Martin Shanahan Explained

Martin Shanahan (born 1973) is a former Irish public servant, CEO of inward investment agency IDA Ireland from 2014 to 2022, now a partner at Grant Thornton Ireland.[1] During his 8 years heading the IDA, which encompassed Brexit, the COVID-19 pandemic and a major change to US corporate taxation policy, multinational presence in Ireland grew by a significant percentage, and employment in that sector grew from around 160,000 to over 300,000. The holder of multiple degrees and a professor at University College Dublin, he initially worked in the hospitality trade, including management of hotels.

Early life and education

Shanahan was born in Abbeydorney, County Kerry.[2]

He studied at Cathal Brugha Street DIT, and holds a H.Dip (Higher Diploma) in Hotel and Catering Management, and an M.Sc., from Dublin Institute of Technology,[3] as well as a B.Sc. (Mgmt.) and M.A. (1994) from Trinity College Dublin, and an M.Res (Master of Educational Research) from Lancaster University.[4]

Early career - hospitality

Shanahan's early experience was in the hospitality industry, working in bars and hotels from what he describes as an early age, including with the Sinnott chain, eventually managing hotels.[5]

Public sector

Shanahan moved to the public sector, taking roles including at Fáilte Ireland, the Irish tourism promotion and development authority, and in regional operations and management of CERT (a State tourism training body).[6] [7]

Forfás

He worked from 2005 to 2014 in Forfás, an Irish state-funded policy agency which advised government on enterprise, trade, science, technology, and innovation, with a staff of 90.[8] [9] [10] Shanahan worked in a number of Forfás roles before becoming CEO in 2010.[8] [9] Forfas was dissolved in 2014, as part of the then Government's commitment to reducing the number of Irish State quangos,[11] and its functions were transferred to the Department of Jobs, Enterprise and Innovation, Enterprise Ireland, the Industrial Development Authority and the Health and Safety Authority.[12] [13]

IDA Ireland

Shanahan held the position of CEO of IDA Ireland from 2014 to 2022.[14] [15] The role was described by journalist Colm Kelpie as "part politician, part diplomat, and part salesman".[7] Shanahan highlighted the availability of talent above all, and satisfaction with the quality of the country's third-level education system, as reasons why Ireland has been so popular with multinational companies.[16]

Brexit

The first major event to occur during Shanahan's tenure as IDA CEO was Brexit, and he was quoted as saying Brexit was likely to be a net positive for IDA Ireland in terms of attracting companies (both UK and non-UK) to Ireland as a base for selling into the EU.[17] [18] [19] In June 2017 Shanahan was criticized for filling only one of ten positions that his office had been given to hire people to attract companies to Ireland that were leaving the UK due to Brexit.[20]

In October 2017 and January 2018, Shanahan testified before the Public Accounts Committee that Ireland needed to improve the affordability of its housing and its infrastructure, particularly broadband internet access, to remain competitive in attracting foreign companies; he also said that while companies in the financial industry were considering moving from the UK to Ireland due to Brexit, the loss of access to the UK for companies that depend on it for sales or supplies could harm Irish companies.[21] [22] As of December 2017, several major financial firms based in the UK had chosen to go to Frankfurt, Luxembourg, Brussels, or Paris,[23] and in January 2018 Shanahan reported that no new jobs had been created in Ireland due to Brexit and that he expected to see the outcome of his office's efforts at the end of 2018 or the beginning of 2019.[24] By June 2018 companies opting to go elsewhere had caused Ireland to fall out of the top 10 rankings for European financial firms.[25] [26]

US corporate tax changes

The second major event was the Tax Cuts and Jobs Act of 2017 (or TCJA) which changes the tax structure for U.S. multinationals in Ireland. Shanahan was confident that the impact of the TCJA could be managed, noting Ireland's headline corporate tax rate of 12.5% was competitive against the new headline U.S. corporate tax rate of 21%.[27] [28]

