Dáil Éireann Debate, Thursday - 16 October 2014
14. Deputy Stephen S. Donnelly asked the Minister for Jobs, Enterprise and Innovation his views on Ireland's economic over-reliance on imports of all kinds; if he will change the terms of reference for Enterprise Ireland and, in particular, its high-potential start-up programme to include import substitution; and if he will make a statement on the matter. [39077/14]
View answerIreland is a highly globalised, small open economy with trade at the core of its economic model. While Ireland has high import intensity relative to the size of our economy, this is also matched and indeed exceeded by very high export intensity. As such Ireland is a net exporter to the world which underpins the growth in our economy as measured by GDP and GNP, and this has been a principal factor in the economic recovery which has taken hold in recent times.
Enterprise Ireland (EI) has responsibility for the development of Irish enterprise in the manufacturing and internationally traded services sectors.
EI's remit is set out in legislation with policy direction provided by my Department. This is the basis for EI's focus on the internationalisation of Irish-owned enterprise and the agency works with companies that have the ambition and potential to develop sustainable export sales.
In order to qualify for potential support a company needs to demonstrate where an international agenda fits in their business plans. EI's approach then combines a comprehensive suite of financial supports with the provision of practical services, expertise and advice, both at home and through an extensive overseas office network. These supports are provided to target development across all aspects of a company's business plan.
It is recognised that success domestically does contribute to the viability of a new or growing enterprise and to that extent it is a valuable and welcome constituent part of the company's target market. As a general principle, a purely domestic focus is typically considered insufficient to justify State resources (in funding and support services), primarily for reasons of deadweight, displacement and value for money.
Ireland is one of the most open economies in the world. Enterprise Ireland believes companies capable of supplying goods and services (and which might be classified as import substitutes) to a highly competitive domestic market which includes major foreign-owned companies should also strive to supply these goods into overseas markets.
