Dáil Éireann Debate, Thursday - 16 July 2015
286. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the estimated gross contribution of Industrial Development Agency Ireland supported companies to the gross domestic product output of the economy; and if he will make a statement on the matter. [29934/15]
View answer288. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the total estimated tax contribution to the Exchequer in terms of payroll and corporation tax of Industrial Development Agency Ireland supported companies; and if he will make a statement on the matter. [29936/15]
View answerI propose to take Questions Nos. 286 and 288 together.
The impact of the FDI companies is very significant to the Irish economy with some €2.6bn of materials and €11.3bn of services purchased by these companies annually.
The most recent data relating to the total estimated tax contribution to the exchequer in terms of corporation tax of IDA Ireland client companies is set out. The table also sets out the total spend on payroll by IDA client companies. Payroll taxes are not recorded separately by the agency.
Gross value added is conceptually similar to GDP but examines production on a sectoral level rather than final expenditure type and this is thus a better reflection of the contribution to the economy.
The latest available figures from the CSO show total Gross Value add (GVA), accounted for by foreign-owned MNE dominated sectors stood at 24.6% in 2013. Viewed over the period from 2008, the share of total GVA at constant prices accounted for by the foreign-owned MNE dominated sectors rose steadily from 23.6 per cent in 2008 to a peak of 26.8% in 2012, falling back to 24.6% in 2013. This was principally due to a combination of increased payments for royalties by Software & Communications entities and the impact of the pharma patent cliff.
During 2014 some 15,012 new jobs were created by IDA client companies with a net increase in employment of 7,131, one of the net highest levels of job creation in a decade. In the first half of the year, IDA approved 110 investment projects, which will lead to the creation of 9,000 direct jobs this year and over future years as the companies gradually roll out their investment plans and another several thousand indirect jobs.
|
Indicator |
2012 €m |
2013 €m |
% change 2012-2013 |
||
|
Corporation Tax €m |
2,800 |
2,800 |
8.2% |
||
|
Total Payroll Costs |
7,991 |
8,502 |
6.4% |