Interviews

In November 2014, Shanahan was interviewed on CNBC's Squawk Box live in the CNBC studio.[29] During the interview, long-standing CNBC presenter Joe Kernen asked unusual questions including:[30] "Do tax breaks lead to better golfers?" "Is Ireland really in the euro?" "Is it not just part of Britain?" and "Is it actually its own island?". The unusual interview received international coverage[31] [32] [33] [34] [35]

During the Irish Same-sex marriage referendum in 2015, Shanahan stated that a 'Yes' vote would be in the State's economic interest and that a 'No' vote would send a negative message to the international business community (Ireland's largest company is Apple).[36] His interview drew praise and criticism with some questioning if he had over-stepped his position, as Shanahan himself is gay.[37] [38]

Editing of Wikipedia articles

In April 2019, there was a controversy relating to the alleged editing of Wikipedia pages by paid editors, following allegations by Web Summit founder Paddy Cosgrave. Various pages were claimed to have been impacted, including those relating to Shanahan, the Irish economy and taxation system, and others (many of these pages had been established or mainly contributed to by a Wikipedia user named Britishfinance}.[39] [40]

Bogus IDA jobs scheme

In 2023, investigative news website The Ditch reported that Shanahan, along with then Taoiseach Enda Kenny and then Junior Minister for Enterprise Damien English, announced the creation of 50 jobs in 2014 linked to the now defunct Succeed in Ireland scheme. Not a single one of the 50 jobs was ever created.[41]

Departure

In July 2022, Shanahan announced that he would be leaving his role at the IDA, and moving to the private sector. His contract contained no limitations on such a move but he voluntarily agreed to undertake a period of "gardening leave" between jobs, set by the board of the IDA at 3 months, followed by a further period of leave before starting his new job. He departed the IDA in October 2022.[42] [43]

Overall achievements

During Shanahan's time as head of IDA Ireland, the number of multinational companies with operations in Ireland grew from 1098 to 1691, and employment by multinationals in Ireland rose from around 160,000 to in excess of 300,000,[44] more than 275,000 of those in IDA clients.[45]

Professional services

In June 2023, Martin Shanahan was announced as taking up a role as a partner, and head of the "FDI and Industries" function at professional services provider Grant Thornton Ireland.[46]

Academia

As of October 2019, Shanahan was appointed for five years as a Full Professor on an adjunct basis at Ireland's largest university, University College Dublin.[47]

Personal life

As of last report, Shanahan lives in Skerries, in Fingal, north of Dublin, with his partner, Gary.[6] He is a prominent member of the LGBT community and LGBT in business.[48] He was ranked #11 in the Financial Times OUTstanding Lists for LGBT Public Sector executives.[49]

