asked the Minister for Industry and Commerce if he will undertake a general review of the policy initiated in 1958 of attracting multinational companies and investment through the use of grant-aid schemes with a view of concentrating resources into native Irish public and private sector development.
Written Answers. - Industrial Investment Policy.
31.
The overseas investment programme has been a key aspect of Irish industrial policy since 1958. Overseas companies in Ireland employ 80,000 people and last year spent over £2.8 billion in the Irish economy on wages, materials and services. This is a fivefold increase in real terms on their 1973 expenditure. Over the past five years they have invested approximately £200 million per annum in the country and are creating annually, an average of 5,000 new jobs. The IDA has targeted a 20 per cent increase in this job creation level up to the end of 1990.
The continuing development of our overseas industry base in Ireland represents a key element of the opportunities available to Ireland through the completion of the Internal Market by 1992.
The Government, in the Programme for National Recovery, fully recognise that the country's economic prospects are heavily dependent on the development of our industrial base and in particular our indigenous industry base. Specific policy measures were set out in the programme to achieve this objective.
Earlier this year I announced changes in our industrial support measures which now focus more clearly on developing home based Irish industry, targeting incentives on actual job creation and shifting support from fixed assets to areas of greatest weakness in Irish industry such as management development, marketing and research and development. The State industrial development agencies have made extensive organisational changes to meet these objectives.
The central thrust of the Programme for National Recovery is the creation of new employment. A significant proportion of these jobs are targeted in Irish owned industries. This will result in proportionately more funds being invested in mainstream Irish industry, from young private sector growth companies to established public sector companies, to secure more jobs and value added in the economy.