The Minister for Jobs, Enterprise and Innovation Richard Bruton today unveiled plans to create up to 7,000 new jobs a year from Foreign Direct investment (FDI) while re-stating his commitment to the 12.5pc tax rate.

He said that Ireland supports the global effort to reform the tax regime for multinational corporations and that this must be within a multilaterally negotiated agreement.

The statement comes after Ireland came under the spotlight for so-called tax-inversion schemes where Us companies re-domicile to countries like Ireland in order to avoid the 35pc tax rate levied in the US.

Minister Bruton was speaking as he published his Department's Policy Statement on Foreign Direct Investment in Ireland, looking at the period 2015-2020, agreed recently by Government.

He said he has requested IDA Ireland to prepare a new strategy on multinational investment in Ireland to 2020, following on from their previous strategy which runs to 2014, outlining a series of targets for jobs, investments and regions and how they will be delivered. Development of this strategy, which will draw on the principles set out in today's policy statement, has already commenced and will be spearheaded by incoming CEO Martin Shanahan.

The policy statement published today, prepared with the support of Forfas, finds that competition for mobile multinational investment has increased dramatically in recent years. It finds that many more countries now possess the basic conditions to attract investments - in areas like cost competitiveness, competitive taxation regimes and effective investment promotion agencies.

" The FDI landscape has changed dramatically in recent years. On the positive side, Irish branches of multinationals increasingly play a strategic leadership role within their parent companies. However, international competition has increased dramatically, and many of the tools we relied on previously � cost competitiveness, the high performance of the IDA, competitive corporation tax regime, State support � are increasingly no longer enough to mark Ireland out. Changes will undoubtedly come in the international corporation tax system which will pose challenges as well as opportunities for Ireland and we plan to compete strongly in this area," he added.

He said that one of the key elements of the Government's plan is a commitment to retaining the 12.5pc corporation tax rate, allied to support for multilateral reform of the international tax system.

He described changes proposed to the international tax system as a "challenge" but also as an opportunity for Ireland if they provide the certainty, stability and predictability for potential investors in the years ahead.

He said that Ireland must seek to become renowned internationally for the higher-order abilities of our workforce, in terms of problem-solving, creativity, design-thinking and adaptability. Ireland must be internationally known for developing and nurturing talent at all skill levels, and as an attractive destination for internationally mobile skilled people.

"We cannot be world-leaders in all areas, but Ireland must achieve a record of world-leading research and innovation in key areas, in close cooperation with industry. We must deliver a choice of attractive locations for investment. We must play to the strengths of our different regions, and provide regional locations that can offer sectoral strengths, collaboration with education institutions and Irish companies, excellent infrastructure and quality of life. A vibrant capital city with a smart business and living environment hosting a dynamic start-up community alongside corporate heavyweights will always be a core element of our offering," he said.

"We must effectively identify and pursue opportunities in sectors where Ireland can attract investments and jobs - both adapt quickly and take leadership position in emerging areas and consolidate our strengths in existing areas of strength and; we should implement a more systematic approach to sector development, including the appointment of specific Cluster Development Managers/Teams."

AIB returned to profit in the first half of the year after its bad debts on loans fell sharply, marking a major milestone as it moves towards repaying a state bailout next year.

State-owned AIB made a pretax profit of 437 million euros compared with a 838 million euro loss a year ago.

The bank flagged its return to profitability in a trading update in May, saying it was driven by a significant reduction in impairment charges. Provisions for soured loans fell to 92 million euros from 738 million in the first half of 2013.

The level of bad loans in Ireland - where almost one in five home loans are in arrears - had made a return to profitability elusive for its banks. AIB said the total number of arrears fell by 6 percent in the period.

The bank's proportion of owner-occupiers in arrears for more than 90 days stood at 10.5 percent at the end of June, while 25.7 percent of all buy-to-let mortgage holders were behind on payments.

AIB's core Tier 1 capital ratio, a measure of financial strength, was 16.1 percent at the end of June, and 10.5 percent complying with Basel III rules. Its net interest margin - gauging the profitability of its lending - rose to 1.60 percent.

AIB, which announced a review of its capital structure earlier this year to prepare the bank for sale in 2015, said it expected to remain profitable for 2014 but challenges remained including a still shrinking net loan book. (Reuters)

Irish IT services company Version 1 is to create 100 jobs at its base in Dublin.

It follows an E8m investment in the company by the Government supported BDO Development Capital Fund.

The investment will enable Version 1's further expansion into the UK as well as the creation of up to 100 additional IT consultancy jobs here.

The BDO Development Capital Fund provides development and growth capital for established, mid-sized and profitable companies to assist them to achieve and accelerate their export-led growth plans.

