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This article summarises Chartered Accountants Ireland’s response in March 2022 to the Irish Government’s Consultation on the Digital Connectivity Strategy, which is a sub-strategy of the national strategy, Harnessing Digital – The Digital Ireland Framework, launched in February 2022. The Digital Connectivity Strategy is primarily focused on enabling the delivery of the digital infrastructure dimension, setting out the ambition level and the strategic enablers and initiatives needed to ensure the ambition is met. It seeks to position Ireland as a digital leader, driving and enabling digital transformation across the economy and society. The consultation asked for input from interested parties in relation to six specific questions. We responded to three of these questions, engaging with the Institute’s Technology Committee to ensure that responses are in line with the views of our members working in this area. In our introduction, while we recognise Ireland’s ranking as 5th among EU Member States in the Digital Economy and Society Index (DESI), we believe our digital plans need to be even more ambitious to promote ‘Ireland Inc’ and support our ability to attract foreign direct investment (FDI). We also note how the hybrid working model’s success will depend on the availability of reliable broadband and enhanced digital training of the workforce. The pandemic has highlighted issues in rural areas and the digital divides that exist between different groups and sectors. We need to ensure that every citizen living in Ireland has access to the internet via high-speed broadband, which will substantially increase Ireland’s standing on a global stage and bring economic benefits. Addressing the first consultation question in relation to the ambition level of the strategy, we suggest that the level be even higher and note our concern that the National Broadband Plan is already falling behind schedule. We also recognise that a shift to 6G technology will immediately be upon us when we reach the 5G 2030 goals. We suggest that this strategy is reviewed and updated every two years to ensure that it evolves quickly enough to keep pace with change. A whole of Government approach is needed and we suggest creating a separate portal on gov.ie, presenting all sub-strategies in one place, which could be used to communicate progress to stakeholders of all sub-strategies as well as the overall strategy. We welcome the strategy’s recognition of the need to facilitate and promote research and innovation in the sector, which we see as key to achieving the desired outcomes of the strategy. The second consultation we address asks how Ireland can ensure it has a sufficiently skilled workforce and the State’s role in developing this area. We recognise the talent shortage Ireland is experiencing and that a dynamic thought process is needed by the Government to ensure that people with the right skills will be available to implement its digital transformation plans. Salaries for senior cybersecurity jobs in the public sector will need to be reviewed to ensure the right calibre of candidates are attracted. Standard applications in the Critical Skills Occupation List category currently take circa 17 weeks to process; we welcome any progress that can be made in shortening processing times. The State has a leadership role to play in educating our population to support the improvement of digital skills. According to the DESI, although Ireland performs above the EU average in advanced digital skills (for example, for the indicators on ICT graduates and ICT specialists), the basic digital skills of the population are lower than the EU average (53% against 56%). It is important that Ireland continues to focus its efforts on improving the basic digital and software skills to ensure that the workforce is equipped to undertake current and future roles. We recommend that efforts are made at the primary and secondary school level to equip children and young people with the skills needed to do the jobs of the future. We welcome the €50 million funding announced in December 2021 for schools to address the digital divide, funded under the EU’s Recovery and Resilience Facility. We recognise the importance of the Science, Technology, Engineering and Mathematics (STEM) disciplines and encourage a strong focus in terms of attracting students to take on these subjects. Coding and cybersecurity should be built into school curricula. Ongoing, long-term initiatives aimed at upskilling and reskilling in higher education are also required in addition to initiatives like Springboard+, Adult Literacy for Life, and those from Science Foundation Ireland, Enterprise Ireland and Solas. There may also be scope to develop specific training programmes (similar to the Assured Skills Programme in Northern Ireland) in cybersecurity with large technology companies, which would gain from the engagement with potential employees, good publicity and the wider development of relevant skills in the workforce. The final question addressed in our consultation relates to general observations. We identify cybersecurity and data protection as key areas that require adequate resourcing. As trust is especially important for attracting FDI, we need to ensure that we continuously enhance skills in these areas and communicate our progress. We have a particular interest in sustainability and with the net zero goal for 2050 in mind, we believe that the Irish Government will need to do more than just “conduct analysis into positive and negative impacts of digital technological changes on sustainability” as stated in the strategy. All aspects of the strategy will need to be rolled out in a carbon neutral way. In our conclusion, we recognise that the Digital Connectivity Strategy is a key driver for the future of Ireland’s connectivity and competitiveness and essential for hybrid working practices. Inadequate broadband capacity will undermine the ability of regionally located businesses to compete nationally and internationally and will prevent people living in rural areas from working remotely. Improved broadband infrastructure will enable rural-based businesses to create employment in their local communities, as well as supporting the transition to sustainable and circular economies. Education and research are key; labour shortages and ever-evolving technological advances create big challenges but also opportunities for the strategy’s success. The area of cybersecurity is of particular concern, considering the developing sophistication of cyberattacks and the importance of trust for the Irish economy. We welcome all progress in the strategy’s goals and suggest continuous engagement with all parties responsible for implementation to ensure delays are identified and a path back to the plan is developed. The full response is available on our website.

