Tech layoffs an opportunity for indigenous sector, says MEP Markey

Hosting conference with Commissioner in Dundalk

Fine Gael’s Colm Markey has called for increased supports for indigenous start-ups to ensure Ireland’s tech sector is not exposed to further global risks.

He was responding to the recent wave of layoffs by tech multinationals.

The Midlands-North-West MEP - who will host a conference on the future of tech with EU Commissioner Mairead McGuinness in Dundalk next week - said now is the time to boost the indigenous sector.

Speaking from Brussels he commented, “Finding talent is one of the biggest difficulties facing Irish start-ups and the recent lay-offs by multinationals opens up an opportunity for the indigenous sector however, we must address a range of other challenges. Recent research from both Scale Ireland and IBEC revealed that red tape is putting many businesses off applying for key state schemes. This needs urgent attention if we are to retain and grow employment in the sector.

“I believe a ‘regulatory sandbox’ approach is the first step in overcoming this hurdle, particularly in the fintech space. The ‘regulatory sandbox’ is a controlled innovation space set up by the Central Bank that allows small businesses the opportunity to design and test new products and services. It brings a significant competitive advantage for indigenous businesses who can test their ideas before embarking on a long authorisation process of regulation.

“Regulatory sandboxes are a feature in the UK and other EU countries and this competitive advantage is missing in the Irish fintech sector. The Government and Central Bank of Ireland should now look to introduce a regulatory sandbox to support indigenous Irish companies.

“Of course we need to continue to attract foreign direct investment but equal attention should be given to home grown companies.”

The tech sector will be discussed at ‘A Fintech Future: Building on Ireland’s Potential’ - an event being hosted by the MEP in Dundalk on Friday November 18th.

“EU Commissioner for Financial Services Mairead McGuinness will be a keynote speaker at our conference which will also feature experts from Fintech Ireland, the Central Bank and Enterprise Ireland who will discuss both the challenges and opportunities facing the sector and identify ways to build on the success of the North-East of the country as a fintech hub.

"The events of the last few days will make the conversation even more pressing and I look forward to engaging with our speakers to get their views on the way forward”, Markey concluded.