gay, Bisexual, Trans and Intersex Association (ILGA-Europe), a leading equality organisation, stated that there had not just been a stark rise in violence, but also in the severity of this violence, much of it fuelled by an ongoing rise in hate speech, often related to trans people.  ILGA-Europe noted that the translation of hate speech into real-world, physical violence is occurring “not only in countries where hate speech is rife, but also in countries where it is widely believed that LGBTQ+ people are progressively accepted”. According to the report, a dozen far-right groups targeting people due to their sexual orientation and gender identity, have been identified in Ireland. The outlook in Ireland There may be a sense in Ireland that the LGBTQ+ agenda is complete following the 2015 marriage equality referendum. The reality is different.  Just two weeks after the ILGA Report was released, new research published here by Belong to Youth Services revealed that 87 percent of young LGBTQ+ people had seen or experienced anti-LGBTQ+ hate and harassment on social media in the previous year.  This followed earlier research, carried out in October 2022, which found that 76 percent of LGBTQ+ students feel unsafe at school, 69 percent had heard homophobic remarks from other students, and 58 percent had heard homophobic remarks from school staff. The reality remains that many LGBTQ+ people still choose not to disclose their sexuality at work, while many senior executives have not come out at the office.  Fear of homophobia, judgement, exclusion and being passed over for promotion, are still very real for many LGBTQ+ employees.  The power of positive action So, what can businesses do to break down these career barriers, reduce workplace discrimination and better support LBGTQ+ employees in the workplace? Positively, every one of us can take action within our own businesses, by providing leadership and tangible support.  Numerous studies over many years have demonstrated that companies that truly support diversity and inclusion as part of their culture thrive in areas such as: Increased employee satisfaction, engagement and retention;  Increased productivity and team collaboration; Improved employee mental health; and Improved innovation, customer engagement, financial performance and shareholder value. What you can do Only through tangible and meaningful support can employers reap the benefits outlined above, however. Refreshing a company logo during Pride Month, or making a big social media splash, won’t cut it.  At best, it’s a good first step but businesses need to back up these symbols of solidarity with meaningful support.  Here are five ways we can make a real difference through our actions in the workplace. 1. Lead by example from the top Put aside feeling awkward or the fear of using the wrong words. Instead, those in leadership roles should take the time to learn and understand the relevant issues.  Consider setting up an employee resource group or a focus group or ask HR to work on specific topics. Have a senior leader take the lead on LGBTQ+ employee inclusion. This person may not be LGBTQ+ themselves, but they can still be an ally.  LGBTQ+ employees feel more engaged and invested in a workplace that is a safe place, that is accepting and that allows them to be themselves, and more so if they have a boss who is sympathetic to their own struggles. 2. Develop a supportive LGBTQ+ inclusive policy framework and live it LGBTQ+ inclusion should be a core part of your Equality and Diversity policy. As a first step, make sure these policies explicitly mention how you as an employer support LGBTQ+ people within your organisation.  Test any employee surveys for inclusive language. Make your benefits inclusive for all employees by being conscious of the words you use in communications and favouring gender-neutral terms.  Make clear your support for LGBGT+ inclusion in your recruitment practices and back this up in employee induction programmes. Your workplace policies should establish a strong sense of anti-discrimination so that all employees know what is not tolerated, whether from employees or customers.  Create a communication plan to be sure all employees know what is not tolerated and be clear on the consequences.  3. Support your local LGBTQ+ community Use your position of influence to show your support for your local LGBTQ+ community. Provide information about local events and groups, invite speakers to share their lived experiences, consider sponsoring local resource or sports groups, or encourage staff volunteering at LGBTQ+ events.  These are small but tangible first steps in developing a year-round programme of authentic support and allyship, and not just for Pride month. 4. Support transgender employees All the available research shows that transgender people face a unique set of experiences and challenges, and in an increasingly toxic external environment.  Education and learning can be vital first steps. Request HR support to be clear on what steps to take after an employee comes out as transgender to create a supportive and encouraging environment.  