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The United States and United Kingdom are Ireland’s chief trading partners. Other major partners include the other countries of the EU (notably Germany, France, and Belgium), China, and Switzerland. A wide range of manufactured products are exported, including electrical machinery and apparatus, processed foods, chemical products, clothing and textiles, and beverages. Ireland is among the world’s leading exporters of computer software. The principal imports include machinery and transport equipment, chemicals, petroleum and petroleum products, food products, and textiles.
Services
Tourism plays a very important role in the Irish economy. Its value has increased considerably since the 1950s, when the Irish Tourist Board (Bord Fáilte Éireann) was established and began encouraging new hotel construction, the development of resort areas, the extension of sporting facilities, and an increase of tourist amenities. The organization’s successor, Fáilte Ireland, also developed joint ventures with the Northern Ireland Tourist Board. The vast majority of foreign tourists come from the United Kingdom, the United States, and elsewhere in Europe, but groups from the Middle East and China are increasingly seen at the major tourist attractions around the country.
Labour and taxation
Almost all Irish trade unions are affiliated with the Irish Congress of Trade Unions (ICTU). The level of unionization in Ireland is fairly high, encompassing roughly one-third of the total workforce. There are also several employers’ unions (industrial organizations), organized on both a craft and a regional basis. The employers’ central negotiating organization is the Irish Business and Employers Confederation. Wages and employment conditions are normally subject to free collective bargaining, though industrial disputes may be referred to the Labour Relations Commission (created in 1990) or to the Labour Court (set up in 1946). In the late 1980s, when the economy faced serious problems, the government, employers, and unions agreed on a recovery program. Similar partnerships were adopted in the 1990s and have become a feature of the country’s economic and social management. The social compact between unions and government survived the crash of the Irish economy in 2008 via a negotiation known as the Croke Park Agreement, which largely saved union jobs in favour of agreed-to wage and benefit cuts. Public-sector unions in Ireland are powerful, but, because of the social compact with the government, major public demonstrations and work stoppages were avoided even in the face of increasing austerity measures.
Compared with the rest of the industrialized world, Ireland has relatively low rates of corporate and individual income taxes. In contrast, the country’s value-added (consumption) tax (VAT) is fairly high and is charged on most goods and services.
Transportation and telecommunications
Roads and railways
As a result of its scattered rural population, Ireland has a large road system. Most local roads are well-surfaced, and continuous progress has been made toward bringing the arterial roads up to the best modern standards. Ireland has benefited from funds received from the EU to improve and develop its transportation infrastructure. Still, the overall growth of large urban areas such as Dublin has outpaced much of the road infrastructure, which was planned before much of the economic expansion of the 1990s and early 2000s. Commuting by car and public parking in Ireland’s large cities have become increasingly problematic.
The Irish Transport System (Córas Iompair Éireann) has financial control over three autonomous operating companies—Irish Rail (Iarnród Éireann), Dublin Bus (Bus Átha Cliath), and Irish Bus (Bus Éireann). An electrified commuter rail system, the Dublin Area Rapid Transport, opened in Dublin in 1984. There are rail services between the principal cities and towns (including a link with Northern Ireland Railways via Belfast), but many branchlines have become uneconomic and have been replaced by road services for passengers and goods. Dublin also has introduced Luas, a light-rail tram system that serves vital parts of the city centre.
Waterborne traffic
There is no longer any significant commercial traffic on Irish canals. The two major canals in the country—the Royal Canal, which joins the River Shannon with the Irish Sea via Mullingar and Dublin, and the Grand Canal, which also runs from the Shannon to the Irish Sea but with a branch to the River Barrow—are maintained for use by pleasure craft. The successful restoration in the 1990s of the Shannon-Erne waterway in the northwest led to the redevelopment of other waterways in the republic and in Northern Ireland.
Smaller ports are important to the local business communities, but most of the country’s seaborne trade tends to be conducted through the principal east- and south-coast ports, particularly Dublin, Waterford, and Cork. The ports in Limerick and Galway serve western Ireland. Dún Laoghaire, Dublin, Rosslare, and Cork are served by modern cross-channel passenger, motor-vehicle, and freight services to Britain, and there also are some ferry services to the Continent. The trend toward larger vessels and the shipment of goods in containers has adversely affected the smaller Irish ports as well as the smaller privately owned shipping companies. Only a fraction of the country’s foreign trade is carried by the small Irish merchant fleet.
Air facilities
International airports are located at Dublin, Shannon, and Cork, and there are several regional airports. Dublin Airport Authority, a public limited-liability company, has responsibility for the operation, management, and development of the three major international airports. Shannon was the world’s first duty-free airport; a state-sponsored company offers substantial tax breaks and other advantages to manufacturing and warehousing concerns proposing to establish plants within the entire Shannon (midwestern) region. Aer Lingus was founded as the national airline in 1936 and was privatized in the 21st century. Ireland also has seen growth in private air travel, most notably that of Ryanair, which began operation in 1985 and has served as a model for lower-fare European air travel.
Telecommunications
Until the deregulation of the telecommunications sector in Ireland in 1998, the market was dominated by the state-owned Telecom Éireann (now Éircom), which subsequently formed Telecom Ireland, a subsidiary that focused its efforts on attracting foreign investment. Since deregulation, major telecommunications companies such as Norway’s Telenor, British Telecom, and AT&T have operated extensively throughout Ireland. In 1997 the Irish government established the Office of the Director of Telecommunications Regulation, which was succeeded in 2002 by the Commission for Communications Regulation. It is responsible for ensuring that the liberalized telecommunications sector works in accordance with EU and Irish law. Internet use grew rapidly during the late 1990s. Whereas in 1997 less than 5 percent of the population had Internet access, less than five years later the number had grown to about one-third of the total population. Ireland was slow in getting high-speed Internet to locations around the country, but it now has achieved standards generally accepted for wireless access in Europe.