Originally posted on Business Post 06 March 2022. In German the term “merkeln” is a somewhat backhanded compliment to the former German chancellor. It means to put off decisions until conditions improve. The EU response to the atrocious Russian invasion of Ukraine is showing that this attitude has had its day. An extreme development, even within a week of extremes, has been the decisiveness of the EU approach when responding to the Russian invasion. This wasn’t just a triumph over the labyrinthine EU process and bureaucracy. There has been a change in mindset. The EU is not a defence union, but it has decided to act like one. But then the EU wasn’t a healthcare union either until it was forced to become more organised following the onslaught of Covid-19. The EU response was disjointed during the early weeks and months of the pandemic because the mechanisms were not there to coordinate healthcare policy across the member countries. Remember the initial approach to vaccine purchases by the bloc? There has been no such dithering in response to the Ukraine crisis. The latest indication of the newfound appetite for rapid reaction is the use of the Temporary Protection Directive, a process that would give immediate permission for Ukrainians to live and work within the EU and have access to some social welfare benefits. Up to now controlling the freedom of movement of non-EU citizens has been a Brussels totem, unshaken across other humanitarian crises. This directive has existed since 2001, but was never used. If Covid-19 introduced bigger EU governance, one of the permanent outcomes of the Ukraine war is that future EU influence will extend even further. This is not merely a consequence of improved political decision-making at EU level. Nor can it be fully explained by the historical instincts of the EU Nato members to push back against unacceptable behaviour within the former Soviet bloc. The theatre of war has changed. Everyone knows that war is now waged with cyber-attacks and with disinformation spread on social media platforms. Conflict in the second decade of this century goes beyond the screens of computer hackers and onto the screens of the financial traders. An army still marches on its stomach and sanctions make those bellies harder to fill. Announcing sanctions is one thing, but enforcing them is quite another. Governments are reaching deep into their financial services sectors to ensure adherence with the “new normal” approach to Russian commerce. Britain has its own Office of Financial Sanctions Implementation. Ireland does not have a separate such office, but officials have not been slow in setting out the obligations on financial institutions and professionals. Here, the Central Bank is the lead agency for financial sanctions. The application of new financial sanctions inevitably spurs attempts by the people who are targeted to avoid them. At this point the existing anti money-laundering rules kick in. Money-laundering is a criminal activity to conceal the proceeds of crime, and rules already exist to check out unexplained funds or wealth. The financial affairs of politicians and public officials are also subject to scrutiny as they could be bribed or influenced. The decisiveness and rigour of government decisions across Europe will have consequences for a long time. Adding to the existing impetus behind the anti money-laundering regulations, new powers to control and regulate data are on the EU agenda. Similarly, moves to counter climate change at EU level, though slipping on the agenda because of current events, will eventually gain new impetus. They won’t perhaps be driven by the worry of global warming, but by the fear of energy dependence. Though it is the least of our worries just now, businesses operating in the EU will in future be dealing permanently with more scrutiny and regulation over what they deal in and who they deal with. It is difficult for governments to impose tough sanctions and obligations when these have a severe impact on their own citizens. The price increases at the fuel pumps are an early sign that sanctions cut two ways. This is only the start of a phase of higher prices with some goods and services increasingly in short supply. As they deal with Covid restrictions in their capital cities, the Canadian and New Zealand prime ministers are finding that voters dislike being backed into a corner. Our response to the Ukraine disaster has to be different. Whatever the outcome of the illegal invasion, and even if the invasion were to end tomorrow, the European political climate has changed. It is not so much that the centre is holding, but that the centre has resolved to take decisions quickly and ensure they are enforced. The way the EU will conduct its affairs in future has been permanently changed, not by Brexit, nor by the EU Council or Commission or Parliament, but by the evil, though natural, action of the coronavirus and the evil and unnatural action of Vladimir Putin. Dr Brian Keegan is Director of Public Policy at Chartered Accountants Ireland