Notes and References

  1. News: Outgoing IDA boss Martin Shanahan to join Grant Thornton as partner . 14 June 2023 . RTE . 2022-10-22.
  2. Web site: Abbeydorney native to step down as head of IDA Ireland . www.radiokerry.ie . 6 July 2022.
  3. Matt Cooper (interviewer), Martin Shanahan (interviewee) . Martin Shanahan Is Magnified . Podcast . 2023-06-15 . 11:23 .
  4. Web site: Trinity College Alumni Interview; Martin Shanahan, CEO IDA Ireland. Trinity College Dublin. 2016.
  5. Matt Cooper (interviewer), Martin Shanahan (interviewee) . Martin Shanahan Is Magnified . Podcast . 2023-06-15 . 08:50 .
  6. Web site: IDA New CEO: Ireland's trusted adviser. Martin Shanahan may, as yet, hardly be a household name but we will be hearing a lot more from this 41-year-old former hotelier in the years to come, following his appointment as chief executive-designate of the IDA.. Irish Times. 5 November 2010.
  7. Web site: IDA's Shanahan: 'We don't have natural resources other than the quality of our people'. Shanahan is part politician, part diplomat, and part salesman.. Irish Independent. 10 March 2016.
  8. Web site: Press release: IDA Ireland Announces Appointment of new CEO, Martin Shanahan. IDA Ireland. 9 June 2014.
  9. Web site: Forfas chief Martin Shanahan to replace O'Leary at IDA. Irish Independent. 10 June 2014.
  10. Web site: Government plan for 20,000 new manufacturing jobs by 2016 – Minister Bruton, Minister Quinn . . 22 April 2013 . merrionstreet.ie . Irish Government News Service . 30 October 2018 . Forfás is Ireland’s policy advisory board for enterprise, trade, science, technology and innovation..
  11. Web site: 'Quango cull' results in just 17 fewer agencies Fine Gael had listed 145 quangos which would be terminated when it got into power. Irish Times. 9 January 2017.
  12. Industrial Development (Forfás Dissolution) Act . English . 2014 .
  13. Web site: Forfás to be abolished. Richard Bruton, the responsible Minister, received Cabinet approval last Tuesday for the move to dissolve the quango, which has a staff of about 90. The aim of the move is to strengthen the department’s capacity to drive job-creation policy.. The Irish Times. 23 December 2013.
  14. Web site: Martin set to take up the mantle. Irish Examiner. 16 June 2014.
  15. Web site: We wish Martin Shanahan - new IDA Ireland chief - well but.... We wish him well but with reservations as both he and the chairman of what is a key public agency, are both insiders in a system in recent decades where ministers hone the enterprise policy-making message for political impact while dissent, at least in public, is as rare as a black swan.. FinFacts. 13 June 2014.
  16. Web site: With developments in the USA and the UK, the threats to Ireland's economy have increased. Shanahan. Martin D.. McGill Summer School. 27 August 2017. 2018-10-05.
  17. Web site: IDA confident of winning Brexit jobs as firms exit UK. Irish Times. 5 July 2017.
  18. Web site: A Brexit "silver lining" will deliver 2,500 new jobs for Ireland over the next three to five years, IDA boss Martin Shanahan has claimed.. Irish Independent. 14 June 2018.
  19. Web site: UK's difficulty is Ireland's FDI opportunity, says Shanahan. Irish Independent. 25 January 2018.
  20. Web site: IDA takes on just one of 10 allowed extra Brexit staff. Irish Independent. The IDA has so far managed to recruit just one of the 10 extra "Brexit" staff for which it received approval from the Government.. 14 June 2017.
  21. Web site: IDA warns of need to do more to maintain competitiveness. Irish Times. Head of State body says action needed on housing, broadband and infrastructure. 5 October 2017.
  22. Web site: Tight property supply constrains Dublin's Brexit appeal: Escalating prices and rents prompt anxiety about ability to draw more business. Financial Times. 31 January 2018.
  23. Web site: Disappointing number of financials plan to come to Dublin post-Brexit. Irish Times. Transfers from London mainly going to Frankfurt, Luxembourg, Brussels and Paris. 28 December 2017.
  24. Web site: Brexit bounce yet to come as Trump tax moves change little, IDA says. Irish Times. 4 January 2018.
  25. Web site: Ireland falls in FDI ranking as Paris gains to London's cost. Irish Independent. Ireland fell out of a top 10 ranking of the most attractive European destinations for foreign direct investment (FDI) last year, slipping to 11th place overall after being overtaken by Finland.. 12 June 2018.
