Tuesday, 27 May 2014

Questions (334)

Marcella Corcoran Kennedy

Question:

334. Deputy Marcella Corcoran Kennedy asked the Minister for Jobs, Enterprise and Innovation the amount of foreign direct investment in Industrial Development Agency Ireland supported companies in the cities and counties of Dublin, Limerick, Cork and Galway and in counties Laois and Offaly in the years 2010, 2011 and 2012; if IDA has met its Horizon 2020 strategy aims in terms of regional development; and if he will make a statement on the matter. [22411/14]

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Written answers (Question to Jobs)

I am informed by IDA Ireland that in the three year period 2010 to 2012 inclusive, IDA Ireland has paid a total of €221,920,153 in grant aid to its client companies in the cities and counties of Dublin, Limerick, Cork and Galway and in counties Laois and Offaly. Detail of the amounts paid in respect of each county in respect of each of the years 200, 2011 and 2012 are set out in the attached tabular statement.

The IDA Ireland Strategy for the period 2010 to 2014, “Horizon 2020”, set an ambitious regional economic development target of 50% of investments in regions outside Dublin and Cork and this has proven to be a challenge. During the period 2010 to 2013, approximately 35% of all FDI announcements were in locations outside of Dublin and Cork, while 40% of all FDI site visits by potential investors were to locations outside of Dublin and Cork. In terms of IDA supported job numbers, the latest figures to hand which are contained in the Forfás Annual Employment Survey, 2013 show that 72,500 people, roughly 44% of the total employment in IDA Ireland’s base of companies including those that were former clients of Shannon Development, are located outside of Dublin and Cork.

It must be acknowledged that some regional locations outside of Dublin and the main urban centres already facilitate the presence of a large number of multinational companies who have invested over the years, span multiple sectors and employ significant amounts of people. The primary opportunity for regional locations is in respect of the existing client base and potential further investment opportunities from same. Approximately 70% of all FDI investments won by IDA Ireland is from the existing client base.

Under the Action Plan for Jobs 2014, IDA Ireland and Enterprise Ireland are working with my Department to develop a framework for a Regional Enterprise Strategy to better integrate the efforts of enterprise agencies and the other regional stakeholders in building enterprise based on sustainable competitive advantage of the region. This exercise will complement the in-depth analysis of our FDI strategy which is currently being undertaken by Forfás and which will take account of factors such as key trends emerging in FDI best practice internationally, Ireland’s strengths in attracting FDI and any changes to the EU’s State Aid Rules, which will come into effect on 1st July, 2014. The results of these two exercises will form the basis of IDA Ireland’s strategy from 2015 onwards.

Table showing IDA Ireland grant payments to its client companies in the cities and counties of Dublin, Limerick, Cork and Galway and in counties Laois and Offaly in each of the years 2010, 2011 and 2012

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2010

2011

2012

Total

Cork (city and county )

€20,119,751

€15,092,610

€14,308,619

€49,520,980

Dublin (city and county )

€46,420,938

€43,043,936

€22,156,125

€111,620,999

Galway (city and county )

€9,448,677

€14,107,397

€12,252,609

€35,808,683

Limerick (city and county )

€5,104,862

€7,801,591

€11,209,462

24,115,915

Laois

€274,324

€21,182

€0

€295,506

Offaly

€211,870

€338,200

€8,000

€558,070