Version 1 was founded in 1996 by Justin Keatinge and is today one of the fastest growing IT services companies in Western Europe. The company has grown organically to become a trusted technology partner to major domestic and international customers across all industry sectors in the UK and Ireland.

The company has doubled both profitability and revenue over the last few years, while at the same time delivering consistent improvement in customer satisfaction and world-class employee engagement.

The Government is in talks to payoff the country's bailout loans from the International Monetary Fund early, the Irish Times reported today.

The government is seeking early repayment for only the IMF loans in its E64 billion bailout because they carry a higher interest rate.

Any move to restructure any loans in the bailout package would require the approval of our EU partners, the newspaper reported.

Ireland's loans from the IMF carry an interest rate of about 5pc and cost the government about E1 billion a year to service so that a early pay-off could save the Exchequer many millions over the term of the loans.

The 5pc rate is more than twice the rate both on the European loans and the 2.28pc yield currently on 10-year Irish government bonds.

Ireland is currently in talks with its European partners but no action is expected before the government announces its 2015 budget in October, the Irish Times said.

Ireland continues to outperform its competitors in attracting Foreign Direct Investment (FDI) but needs to focus on improving competitiveness if we are to get a bigger slice of the action in the future.

That's according to a report launched by Grant Thornton today entitled Foreign Direct Investment in Ireland: Sustaining the Success. It looks at the factors that have contributed to Ireland's success in attracting FDI and highlights the key measures needed to sustain high levels of inward investment and the jobs it brings.

It finds that Ireland's reputation as a good place to invest is based upon a number of factors including quality of our workforce, a pro-business environment and our record in overcoming the economic crisis.

Ease of access to the broader European market was also an outstanding attraction.

Global FDI is on the rise again and, the report says, if Ireland is to attract more investment, it must tackle a number of impediments such as the skills shortage in key sectors, especially technology.

It also find that the cost competitiveness of Ireland has improved but that Ireland continues to be an expensive place to do business when compared to some other EU destinations.

"As costs of doing business are purely location related, it is vital to ensure that Irelands cost competitiveness improves. Policy makers should aim to improve the cost areas that are directly under their controls," it concludes.

It notes that Ireland has a strong intellectual property regime and the country's substantial R and D support, offering greatly contributes to Ireland's FDI attractiveness. "It is important that any significant changes to the Irish IP regime, such as the introduction of branding restrictions, are thoroughly reviewed from a national and a wider international perspective to determine any potential negative impact on the attractiveness of Ireland as a location for FDI," it said.

Brendan Foster, Grant Thornton Partner for Business Consulting and Advisory said: "It is interesting to note from the survey that tax incentives for investors scored lower than other investment decision factors. Our 12.5pc corporate tax rate continues to be a fundamental pillar in Ireland's FDI offering, but the predictability of the rate is as important as the rate itself. By publishing this report we hope to make a positive addition to the policy debate by highlighting to Government where, in the opinion of international investors, more work should be done such as tackling persistent skills shortages, infrastructure deficits and ensuring the protection of intellectual property."

Dublin has the ninth highest percentage of millionaires per population of any European city with nearly one in 40 Dubliners a millionaire, according to a survey.

Dublin (it doesn't define the area covered) is shown to have the thirteenth highest percentage of millionaire residents in the world at 2.4pc in a first-of-kind survey ranking cities by percentage of millionaires by a high net worth database research company, Wealthinsight Ltd.

It says: "a thriving financial services sector, low tax rates and a pleasant lifestyle are all factors likely to attract millionaires to a city, and Dublin can offer all of these."

It said that Monaco comes out top for millionaire density, with almost a third of its 37,000 population classed as millionaires. Zurich and Geneva are second and third by percentage of millionaires, followed by New York and Frankfurt.

SPEAR's magazine, a HNW research magazine, in conjunction with London headquartered HNW wealth consultancy company WealthInsight says: "the cities with the highest percentage of millionaires have been revealed for the first time ever".

"In Dublin, over one in every fifty residents are millionaires or richer (2.4pc or 26,600 individuals), putting the fair capital ahead of affluent global cities such as Paris, Venice, Toronto, Houston and San Francisco in terms of millionaire density. Dublin is thirteenth on the overall global list, with the ninth highest percentage of millionaires of any European city", it says.

"The research also shows that in Monaco you are only ever a stone's throw from a millionaire - with almost a third of the population classed in this financial bracket. Not too far behind are Swiss banking centres Zurich and Geneva in second and third place. Key financial centres New York and Frankfurt come in forth and fifth."

