Written Answers. - Job Creation.
Phil Hogan
Question:
148
Mr. Hogan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
if she has satisfied herself with the number of jobs being created arising from inward investment and the time lag between jobs created and the original jobs announcement; and if she will make a statement on the matter.
[18801/03]
IDA Ireland has statutory responsibility assigned to it by the Oireachtas for the attraction of foreign direct investment to the State and its regions. Inward investment is a significant source of employment in the Irish economy. At the end of 2002, total permanent employment in IDA Ireland client companies amounted to 133, 246. This is a substantial base of employment within manufacturing and internationally-traded services. Irish economy expenditures of foreign companies amounted to more than €17 billion in 2001.
Over the past decade or so, inward investment has been responsible for generating an average of approximately 14,000 permanent new jobs per annum in the Irish economy. This is a substantial number of jobs in a small open economy. Notwithstanding this achievement, however, it is important to recognise that the employment performance of the overseas sector will fluctuate over time in line with global economic conditions and we must prepare for and respond accordingly to these fluctuations through appropriate policy adjustments and investment where required. Currently, there are 1,094 firms in the IDA Ireland portfolio and they employ over 130,000 people. Significantly, there are more people employed in IDA Ireland companies in 2003 than there were when the number of companies peaked at 1,276 in 1999. This indicates that while the number of companies has decreased, the employment performance of the existing base has been quite robust.
It is true to say that there is usually a time lag between the announcement of new jobs and the creation of those jobs. Indeed, only a small number of the jobs announced in any given year would normally be expected to be created within the same year. The reasons for the time lag are as follows: The time required to locate and acquire a suitable site for the companies operations; the time needed to construct a facility and to install plant and machinery, in the case of manufacturing plants, and other enabling infrastructure; recruitment and training of staff, etc. It should also be noted that frequently the number of jobs quoted in announcements refer to the number of jobs which a company expect to create over a number of years.
IDA Ireland is committed to the continued development of the industrial sector in Ireland. It encourages companies to seek and acquire additional functions from their parent companies to broaden their range of expertise and activities and, thereby, increase their strategic importance to the overall corporation. In addition, it seeks to replenish the pool of overseas firms each year by targeting and winning new business. I am confident that these measures, together with the commitment of Government to enterprise attraction, growth and development, will ensure our continuing success in this area. The recent series of announcements of new greenfield projects and expansions is an indication of Ireland's continuing attractiveness for international investment.
Question No. 149 answered with Question No. 72.
