Speaking at the launch of the Irish Stock Exchange's report "Strategic Development Options for Ireland's Capital Markets in a Comparative Context", Shelbourne Hotel, 9 December, 1999 at 9.00am, the Minister for Finance, Mr Charlie McCreevy, TD, said:

'We have certainly come a long way since the Dublin Stock Exchange began operations in September 1799. I might mention that 1799 also saw legislation providing 'for the improving and repairing the road leading from Newcastle in the County of Limerick to the City of Limerick and from thence to Charleville in the County of Cork'. This legislation also provided for the 'erecting of turnpikes thereon' for the collection of tolls. Two centuries later there must be a message for us in this!

1999 has been an interesting year for the Irish Stock Exchange. It began with the introduction of the Euro and, I am glad to note, the ISE embraced the Euro wholeheartedly - with all trading now being carried out in Euros.

A key benefit of the single currency has, of course, been the arrival of low, German-style interest rates to the domestic market. This will help to improve the competitiveness of Irish businesses.

Still on a positive note, a number of new companies have listed on the ISE this year, the most prominent of which was, of course, Eircom, and which brought some 500,000 investors to the stock market.

These are not just exciting times for the ISE, but also very challenging times. Irish listed companies are losing some of their traditional investors as Irish fund managers have rebalanced their portfolios in favour of other eurozone companies. The traditional stock exchanges are also coming under heightened international competition, especially from some of their counterparts in the eurozone and from new and nimbler electronic rivals. In short, the ISE and its counterparts are facing a period of huge change.

All of this only serves to underline the critical importance of the Bacon strategic review of developments in the Irish capital markets which we are launching here today. It is of prime concern to the Government to ensure that there is an efficient capital market in operation to supply the needs of Irish enterprise. It is, of course, people and not governments, that create successful businesses, but we can help to create the environment in which people want to start-up, or extend or even dispose of, enterprises.

The stock exchange is a vital cog in the complex, inter-linked machinery of capital provision. Even if the initial capital injection is provided by venture capital, the follow-on IPO can help to realise the value of that investment. The stock exchange also helps to meet the need for capital injections to underpin expansions or acquisitions. The Stock Exchange has served an important economic role down through the centuries, generating capital for industry and helping to meet the funding needs of Governments. The Government is fully aware of the competitive threats facing the Stock Exchange and the possible adverse implications for economic development if a vibrant capital market is not sustained locally.

This Report will prove a valuable basis for consideration of the future of Ireland's capital markets. It brings together information on a variety of issues which require consideration by everyone concerned.

To conclude, the future of the Irish Stock Exchange rests in the hands of the financial industry in Ireland. I hope that it will provide the support and commitment that the Exchange needs in the context of the realities in the market place.'