Richard Cree, Editor-in-Chief of leading business and finance publication economia, said: "It's clear from this list that for all the controversy surrounding Dublin's International Financial Services Centre, it has attracted some of the biggest names in global finance to the city and this perhaps explains why Dublin ranks where it does on the index of millionaire cities."

"A thriving financial services sector, low tax rates and a pleasant lifestyle are all factors likely to attract millionaires to a city and Dublin can offer all of these. The city has suffered a dip along with the rest of the country since 2008 and it has to be hoped that some of this wealth can filter through to help grow and build a stronger, more resilient economy," he adds.

WealthInsight Analyst, Oliver Williams, said: "It's unsurprising to see that Monaco is the most likely place where you will bump into a millionaire; the principalities' low tax and Mediterranean waterfront is the ideal habitat for wealthy individuals."

"Dublin, though about thirty times the size of Monaco, is a relatively small capital city, giving it a high density of millionaires. Small cities with a strong financial focus are very attractive surroundings for wealthy individuals. For Dublin itself, an abundance of millionaires could help the city claw back its financial prowess from 2008's collapse."

Confirming an earlier CSO survey showing a rapid rise in home prices, the latest DNG House Price Gauge covering the second quarter of this year shows Dublin prices rising by an average of E220 a day.

That's about E6,600 a month from April to the end of June 2014, with foreign investors now looking to the Irish market for investment, it said.

However the second quarter increase of 5.9pc dropped from a high of 8.9pc in the first 3 months of the year reflecting an increase in the availability of properties which according to the Property Price Register saw a 36.8pc jump*. DNG is now predicting an annual house price increase of 20pc at the end of the year.

The year on year increase of 25.2pc means that most homes still stand 51pc below their peak value in 2006 but houses in certain areas of Dublin have now closed that gap to around 25pc - 30pc. The average house is now 44pc more valuable than it was at the bottom of the market in Q2 2012. Despite the increases, Ireland still lags behind England, Scotland, Wales and Northern Ireland in house transactions/sales per 1,000 according to an analysis by the estate agency.

The average cost of a Dublin home now stands at E349,000, a rise of E6,666 per month since the beginning of April or E71,000 since June 2013.

In addition houses in West Dublin increased at almost twice the rate of houses in the north and the south of the city at 9.6pc versus 4.1pc and 5.6pc respectively. This appetite for starter home was also reflected in the three month 10.9pc price increase in houses in the sub E250k mark or 36.6pc over 12 months. According to DNG as the value of the property rises so the rate of increase during quarter two slows down, with the lowest rate of increase evident in the most expensive sector of the residential market at 3.3pc during the second quarter.

Commenting on the results Keith Lowe, CEO, DNG said "Property prices in Ireland fell too far and too fast and it was inevitable that prices in the greater Dublin area in particular were going to rebound strongly. The fact that property prices in the capital have risen at a more realistic and sustainable level this quarter than that experienced in the first quarter of 2014 is to be welcomed. We would anticipate that house prices in the capital will show further growth in the second half of the year but at more moderate levels."

He also added "The sharp price rises experienced at the entry level price bracket and properties located in west Dublin, in particular, is good to see. These have been slower to recover than other areas and price categories and are now playing catch up with the rest of the market."

Speaking on the overseas investor interest in Ireland Mr. Lowe also said "There is currently very strong interest in Ireland from international funds, many of which have now turned their attention to the residential market and which will also continue to assist market recovery in the coming 12 months."

In the year to June, residential property prices at a national level, increased by 12.5pc but Dublin home prices rose at nearly twice that rate over the same period, latest CSO figures show.

The national figure compares with an increase of 10.6pc in May and an increase of 1.2pc recorded in the twelve months to June 2013.

Residential property prices rose by 2.9pc in the month of June. This compares with an increase of 2.3pc recorded in May and an increase of 1.2pc recorded in June of last year.

In Dublin residential property prices grew by 3.3pc in June and were 23.9pc higher than a year ago. Dublin house prices rose by 3.1pc in the month and were 24.4pc higher compared to a year earlier. Dublin apartment prices were 18.2pc higher when compared with the same month of 2013. However, it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series, the CSO cautioned.

The price of residential properties in the Rest of Ireland (i.e. excluding Dublin) rose by 2.3pc in June compared with an increase of 0.7pc in June of last year. Prices were 3.4pc higher than in June 2013.

House prices in Dublin are 42.7pc lower than at their highest level in early 2007. Apartments in Dublin are 50.5pc lower than they were in February 2007. Residential property prices in Dublin are 44.5pc lower than at their highest level in February 2007. The price of residential properties in the Rest of Ireland is 45.8pc lower than their highest level in September 2007. Overall, the national index is 43.4pc lower than its highest level in 2007.

