Batt O'Keeffe
Question:34 Mr. B. O'Keeffe asked the Minister for Enterprise and Employment the international mobile investment located in this country over the last five years; and the potential employment accruing from this investment. [13393/95]
Ceisteanna—Questions. Oral Answers. - International Investment.
Over the last five years IDA Ireland has negotiated a large number of new and expansion projects with overseas mobile investors. They are as follows, and I will list the number of projects approved and the job approvals for these five years. I will round up the figures:
|
Year |
No. of Projects Approved |
No. of Jobs Approved |
|
1990 |
86 |
11,000 |
|
1991 |
64 |
6,800 |
|
1992 |
66 |
7,700 |
|
1993 |
91 |
9,300 |
|
1994 |
93 |
12,900 |
It must be stressed that job approvals have long ceased to be used as a measure of performance, given the divergence between them and the jobs created by particular projects and overall for specific years. This can be seen from the actual number of jobs created for the years in question, as follows:
|
Year |
New Jobs Created* |
|
1990 |
7,300 |
|
1991 |
6,300 |
|
1992 |
6,700 |
|
1993 |
8,000 |
|
1994 |
9,800 |
*(First Time Jobs and Recoveries)
In that regard, new jobs created in any one year are not directly related to projects approved in that year, and grants are not paid for jobs approved but not created.
I thank the Minister for the information. Is the Minister concerned at the competition from Scotland and Northern Ireland? Is he concerned that under the counter deals are being offered to lure these companies to Scotland and latterly, to Northern Ireland?
We are going beyond the bounds of this question as tabled.
Of course the IDA has to be concerned all the time with the competition. The Deputy is right that competition for internationally mobile investment has become more intense but the last number of years have been very good for the IDA which has been very successful last year and this year. We will have to get used to competition from newly industrialised countries in Europe and existing competition such as Scotland and Northern Ireland, but I am confident that the IDA has the capacity to identify the correct growth sectors and build up sufficient residue of skill in Ireland so that it can continue to be a very attractive location for inwardly mobile investment.
Does the Minister share my concern about the lack of international mobile investment in the Cork area over the last five years, given that we have lost the Siemens project and another project to Belfast? A senior executive of that company is reported to have said that they chose Belfast because they did not know where Cork was. Is the Minister satisfied that the IDA is approaching international investment in Cork in an assiduous way?
I am satisfied. I do not have the sort of figures to which the Deputy is referring to hand so I cannot quote the performance in relation to Cork in recent years but I know that the IDA has put considerable effort into developing and attracting companies to the Cork area, with notable success in certain instances. I will get the Deputy additional figures in relation to the IDA's performance in Cork.
Does the Minister propose a new strategy to attract more mobile investment because of the fierce competition in the marketplace from the state agencies in Scotland, Northern Ireland and Wales? When does he propose to put this strategy in place?
I am currently reviewing the approach to enterprise strategy in Ireland and in particular the approach of the industrial agencies to mobile investment. As I pointed out to Deputy O'Keeffe, the IDA is currently enjoying very considerable success. All Deputies will recognise that its performance in the last two years has been exceptional, but it must continue to be alert to trends in the marketplace. I can assure the Deputy that we are currently reviewing those trends and expect the IDA to respond in ways that will ensure that we are well placed to continue to attract large inflows of foreign direct investment.
How can the Minister justify the argument that there is potential investment after the loss of one of the most important industries this island has seen, the Siemens project? Would he agree that industries locating here are the periphery of major multinational industries and that there has been no solid investment in the last two years?
As I outlined to the Deputy in my reply, the increase in net employment growth from IDA companies in the last number of years is from 6,300 in 1991 to 9,800 in 1994 and I believe that in 1995 the IDA will match if not exceed that figure, so there is real growth in this area. It is part of a general good employment growth being enjoyed by the economy at the moment and the IDA deserves credit for that performance.
That concludes questions for today.
My question was next but we had a sort of Cork monopoly there. In fairness, less time should be spent on questions and Members who have been waiting months to have a question answered should be given a chance.
I concur with the Deputy's aspiration. I have been exhorting Deputies to be brief.