There is a lot of easily available information that can help to support greater understanding of trans issues. Explicit statements of support are crucial.  Back this up with practical support. If you offer health benefits, seek to make them trans-inclusive, develop supportive leave policies, use gender-neutral wording and try to provide the ability to allow changes to company records.  5. Talk, listen, act Above all, speak regularly and openly with all staff and your customers about what LGBTQ+ inclusion looks like in your business, how you should address it and how staff can help support it.  We all know that staff who are better understood will be happier and more productive. We develop plans all the time for most aspects of our business and speaking to an agreed plan on these issues often provides a framework for that ongoing dialogue.  At the same time pro-actively look out for signs of problems or issues - identifying signs that staff are under stress, feel unable to be their true selves or are not happy at work, can help you deal with problems at an early stage before they become more difficult to resolve or manage. About BALANCE Chartered Accountants Ireland needs to lead by example too. BALANCE is the LGBTQ+ Allies network group established in 2022 with three events taking place over the course of the year.  Simply put, BALANCE exists to promote awareness of LGBTQ+ inclusion and highlight issues of relevance. We want to be a profession of choice for new students.  We want to encourage visibility and to ensure students and members can be their authentic selves, both during their studies and at work. We want to build and strengthen relationships with our LGBTQ+ allies who work to ensure that the LGBTQ+ perspective is represented at all tiers. This year will see a partnership event in May with KPMG on issues related to digital world engagement, a regional event, profiling of member experiences and further work to highlight issues of importance.  I encourage you to look at our web pages to find out more about BALANCE, access links to resources you may find helpful and we actively welcome new committee members.  Please do get in touch if you have any questions or suggestions at BALANCE@charteredaccountants.ie or check out charteredaccountants.ie/diversity-and-inclusion/balance-lgbtq-network-group John McNamara is Chair of BALANCE and Executive Director and CFO at AIB life

The banking system is driven by confidence and when that confidence evaporates, the risk of contagion becomes real and dangerous, writes Jim Power One of the abiding memories of the great financial crisis back in 2008 and thereafter was the virtual collapse of the global financial system following the implosion of the US sub-prime mortgage market.  This implosion created a domino effect around the world and its tentacles spread far and wide, devastating the Irish banking system.  The Irish banking system was ripe for devastation after nearly a decade of excessive lending and poor lending standards.  A banking system is driven by confidence, but when that confidence evaporates, the risk of contagion becomes very real and very dangerous. This has played out in recent weeks.  Silicon Valley Bank collapse In the second week of March, Silicon Valley Bank (SVB) became the second largest bank in US history to collapse and the biggest lender to fail since the 2008 crisis after customers rushed to withdraw cash due to fears over its liquidity.  SVB was a bank that loaned money to start-up companies mainly in the technology area and it also provided other financial services to both start-ups and other technology companies.  Another US bank, Signature Bank, was also shut down by the Federal Deposit Insurance Corporation (FDIC). The earlier collapse of crypto-bank Silvergate did not help matters.  The FDIC forced SVB bank to cease operations on 10 March. At the peak of the technology boom, SVB placed $91 billion of its $188 billion in deposits in long-dated securities such as mortgage bonds and Treasury securities.  The value of those bonds had fallen heavily over the past year, however, as the Federal Reserve increased short-term interest rates aggressively.  The value of its assets was also adversely affected by the sharp correction in the global technology sector over the past year.  The bank sought to raise funding of $2.25 billion to cover the losses on its bond portfolio, but without success. This contributed to a run on its deposits and the closure and eventual sale of the bank by the FDIC.  In an FDIC insured bank, up to $250,000 is guaranteed, but the problem for SVB, reflecting the nature of its client base (it had almost 40,000 customers), is that an estimated 93 percent of deposits were not covered as they are over the threshold.  For a normal bank, it is estimated that around 50 per cent of deposits are guaranteed.  This lack of insurance created serious concerns amongst depositors, and we basically witnessed an old-fashioned run on a bank.  Although slightly different, Signature Bank had similar difficulties. In response to the crisis and the risk of contagion, the US authorities responded quickly and aggressively.  First, Treasury Secretary Janet Yellen instructed the FDIC to make whole all depositors with both SVB and Signature Bank out of its Deposit Insurance Fund.  