PAC to consider 2013 accounts of IDA and Enterprise Ireland

11 February 2015

IDA Ireland, which received Exchequer funding of €126 million in 2013, saw a net gain in job creation of just over 7,000 posts. About 167,000 people are currently employed by the IDA’s 1,192 client companies and, between 2007 to 2013, the average cost per job was €12,608.

Meanwhile, Enterprise Ireland (EI) received €279million in funding in 2013, with EI-supported companies currently employing 175,750 people, a net gain of 5,443 during the year.

The following officials will be appearing before the PAC:

IDA Ireland:

• Martin Shanahan – CEO
• Dermot Clohessy – Executive Director
• Mary Buckley – Divisional Manager, Corporate Affairs, Regions and Property
• Regina Gannon – Chief Financial Officer

Enterprise Ireland:

• Julie Sinnamon – CEO
• Kevin Sherry – Divisional Manager, International Sales & Partnering
• Niall O’Donnellan – Divisional Manager, Investment Services and HR
• Tom Hayes – Divisional Manager, Regions and Entrepreneurship

PAC Chairman John McGuinness TD says the meeting will provide an opportunity to scrutinise how two key agencies involved in job creation are spending taxpayers’ money. “With almost half of all IDA jobs in the East of the country, the PAC will wish to question the representatives on regional employment trends. While the overall figures are positive, we look forward to exploring why, for instance, the South East has seen a nine percent drop in jobs since 2009. We will wish to ascertain the strategies in place to attract Foreign Direct Investment (FDI) outside the main cities. Employment trends by sector will also be explored.”

Deputy McGuinness says that the potential risks to Ireland’s strong reputation in attracting FDI will also provide a basis for the discussions. “The PAC will be asking whether competition from other countries, the supply of prime office space and the abolition of the so-called ‘double Irish’ structure pose a threat to FDI investment.”

The 2013 Accounts of Enterprise Ireland will also be assessed. Deputy McGuinness continues: “EI disclosed investment losses of approximately €19m in 2013, the largest of which was a €9.8m loss on the sale of shares held in a publically listed fund investment. The PAC will wish to ascertain the chain of events that led to the disposal, and the reason for the decision to sell these shares at a loss. We will be keen to assess overall success rates of EI-supported start-ups and how this compares to the figures for similar agencies in other countries.”

“The average cost per job sustained during the period 2007 -13 was €12,962, which is almost three times as high as for the period 2000-06. The PAC will explore the reasons for this apparent increase in underlying costs at tomorrow’s meeting. Access to finance will also be raised, and Members may wish to question EI on the likely impact of the Strategic Banking Corporation of Ireland, established in 2014, on SME expansion.”

The meeting takes place tomorrow Thursday 12 February in Committee Room 1, LH 2000 at 10 am. Public proceedings can be viewed online here.

Committee proceedings can also be viewed on the move, through the Houses of the Oireachtas Smartphone App, available for Apple and Android devices.

Ends
For further information please contact:
Paul Hand,
Communications Unit,
Houses of the Oireachtas,
Leinster House,
Dublin 2

P: +3531 618 4484
M: +353 87 694 9926
paul.hand@oireachtas.ie

Committee Membership
Deputies:    
Áine Collins, Fine Gael
Paul J. Connaughton, Fine Gael
Joe Costello, Labour Party
John Deasy, Fine Gael
Robert Dowds, Labour Party
Seán Fleming, Fianna Fáil
Mary Lou McDonald, Sinn Féin
John McGuinness, Fianna Fáil (Chairman)
Gabrielle McFadden, Fine Gael
Derek Nolan, Labour Party
Patrick O’Donovan, Fine Gael
John Perry, Fine Gael
Shane Ross, Independent