Government and society
Constitutional framework
The Irish republic is a parliamentary democracy. Its constitution was promulgated in 1937 and can be amended through a referendum. The country’s head of state, the president (uachtarán), is elected directly by the public for a term of seven years and is eligible for reelection for a second term. The president normally acts on the advice of the government but also consults an advisory Council of State in the exercise of certain functions. The president signs and promulgates bills passed by the Oireachtas (Parliament) and, when so advised by the prime minister (taoiseach), summons and dissolves the Oireachtas. The president may, however, refuse to dissolve the Oireachtas on the advice of a prime minister who has ceased to command a majority in the Dáil Éireann (House of Representatives). The president is the guardian of the constitution and may, in certain circumstances, submit a bill passed by the Oireachtas to the people in a referendum or refer it to the Supreme Court to decide on its constitutionality.
There are two houses of the Oireachtas—the Dáil and the Seanad Éireann (Senate). Chief legislative power is centred in the 158-member Dáil. The Seanad may delay bills passed by the Dáil, or it may suggest changes in them, but it cannot indefinitely block their passage into law.
Executive power is vested in the prime minister, who heads the cabinet and presides over its meetings. The prime minister, the deputy prime minister (tánaiste), and the minister for finance must be members of the Dáil. The other government ministers must be members of either house, but no more than two may be senators.
Local government
The local government system comprises five county borough corporations, five borough corporations in the major cities, and 29 county councils, as well as numerous urban district councils and boards of town commissioners. Each of these is elected at regular intervals by universal adult suffrage. Of the 29 county councils, only 24 represent whole counties. For administrative purposes, the traditional County Tipperary is divided into a North Riding and a South Riding, each having a county council, and Dublin also is divided, among three county councils (Dún Laoghaire–Rathdown, Fingal, and South Dublin). County councils and county borough corporations are responsible for physical planning, roads, sewerage and water supplies, housing, public libraries, fire services, and courthouses. Local government authorities in the republic have no functions in relation to police or education.
Important policy decisions (e.g., on local taxes, borrowing, and the making of bylaws) are made by the elected councils. Administration, on the other hand, is the responsibility of the county (or city) manager, who usually consults with members of the council before discharging important executive functions. There is a city manager for each county borough council, and for each county council there is a county manager, who also acts as manager for the lesser local authorities within the county. Noncounty boroughs, urban districts, and towns have more limited duties, and, in regard to functions outside their scope, they form part of the administrative counties in which they are situated. The local government system is supervised by the national Department of the Environment.
Justice
Irish law is based on common law as modified by subsequent legislation and by the constitution. Judges are appointed by the president and normally serve for life or until retirement. They may be removed from office only in the case of incapacity or “stated misbehaviour” and then only by resolution of both houses of the Oireachtas.
There are district courts and circuit courts as well as a High Court and a Supreme Court that acts as the court of final appeal. The Supreme Court consists of the chief justice and seven other judges. The circuit courts have jurisdiction to try all serious offenses except murder, treason, and piracy. Criminal trials, which take place before a jury, can be held in a circuit court or in the central criminal court (a division of the High Court). A special criminal court was established in 1972 with jurisdiction over cases of terrorism.
Political process
All citizens 18 years of age or older are eligible to vote. Members of both the Seanad and the Dáil are chosen at least once every five years. The members of the Dáil are elected in three- to five-member constituencies by single transferable vote, a form of proportional representation. Of the 60 members of the Seanad, 11 are appointed by the prime minister, 6 are elected by the Irish universities, and 43 are elected to represent various economic, vocational, and cultural interests. Women have made significant political gains. Although during the 1990s women won only about one-eighth of the seats in the Dáil and constituted about one-fifth of the Seanad, the country twice elected female presidents, Mary Robinson in 1990 and Mary McAleese in 1997. However, with the proportion of women in the Oireachtas remaining at roughly the same levels in the early 21st century, there were some calls for the introduction of quotas for female representation.
The major political parties are Fianna Fáil, Fine Gael, the Labour Party, and Sinn Féin (the last of which is mostly associated with Northern Ireland politics but has made entrees into Irish electoral politics, including seeing its leader, Gerry Adams, elected to the Dáil in 2011). Independents also have a significant presence in the Dáil. Fianna Fáil, a republican party, was founded by Eamon de Valera, who opposed the Anglo-Irish Treaty of 1921. The party boycotted the Dáil until 1927 but won the general election of 1932, when de Valera became prime minister, a position he held, with two intermissions, until 1959, when he was elected president. Fine Gael is the party of the Irish nationalists Arthur Griffith, Michael Collins, and William Thomas Cosgrave, who supported the treaty of 1921 and founded the Irish Free State. Cumann na nGaedheal, forerunner of Fine Gael, held power from 1922 to 1932. After World War II, government leadership tended to shift between Fine Gael–Labour Party coalitions and Fianna Fáil. Fianna Fáil formed several independent (i.e., noncoalition) governments until the late 1980s, when it entered into an alliance with the Progressive Democrats. Later governing coalitions were led by both parties. During the 1990s all major parties accepted the position within the United Kingdom of Northern Ireland. The Irish constitution was altered to acknowledge this fact in 1999, when voters overwhelmingly endorsed the Good Friday Agreement (Belfast Agreement) of 1998, a peace plan signed by the Irish and British governments and nationalist (Roman Catholic) and unionist (Protestant) political parties in Northern Ireland.