Confidence among Ireland's business leaders in the future of the economy has almost trebled but the rising cost of doing business and skills shortages in key sectors remain a worry.

That's according to PwC's 2014 CEO Pulse Survey out today, which found that a large majority of Irish CEOs view the increasing tax burden, rising labour costs and the availability of key skills as key threats to this growth.

An overwhelming majority (86pc) of Irish CEOs are positive about the outlook for Ireland's economy, up from 31pc last year. More CEOs are now confident in our economy compared to 2007 and pre-recession times.

Over three-quarters (77pc) are favourable about the future prospects for their own businesses, up from 44pc last year, the survey found.

This positivity is echoed in the anticipated performance of aspects of Irish operations: 77pc expect revenue growth and 69pc expect profit growth, up from 56pc and 53pc respectively on last year.

Almost 9 out of 10 MNC CEOs plan to increase or maintain their investment in Ireland with access to highly skilled people being the most critical factor and over half (58pc) plan to increase the workforce, up from 34pc last year and 36pc in 2008. However, over one in ten (13pc) are still looking at headcount reductions.

According to the survey, much of this growth is fuelled by opportunities in 'existing' markets with nearly two-thirds (60pc) planning expansion in existing domestic or foreign markets. One in ten (10pc) plan to target new geographic markets. Nearly one in five (19pc) are looking to new product or service innovations and 10pc see opportunities through M and As/joint ventures.

Half (49pc) have capital investment plans, up from 43pc last year, it found.

Overall, 58pc of respondents report their businesses to be in better financial health now compared to the period prior to the financial crisis some five years ago. However, nearly a quarter 23pc feel they are in a worse position.

The increasing tax burden is a key challenge for 86pc of CEOs. Other key challenges include rising labour costs (81pc) and the availability of key skills (69pc), and Nearly a third (30pc) say finance is more readily available now compared to a year ago, up from 16pc last year. One in ten reported plans to restructure existing borrowings in the year ahead; a similar proportion (11pc) plan new borrowings while 62pc do not envisage any change to their capital structure.

An overwhelming majority (92pc) of responding MNC CEOs confirmed that their company's investment in Ireland is considered to be a success. Almost 9 out of 10 currently plan to increase or maintain their investment in Ireland. The ability to access highly skilled people is the most critical factor (78pc) for increasing and/or maintaining this investment, according to the survey, up from 31pc last year.

Competitive wage rates (76pc) and improved cost competitiveness (56pc) are also very high on the agenda. The retention of the 12.5pc corporate tax rate is important for over two-thirds (69pc). Having a competitive personal tax regime for foreign employees working in Ireland is twice as important compared to last year.

Two-thirds (66pc) of Ireland's business leaders expect their export volumes to grow in the next 3 - 5 years. However, this represents a drop from 73pc last year. A third (32pc) expect export volumes to grow by more than 10pc. The survey reveals heightened interest in the UK and Western Europe with a third more CEOs targeting these markets compared to last year. There is also greater interest in some emerging markets such as China, Brazil, Japan and Africa.

Speaking at the survey launch, Ronan Murphy, PwC Senior Partner, said: "The survey shows that the pendulum has swung with levels of confidence across many areas of business now higher than 2007 and pre-recessionary times. Substantially more CEOs expect revenue and profit growth and confidence amongst MNC CEOs has also improved. The survey also highlights that the skills challenge persists and competitive wage rates is a key concern for both indigenous and multinational CEOs."

Boxever, an Irish travel industry service provider, today said it has relocated its headquarters to Ashford House in Dublin to accommodate the 44pc increase in new employees since January.

The company, which provides customer intelligence, personalisation, and big data, said that the expansion also includes establishing the company's first international office in Boston in the US, which will be focused on global marketing and account development activities.

"It's clear we have found a real need in the travel industry for a more efficient and effective way to deal with the surge of data airlines and OTAs are getting from multiple customer channels," said Dave O'Flanagan, CEO, Boxever. "This strong interest has resulted in a growing need for skilled resources across all our operations."

In addition to processing millions of guest profiles, Boxever helps airlines and OTAs improve core KPIs associated with converting and retaining customers. Mr O'Flanagan said that the company's customers have realised double-digit uplifts in conversion and retention programs resulting in millions of dollars in additional revenue.

Key hires added or augmented since January include sales, marketing, data science, engineering, and client services.

"I'm delighted with the growth Boxever has seen over the past 24 months," said Mr O'Flanagan. "At our holiday party in 2013 we had 66pc more employees than the previous year. Mid-year 2014 we've grown headcount an additional 44pc, and expect growth to continue through the rest of the year."