Peter Barry
Question:72 Mr. Barry asked the Minister for Finance if any assessment has been made of the loss of German investment as some German firms are now switching their investment from Ireland to East Germany.
Written Answers. - German Investment in Ireland.
I assume that the Deputy is referring to German real investment in general rather than to some specific case. I have no evidence of a general fall-off of investment into Ireland by German firms due to switching of investment to East Germany. The volume of total fixed investment grew by 10 per cent last year and a similar performance is expected this year. Developments in Eastern Europe have not altered the considerable advantages which Ireland offers to overseas investors, namely broad competitiveness, an educated, versatile and skilled workforce, good and continually improving business infrastructure and an appropriate tax regime. The overall impact of East European developments — taking into account any potential negative impact through relocation of specific investment projects and the additional demand which may be stimulated — can offer potential for increased inward investment to Ireland provided we retain the advantages we now have.