The aim was to shore up confidence among depositors at US banks. Concerns about moral hazard are being ignored for the moment. Second, the Federal Reserve introduced a new lending facility to provide additional funding to banks that run into liquidity problems.  The new Bank Term Lending Program (BTLP) will operate alongside the Federal Reserve’s existing repo facility and will provide loans at a duration of 12 months.  Crucially, the qualifying assets for access to these loans will be valued at par (rather than marked to market).  This should ensure access for institutions sitting on unrealised losses in their held-to-maturity security portfolios. Developments in Europe Recent banking problems have not been confined to the US. In Europe, CSFB has had to be acquired by its larger competitor, UBS.  In the case of CSFB, the vultures have been circling for some time due to a series of scandals in recent years. These have included the largest trading loss in its 167-year history after the implosion of Archegos Capital, and the closure of $10 billion of investment funds linked to a collapsed financial firm, Greensill.  It was revealed that the bank’s auditor, PwC, had identified material weaknesses in its financial reporting controls, which delayed the publication of its annual report.  It is possible to go through each of the troubled banks in turn and conclude that the problems are somewhat unique and are not reflective of the global banking system in general, but the list is getting longer. The heavy concentration of bonds on the SVB balance sheet created the main vulnerability for that institution, but there is once again a more general concern about bank regulation, and particularly the deregulation engineered by Trump in 2018 in response to intense lobbying and a somewhat warped ideological belief system.  His reforms basically reduced the regulatory supervision of smaller banks and indeed the CEO of SVB lobbied heavily for such a relaxation of supervisory standards in the past. The reality is that all banks need to be heavily regulated.  Central banks will continue to respond aggressively to seek to contain any banking problems that might arise in the months ahead.  The likelihood is that further problems will emerge given the move away from the intoxicating effects of artificially low interest rates. A decade of Quantitative Easing was always going to give rise to challenges.  The recent problems for Deutsche Bank clearly illustrate just how nervous the markets are at the moment and how an apparently relatively stable bank can get into difficulty.  Irish banking system For the Irish banking system, the main risks are more likely to be caused by global contagion rather than any inherent balance sheet problems.  In fact, the balance sheets of the Irish banks look relatively solid due to quite stringent capital requirements and other regulatory requirements introduced over the past decade.  We should be thankful for this, but also recognise that the radically changed monetary policy environment has the potential to cause difficulties in areas that might not appear obvious.  The current banking difficulties are likely to increase the cost of funding for banks, pressurise profitability, lead to tighter lending standards, reduced credit availability, and result in more expensive banking services.  Given the fundamentally important role played by banking from an overall economic perspective, such outcomes would undermine activity and damage growth prospects.  Perhaps, it will now take some momentum out of central bank interest rate tightening.  It is not 2008, but it still feels uncomfortable. Banking volatility can now be added to the long list of global economic risks we are facing. 

As Ireland’s housing crisis deepens, Pat Dennigan of Focus Ireland is calling on the Government to take immediate steps to support those at risk  Faced with a 24 percent rise in homelessness and this month’s lifting of the Government ban on no-fault evictions, Pat Dennigan is forecasting a challenging year ahead for Focus Ireland, the homelessness charity he has led as CEO since 2018. Figures published by the Department of Housing put the number of people officially homeless in Ireland in February at 11,742, up 24 percent on the same month last year. “About 12,500 people came to us last year for support and the lifting of the eviction ban means we are about to enter a new phase of homelessness,” says Dennigan. “Nothing has changed since the ban was introduced. We still have a housing crisis in this country and lifting the ban will do nothing to allay fears among landlords as they are selling up in vast numbers because of high taxation and market uncertainty.” As CEO of Focus Ireland, the not-for-profit organisation founded in 1985 by Sister Stanislaus Kennedy, Dennigan leads a team of 400 people providing services nationwide. “We offer about 90 different services and operate a two-tier approach. The first tier is prevention—making people aware of their rights and responsibilities and making sure they have access to the right information and entitlements,” says Dennigan. “The second