As the sustainability movement continues to gather speed, businesses across the world are beginning to realise they are going to need to make significant changes to ensure they are the right side of climate policy, as well as doing their part to save the planet. Fingers are being pointed towards the finance professionals to steer the sustainability ship. And there is good reason for this. Finance professionals generally carry a reputation as trusted advisors and as their bread and butter usually involves collecting, measuring, summarising, and reporting all business activities, they are likely to be best placed to analyse the risks and opportunities businesses face. According to recent surveys of chartered accountants, 55% believe that accountants have a great deal of responsibility in relation to sustainability and 60% of businesses surveyed in Northern Ireland have taken steps to address ESG. Sustainability is both a risk and an opportunity. And the risk of taking no action might be greater in the long run, as stakeholders are increasingly demanding more than just financial reward from businesses. According to Bloomberg, approximately $120 billion flowed into ESG-focused exchange-traded funds in 2021, signalling that investors are betting on growth for businesses with the best credentials in this area. But it’s not just the stakeholders that are supporting this movement. It is now high on the agenda for investors, employees and professionals alike. Furthermore, there are moves to introduce global standards for reporting on sustainability matters and finance professionals will need to ensure business disclosures are meeting their requirements not just for regulatory requirements but also for procurement as suppliers increasingly look to the ESG credentials of supply chain partners. Unlike the rest of the UK, Northern Ireland has yet to legislate its carbon reduction targets but there are two Climate Bills currently going through the Assembly. When legally binding targets are in place, significant changes across businesses will be needed to achieve these targets. To tackle the problem, the first step each business will need to make is to take stock and measure their own environmental impact. A recent Harvard Business Review discussed how finance professionals are starting to find themselves in a hybrid position between finance and sustainability, doing boundary work and bridging the gap by teaching themselves about sustainability. Chief Sustainability Officers are not yet common, but even in businesses where this position exists, they usually serve the purpose of being an expert on sustainability issues themselves, rather than having the skills required to measure and report the businesses actual environmental impact. This means that while they may help set the goalposts, the measuring itself will likely fall to the finance professionals. The Economist refers to 2021 as “the year when climate and sustainability entered the mainstream”. This year, the focus will shift to the implementation of the changes called for last year, meaning that businesses will need to examine their strategic plans and start to act. The CFO will be central in this and will need to analyse the cost and return of proposed ESG investments. There will be rewards for outflows as increasing resilience to sustainability risks is expected to result in increased investor confidence and brand reputation. Greater efficiency will lead to financial savings and good publicity is anticipated for the businesses who embrace this area. There is a growing sentiment that businesses that don’t act on this issue will be left behind, generating the wrong kind of publicity as a result and potentially losing future investments. From this perspective, it is self-serving for businesses to start implementing carbon reduction measures now, reaping the benefits by being ahead of the curve and gaining competitive advantage over those who don’t respond quickly enough. Your CFO might just be the person to talk to. Zara Duffy Head of Chartered Accountants Northern Ireland. First published in The Irish News on 8 February 2022.