Ivor Callely
Question:96 Mr. Callely asked the Minister for Finance the level of foreign investment and positive incentives in place to encourage investment here; and if he will make a statement on the matter. [18380/01]
Written Answers. - Foreign Investment.
Bernard J. Durkan
Question:111 Mr. Durkan asked the Minister for Finance if he is satisfied that the economic climate here remains adequately attractive to both the United States and European investors, having particular regard to the number of corporations which have in recent times relocated; and if he will make a statement on the matter. [19320/01]
Bernard J. Durkan
Question:112 Mr. Durkan asked the Minister for Finance the plans he has to make the economy more competitive from the point of view of outside investment; and if he will make a statement on the matter. [19322/01]
I propose to take Questions Nos. 96, 111 and 112 together.
Balance of payments statistics produced by the Central Statistics Office show that direct investment inflows into Ireland amounted to £17,714 million last year. Inward investment into IFSC enterprises accounted for about 60% of this. Data for this year is not available.
Ireland remains an attractive location for mobile foreign direct investment. By improving the incentive to take up employment the income taxation packages of recent years will have the effect of boosting labour supply. This additional labour supply should help to reduce some of the constraints currently being experienced in the labour market which is of particular importance for foreign owned multinationals locating in Ireland. Additional labour supply should also help to reduce wage demands which will enhance the competitiveness of the economy. In addition, recent budgets have helped to maintain the partnership process which is an important consideration for the competitiveness of the economy.
Improving the infrastructure of the State through the implementation of the National Development Plan 2000-2006 will also have positive implications for the competitiveness of the economy.
Other factors encouraging continued inward investment include a favourable corporation taxation regime; a favourable grant structure; a young, flexible, skilled and well educated workforce; a pro-business environment; participation in EMU; and access to the EU market.