The multi-billion pound bail out of the Irish banking system should not have a negative impact on business travel between the Republic and the UK, according to industry experts.
After the banks in Ireland warned that they were on the verge of total collapse, the UK last night agreed to lend the Irish government some £7 billion as part of a £77 billion loan from the European Union.
Ireland is one of the UK's key trading partners – we export more to the Emerald Isle than to Brasil, Russia, India and China combined – and a number of British companies and institutions rely on finance and credit from the Irish banking system.
Although public anger and political uncertainty continue to mount – there have been calls from the Irish Green Party for a general election – Jonathan Wall, managing director of travel accountancy firm Elman Wall, was adamant the bailout would be positive for business travel sector.
“The bail out should help the economy as a whole, as the rescue has already happened which keeps Ireland in business and executives travelling to and from it,” he said.
“The amount contributed by the UK is unfortunate, but it is manageable.”
Wall said Germany's role in relation to the weakest areas of the European trading area was of more concern in the long term.
“The real issue is that when Germany stops supporting weaker Eurozone countries it will lead to the collapse of the euro.
Well placed to predict the impact of the bail out is Lisa Whelan, Carlson Wagonlit Travel’s country manager in Ireland.
She said: “The financial situation could have a limited impact on business travel. The corporate tax rate remains [low compared to other EU states], so it is still attractive for overseas companies to base themselves in Ireland.
“The expectation is that the export-focused industries will continue to thrive and even grow which indicates that business travel will still be buoyant from Ireland.”
Also on the Emerald Isle is Dave Walsh, country manager Ireland for travel technology company, Travelport.
He acknowledged that the limping Irish economy, once known as the Celtic Tiger because of its consistenly strong growth, was suffering difficult times, but insisted business and business travel was continuing to soldier on.
"Overall, companies have been managing the effects of the economic decline over the last two-and-a-half years and will continue to do so regardless of a potential bail out – and business travel is still vital to stimulate economic growth," he said.
"Difficult decisions have been made and will continue to be made and it is important that everyone pulls together to look ahead, be positive and steer the country out of stormy waters.”
Less sure was Ian Windsor, managing director of travel management company Hogg Robinson Group (HRG) in the UK.
He said: “Right now it is a matter of ‘wait and see’ the full extent of support from the Eurozone community and others.
“It is very difficult to predict at this early stage the possible impact on business travel.”
Backing the bail out was Norman Gage, director of business travel for agency consortium Advantage Travel Centres.
He admitted he was “struggling to understand” how the UK could afford to lend £7 billion in the middle of a intense government spending cuts, but said: “The Eurozone is like a house of cards. For the time being we have averted [financial collapse] in Greece, Portugal and Italy, and the Spanish are seeing an improvement, so we can’t afford Ireland to capitulate and bring the cards tumbling down."
Since news of the bail out broke last night, the European financial markets, including the FTSE index, have fallen in value.