Dáil Éireann Debate, Thursday - 24 January 2013
51. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the action he is taking to facilitate the inclusion of more Irish companies in the global supply chains of multinational companies in view of his recent comments that a 5% increase in local spending by multinationals would generate €500 million for the economy here in 2013; and if he will make a statement on the matter. [3177/13]
View answerIn accordance with the commitment given in the 2012 Action Plan for Jobs, IDA Ireland and Enterprise Ireland have established a senior management team to drive effective collaboration on key priorities such as including more Irish companies in the global supply chains of multinational companies. IDA Ireland has confirmed that its focus is on ensuring that each engagement with a client company, whether existing or new, includes, where appropriate, a discussion on the opportunity and potential for global sourcing from supplier companies based in Ireland.
Using data gleaned from an annual survey of the economic impact of companies in Ireland, which is undertaken by IDA and Enterprise Ireland, IDA Ireland, in consultation with Enterprise Ireland has, to date, met with key clients to assess the potential market opportunity and how best it can be targeted and approached. Arising from these discussions, a targeted approach is being piloted, concentrating on 65 companies which have the best potential to identify and secure global sourcing opportunities for sub-suppliers based in Ireland. The 65 companies selected for the first phase account for €20bn in sales/exports and employ 27,000 people. They have a total material spend in 2012 of €5.25bn, of which €0.5bn (9.5%) is currently sourced in Ireland. The value of their total services spend is €6.2bn with €0.63bn (10%) currently sourced in Ireland. I have asked the IDA and ET to give this initiative full support and I will be maintaining contact with them on progress.