tier is our sustained exit policy whereby people who are homeless can get a long-term home and keep it.” Focus Ireland also has Focus Housing Association, an Approved Housing Body operating 1,400 long-term homes nationwide. “One of the big attractions of this job for me is the variety of the work I do and the people I meet. The situations and challenges I encounter are completely different from one day to the next,” says Dennigan. One of these challenges is ensuring that the experiences of the people Focus Ireland works with are fairly and accurately reflected in public policy. Fair reflection “We are almost unique among Irish charities in the sense that, from our foundation, we have concentrated on having an evidential response to what we do, based on the data we accumulate. All of our work is underpinned by research and evaluation,” says Dennigan. “Given current circumstances, where we have record numbers of people who are homeless and entering homelessness every month in Ireland—and also the ending of the moratorium on evictions—we face a massive challenge in putting forward constructive and progressive proposals that have a national impact.” To this end, Focus Ireland has partnered with Chartered Accountants Ireland to launch a joint briefing paper calling on the Government to help ease the housing crisis by introducing targeted measures to keep small-scale landlords in the private rented market. While the long-term government objective of increasing the delivery of social, affordable, and cost rental housing is the right course of action, the short-term challenge presented by the large-scale departure of private landlords from the market must also be addressed, Dennigan says. “The vast majority of families who come to us, who have fallen into homelessness or are facing the risk of homelessness, come from the private rented sector,” he says. “They have been served with a notice to quit and, in many cases, this is because their landlord is selling the property they live in and leaving the market.  “Typically, the landlord decides to sell the property, serves the tenant with a notice to quit and then puts the property up for sale. The property is then bought by someone who is going to be the owner-occupier. “On a wider scale, this means that the stock of rental property is shrinking daily and, for the tenant served with the notice to quit, finding somewhere else to live is hugely difficult, particularly if they want to live in the same area with links to schools and the local community.” The Focus Ireland and Chartered Accountants Ireland briefing paper sets out seven fully costed proposals, primarily using tax policy as a lever to encourage small-scale landlords to remain in the residential rental market in the medium- to long-term. “At Focus Ireland, we believe Government targets set out in Housing For All are too low, but until we begin to address the issue of increased housing supply, there will continue to be a shortage of private rented homes to buy,” says Dennigan. “In order to incentivise landlords to stay in the market until we increase our housing stock, we believe short- to medium-term measures are needed over four to six years to help deal with our housing crisis.” Meaningful work Sligo-born Dennigan joined Focus Ireland in 2014, initially as Acting Finance Director, having spent much of his career in the multinational sector in the west of Ireland. “I worked for organisations like Boston Scientific, Nortel Networks and other medical device and tech companies. In the background, I was always motivated by applying the skills those experiences gave me in the service of others and the community,” he says. “My role with Focus Ireland gives me the balance of applying my skills in what is, hopefully, a meaningful way. There is a lot to juggle but I enjoy that and the feeling that I am helping to make a real difference in people’s lives.” Focus Ireland published its current five-year strategy in 2021, laying out plans to support more than 4,000 households out of homelessness and prevent 3,000 households from becoming homeless. The strategy aims to deliver 1,150 new homes in partnership with local authorities and other State agencies through a mix of direct build, buying and leasing. “We have ambitious targets and a significant fundraising requirement each year,” says Dennigan.  “We receive substantial state funding, but it is not close to being enough to meet our overall financial needs. This year, we will have to raise over €14 million to fund our services and that is a big challenge.” A Fellow of Chartered Accountants Ireland, Dennigan says he was delighted to partner with the Institute to publish the joint briefing paper calling for targeted measures to keep small-scale landlords in the private rented market. “The document is relevant and appropriate in the current situation. We also believe there is an amplified voice when Focus Ireland and Chartered Accountants Ireland come together with a similar view and a similar set of proposals,” he says. “I would personally like to thank Chartered Accountants Ireland for helping us to share our message and we look forward to building on this collaboration in the future.”

