Dáil Éireann debate -
Wednesday, 10 Oct 2001

Vol. 541 No. 5

Written Answers. - Foreign Investment.

Bernard J. Durkan

Question:

168 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she has taken to encourage continued overseas investment here in the aftermath of recent atrocities in the United States and continued uncertainty in the various economies throughout the world; and if she will make a statement on the matter. [23228/01]

Bernard J. Durkan

Question:

181 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has taken supportive steps in recognition of the United States investment here in the wake of the recent atrocities in the United States; and if she will make a statement on the matter. [23477/01]

Bernard J. Durkan

Question:

185 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures she has taken to encourage overseas investment here in the wake of the economic worldwide downturn; and if she will make a statement on the matter. [23481/01]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

I propose to take Questions Nos. 168, 181 and 185 together.

I can inform the Deputy that IDA Ireland has expressed its sympathy with the individuals, families and US companies in Ireland who may have relatives, friends and colleagues involved in the awful events on 11 September last.

With regard to the impact on new overseas investment it is not possible at this time to predict the full effects of the recent atrocities. However, there is no doubt that new foreign direct investment, FDI, business will be adversely affected by both these events and the world economic downturn.

In order to ensure that Ireland is well placed to win overseas investment in the current climate and into the future, IDA through its network of overseas offices is increasing the number of targeted marketing visits abroad in the light of the current reluctance of many overseas companies to use aircraft; working closely with senior management in a range of overseas companies who have expressed an interest in overseas investment in an effort to ensure that they are aware of the advantages of locating in Ireland and to encourage them to arrange a site visit at an early date; continuing to build on existing contacts in companies who are in sectors targeted by IDA but who have no existing plans for overseas investment, in an effort to encourage them to consider investing in Ireland and targeting companies in niche product areas as part of an approach to develop clusters of excellence in Ireland.

In addition, in order to maximise the potential of the existing base of IDA client companies and to minimise job losses, IDA is working to ensure that they become more embedded in the Irish economy and that they are constantly moving up the value chain in terms of their Irish operation.

As part of this process IDA is remaining in contact with client company management in Ireland and overseas to ensure that their Irish operations secure a wider corporate mandate and become a vital part of the corporate value chain – thus helping to ensure the growth and long-term survival of the company in Ireland.

In this context, IDA's objective is to persuade client companies to add strategic functions in Ireland such as R&D, technical support, software development, e-commerce, logistics, and shared services.

Furthermore, in order to gain from the next upturn in the global economy, the business environment for overseas companies is being improved by enhancing our skill base by continuing to tailor education and training to market needs, reducing the non-completion rates in higher education, building our road and housing and telecoms infrastructure and ensuring that future cost increases are in line with EU norms and shaping the regulatory environment – planning laws labour laws etc. – to ensure that Ireland is a place where companies can operate with flexibility, agility and speed.