Dáil Éireann Debate, Thursday - 5 June 2014
52. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which foreign direct investment has resulted in job creation in each of the past five years to date; and if he will make a statement on the matter. [23967/14]
View answer54. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which foreign direct investment continues to play a role in enterprises here resulting in job creation; and if he will make a statement on the matter. [23969/14]
View answer58. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he expects job creation to continue arising from foreign direct investment here over the next two years; and if he will make a statement on the matter. [23973/14]
View answerI propose to take Questions Nos. 52, 54 and 58 together.
Foreign Direct Investment (FDI) has been, and will continue to be, an integral part of Ireland’s economic development strategy. Foreign-owned firms contribute substantially to Ireland’s exports, jobs, expenditure in the Irish economy and to Exchequer funds. FDI plays a key role in stimulating the development of ‘new’ sectors in Ireland, in enhancing our research, development and innovation performance and in accelerating the achievement of critical mass within sectors. Every 10 jobs in an IDA Ireland client company supports 7 jobs in the wider economy.
I am glad to say that the numbers employed in companies supported by IDA Ireland has steadily increased in the five year period 2009 to 2013 inclusive. Total employment in IDA Ireland client companies (including companies that were formerly clients of Shannon Development) has risen from 144,843 in 2009 to 166,184 in 2013.
The Action Plan for Jobs is a key component of the Government’s response to the unemployment problem and its specific ambition is to have 100,000 more people in work by 2016. The Government has set out an objective to create a positive environment to support business start-ups and growth, drive exports and facilitate job creation and retention by the enterprise sector.
Under the 2014 Action Plan for Jobs, IDA Ireland is tasked with the creation of 13,000 new gross jobs (yielding approximately 6,000 net new jobs) during the year. Significantly, under the Plan additional resources are committed to IDA Ireland aimed at achieving an increased market presence and consequential delivery of an additional 10,000 new jobs (6,000 direct and 4,000 indirect) over and above the year’s target of 13,000, intensifying employment growth over a five year period.
In addition the Action Plan for Jobs 2014 includes a commitment to develop a framework for a Regional Enterprise Strategy to better integrate the efforts of the enterprise development agencies and other regional stakeholders in supporting enterprises. My intention is that the framework will be developed on a pilot basis initially, focusing on the Midlands region, and involving the agencies under the remit of my own Department – Enterprise Ireland, IDA Ireland and the Local Enterprise Offices. The objective is to enhance synergies between the agencies and their client companies and build on the competitive strengths of the region to maximise the potential for job creation. The role which other public bodies in the region can play in working towards this objective will also be examined as the project develops. The aim is that this framework will serve as a model for other regions of the country.
Under the 2014-2020 Regional Aid Guidelines, which will enter into force on 1 July 2014, areas accounting for 51.28% of Ireland’s population will now be eligible for assistance. This represents a substantial increase from the 25% originally proposed by the Commission, and an increase from the 50% under the 2007-2013 Map. Another key issue for Ireland in the negotiations on the Regional Aid Guidelines with the Commission was the prospect of not being allowed to grant aid large enterprises. Ireland was part of a group of Member States that successfully negotiated a compromise with the Commission whereby it will be possible to provide investment aid to large enterprises for new economic activities and diversification of existing enterprises into new products or new process innovation. Aid intensity rates were also maintained at their current levels.
While the global outlook for FDI continues to be challenging, I am satisfied that IDA Ireland will continue to deliver on its target of creating a further 13,000 jobs this year as set out in the Action Plan for Jobs 2014.