Minister for Finance Michael McGrath TD talks to Accountancy Ireland about his political career, profession as an accountant and priorities for the months ahead Minister for Finance Michael McGrath can still recall the first time he walked through the doors of Leinster House in 2007 as a publicly elected member of the Dáil. It was, he says, “a humbling experience”. “It still is today—to be elected by your community. I will always be humbled walking into Leinster House as an elected representative of the people. It is an enormous honour,” he says. McGrath’s appointment last December as Minister for Finance was the latest milestone in a political career stretching back to the late nineties.  It was also an apt appointment for McGrath, a Fellow of Chartered Accountants Ireland, who is, he says, determined to “hand over the national finances in good health” when his term draws to a close. The seeds of McGrath’s political interests were sown at a young age, growing up in Passage West on the west bank of Cork Harbour. “During my school days, I enjoyed history as a subject and an interest in current affairs was encouraged at home,” he says.  “The news would always be on in the background and there were always newspapers around we were encouraged to read.  “I remember, because we lived in a rural area where it wasn’t possible to walk or take a bus to school, we would be driven there in the morning and the radio would be on in the car. I can still hear David Hanly interviewing people on Morning Ireland.  “It’s amazing how things stick with you. Listening to those interviews sparked an interest in me about the world around me and about political life, the reach it has and how much it influences pretty much everything that we do.” Start in politics While growing up, McGrath was also heavily involved in community sports and the local development association in Passage West. “I was very fortunate to be brought up in an area where there was a Town Council. They are all unfortunately abolished now, but it was a great starting point for someone like me with an interest in politics,” he says.  “You didn’t need a huge number of votes to get elected. If you had a good network of family and friends in the community, you could succeed.” As his interest in politics was taking root, McGrath was also learning that he had a head for numbers and an interest in business. “I did business studies at second level and decided to study commerce at UCC from 1993 to 1997,” he says. “That actually coincided with the introduction of specialised degrees at the university, such as finance and accounting and Business Information Systems. But I chose the BComm because I hadn’t studied accountancy at second level.” In his third year at university, McGrath began to seriously consider his career options. “I knew I wanted to stay in Cork and that I wanted to secure a professional qualification,” he says. “The obvious next step was to sign up to a training contract and continue with my studies. There wasn’t much accounting in the BComm, so I was only exempt from the old Prof 1 and some of the Prof 2 subjects, but I was very eager. “I finished the Prof 2 exams before I even started my training contract with KPMG the September after leaving college and went straight into Prof 3 in my first year of training, and the FAE the following year.” Value of the profession McGrath chose to qualify as a Chartered Accountant because, he says, he “saw the value of the qualification and the analytical skills it gives you”. “There was a lot of respect for the qualification, then as now. It is a professional passport—a globally recognised qualification that can take you anywhere in the world. I felt that it was the natural next step for me.” Shortly after joining KPMG and aged just 22, McGrath ran for his first Town Council election in Passage West and Monkstown.  “It was the year of my FAEs. While on study leave, I split my time between studying and canvassing for the election. I really enjoyed my four years with KPMG, learned a huge amount and met my future wife Sarah working there. As I always say, we fell in love across an audit file! After qualifying, an opportunity came up that I simply couldn’t refuse. I joined Red FM in Cork as financial controller,” he says. “It was a really exciting start-up radio station in Cork with some dynamic investors and I was there for a few months before it went on air, so I was involved in setting up the commercial relationships and recruiting staff.” McGrath’s work with Red FM involved reporting daily to the station’s chief executive and monthly to the board of directors. “As a young newly qualified accountant, it was a fantastic experience and gave me a great sense of the practical application of the qualification,” he says.  “I was doing monthly accounts, reporting to the board, managing relationships with suppliers, driving commercial revenues through advertising sales, and helping out with managing staff.” From there, McGrath returned to UCC, joining the finance office as head of management information systems. “My qualification as a Chartered Accountant allowed me to stay in Cork at a time when my interest in politics was really developing and I could pursue that in parallel,” he says.  “I managed to do both for a while, but eventually had to make a decision as to where my future lay. I stayed at UCC for a couple of years, but in truth, politics was taking hold at that stage. “I was on the Town Council and ran for Cork County Council in 2004, which was a much bigger deal. It required a much more vigorous campaign covering a larger area and I needed several thousand votes to get elected.  “After I was elected, I realised very quickly that I simply couldn’t do it all. I couldn’t be a County Councillor attending meetings during the day and, at the same time, hold down a senior role at UCC. I took the decision with my now wife, Sarah, to go for politics. “At that stage I knew where I wanted to go, but I wasn’t sure I could get there, and in many ways I was blind to the personal risks of giving up a secure pensionable job at UCC. It was a great place to work, but my passion lay with politics.” Proudest achievements McGrath was elected to Dáil Éireann for the first time in 2007 as Fianna Fáil TD for Cork South Central and went on to serve as Minister for Public Expenditure and Reform from June 2020 to December 2022, when he became Minister for Finance. “Looking back on my time as Minister for Public Expenditure and Reform, what I think I am most proud of is my role in maintaining social cohesion during the COVID-19 pandemic, which was a very dark period for the country,” he says. “We had to make decisions, sometimes with limited information, and make them very quickly. I really take heart now in the way the Irish economy has since rebounded.  “It vindicates the approach we took in introducing the Pandemic Unemployment Payment Scheme and the Wage Subsidy Scheme. “Reaching political agreement on the review of the National Development Plan with a commitment of €165 billion in capital investment through to 2030 is another achievement I am very proud of—and the fact that we managed to negotiate two public sector pay deals at a time of high inflation.” “As a percentage of national income, our annual capital investment is now among the highest in the European Union and this year, over €12 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action.” Now, as Minister for Finance, McGrath’s highest priority is, he says, to manage the public finances safely at a time of global turbulence.  “I am acutely aware of this responsibility, not just to the people we serve now, but to the next generation and those yet to come,” he says. “As Minister for Finance, I am ultimately the guardian of the public purse and ensuring that it is properly managed is my number one priority. “I am determined to play my part in handing over the national finance in good health whenever the term of this government ends or my term in this office finishes.” Current priorities Top of the agenda for McGrath currently is navigating the ongoing economic uncertainty prompted by the war in Ukraine and resulting inflationary pressures worldwide. “We are facing huge international challenges at the moment with the ongoing war, the spiral of inflation it has triggered, and the cost-of-living pressures households and businesses are having to endure,” he says. “Despite all of this, the Irish economy is in relatively good health compared to many other developed countries and we anticipate growth across the economy this year.  “The public finances are in good shape. We recorded an estimated general government surplus last year of over €5 billion, equivalent to two per cent of our national income, and we will be forecasting a larger surplus this year. “We have more people working in Ireland than at any time in our history—close to 2.6 million.  “Safeguarding these successes against the background of international economic uncertainty is a key priority for me—managing public expenditure in a sustainable way and handling the fall-out of signing up to the international OECD BEPS agreement.” Agreed in 2021, the OECD’s Domestic Tax Base Erosion and Profit Shifting (BEPS) deal will bring to an end Ireland’s long standing 12.5 percent corporate tax rate, instead introducing a 15 percent global tax rate for multinationals with annual revenues exceeding €750 million. The lower 12.5 percent rate will be retained for multinationals with annual revenues below this threshold. BEPS will also bring changes to the way in which corporate taxes are applied and collected. “I think BEPS will, in time, come at a cost to Ireland, but that has to be balanced against the policy certainty it affords us in relation to corporate tax as a key lever and, of course, at a European level, efforts are underway to negotiate reforms to the Stability and Growth Pact,” McGrath says. “There are changes to the fiscal rules and Ireland is very much part of this process and seeking to shape the overall outcome.” Indigenous business supports In the months ahead, McGrath says he will be “paying very close attention to the suite of enterprise taxes we have in our code”. “My question is: are we doing enough for SMEs through schemes such as the Key Employee Engagement Programme, the Employment and Investment Incentive Scheme, the Capital Gains Tax environment for entrepreneurs and, of course, the R&D tax credit system?  “I am very conscious that we have an extraordinarily successful Foreign Direct Investment community in Ireland. We must protect and continue to improve this where we can by remaining competitive and investing in our infrastructure and in our talent.  “However, I also think that it will be increasingly important in the future that we have an appropriate balance in how we support our indigenous economy.  “I will be looking very closely at the suite of enterprise tax measures we offer indigenous businesses to see if there is more we can do to incentivise entrepreneurship in Ireland, to reward it and create an environment in which start-ups see Ireland as a location in which they can scale.” Wise investment in public services is another key priority for McGrath. “It is crucial for me to ensure that we have a successful economy, but also that we use the fruits of that success to invest in vital public services,” he says. “We must continue to reform our healthcare system and build up permanent capacity within the system, while also focusing on the green and digital transition, both of which will be central to our economic development over the next 10 to 20 years. We must, of course, also address the huge challenges we face in housing.”