  26. Web site: Frankfurt Is the Big Winner in Battle for Brexit Bankers. Bloomberg News. Frankfurt has emerged as the biggest winner in the fight for thousands of London-based jobs that will have to be relocated to new hubs inside the European Union after Brexit.. 27 March 2018.
  27. News: Despite Trump's ire, Ireland expects to avoid any pain from U.S. tax overhaul. Martin Shanahan, chief executive of IDA Ireland, the government agency tasked with securing foreign investment, said that American companies are being guided by market principles, "trying to acquire talent, trying to build global teams." The GOP tax plan "would leave companies free to use the capital wherever they want it.". Washington Post. 13 December 2017.
  28. Web site: Ireland does not see big investment impact from US tax changes. That may mean that there are some marginal calls where a company decides to stay in the U.S. rather than come to Europe,” IDA Ireland chief executive Martin Shanahan told a news conference. “But does it signal a significant change from an Irish perspective? I don’t believe so. I can tell you, sitting here today, that I expect the next couple of months to be strong in terms of investment.. Reuters. 4 January 2018.
  29. Web site: IDA CEO becomes an 'unlikely viral video star'. Irish Times. 5 November 2014.
  30. Web site: Ireland's IDA boss faces bizarre CNBC interview. You have pounds anyway don’t you still? It is sort of the same, same island isn’t it? It is just too confusing.. Irish Times. 4 November 2014.
  31. https://www.theguardian.com/tv-and-radio/2014/nov/03/squawk-box-ireland-currency-euro-cnbc American TV host surprised to learn Ireland has the euro not the pound
  32. https://www.independent.co.uk/news/business/news/cnbc-presenter-quizzes-ida-ireland-bossdoesnt-realise-ireland-isnt-part-of-the-uk-and-no-longer-uses-9837844.html CNBC presenter quizzes IDA Ireland boss...doesn't realise Ireland isn't part of the UK and no longer uses the pound
  33. https://web.archive.org/web/20141107013903/http://www.telegraph.co.uk/news/newstopics/howaboutthat/11208578/Hilariously-embarrassing-video-of-CNBC-co-anchor-bemused-by-Irelands-use-of-the-euro.html Hilariously embarrassing video of CNBC co-anchor bemused by Ireland's use of the euro
  34. https://www.nytimes.com/2014/11/05/world/europe/irish-agog-that-cnbc-host-joe-kernen-missed-their-exit-from-britain.html?_r=0 Irish Agog That Joe Kernen, CNBC Host, Missed Their Exit From U.K.
  35. https://www.buzzfeed.com/richardhjames/this-american-tv-host-has-absolutely-no-idea-ireland-uses-th This American TV Host Has Absolutely No Idea Ireland Uses The Euro
  36. Web site: Martin Shanahan: 'A Yes vote is good for business'. Irish Times. 1 May 2015.
  37. Web site: Revealed: IDA chief in row over gay marriage call. Irish Independent. Senior executive gobsmacked by Shanahan's email stating a Yes vote is good for business. 5 July 2015.
  38. Web site: IDA boss didn't talk to the government before calling for a Yes vote. Journal.ie. 1 May 2015.
  39. News: IDA defends itself in Wikipedia war of words on tax . www.thetimes.co.uk . 14 April 2019 . 13 December 2019 . Daly . Gavin .
  40. Web site: IDA caught in Wikipedia war of words over tax and Brexit . www.irishtimes.com . 14 April 2019 . 13 December 2019 .
  41. Web site: 29 August 2023. Kenny, Shanahan and English took credit for 90 bogus jobs as part of controversial IDA scheme. The Ditch. 2023-10-05.
  42. News: Martin Shanahan's sudden exit from IDA should raise eyebrows . 2023-06-14 . The Irish Times . en.
  43. Matt Cooper (interviewer), Martin Shanahan (interviewee) . Martin Shanahan Is Magnified . Podcast . 2023-06-15 . 36:05 .
  44. News: Allen . Lorcan . 11 June 2023 . "Ireland has been continually winning records levels of FDI. Is it realistic to think we will continue to outperform every year? I don't think it is." . 18 . The Sunday Business Post.
  45. Web site: Gain . Vish . 2022-07-06 . Martin Shanahan to step down as IDA Ireland CEO . 2023-06-14 . Silicon Republic . en.
  46. News: Allen . Lorcan . 'FDI will remain a key part of Ireland's economic growth story' – Martin Shanahan, Grant Thornton . 14 June 2023 . Sunday Business Post . 2023-06-11.
  47. Web site: IDA's CEO appointed as Adjunct Professor at UCD Smurfit School . 2023-06-14 . UCD Smurfit School of Business.
  48. Web site: Accenture named Ireland's best LGBT workplace. Irish Times. 20 September 2016.
  49. Web site: The OUTstanding lists: LGBT leaders and allies today. Financial Times. 17 October 2017.

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