Dáil Éireann Debate, Thursday - 8 December 2016
5. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation the meetings she and her Department's agencies have had to prepare for possible adverse impacts of the upcoming Trump Presidency such as the recent cancellation of a €400 million expansion plan by an American company based here (details supplied); and if she will make a statement on the matter. [39184/16]
View answerPresident-elect Donald Trump, or The Donald as he used to call himself, tweeted on a number of occasions that any business that fires its employees in the United States and builds a new factory or plant in another country cannot then expect to be able to sell its products into the United States without retribution or consequences. That is wrong. I note the Taoiseach visited Silicon Valley and in New York he met Mayor Bloomberg and representatives of Irish companies and so on.
Has the Minister concerns? Has her Department received additional resources? I asked the Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, about this a few weeks ago, particularly in regard to IDA Ireland and Enterprise Ireland, so he might address the challenge that may be presented by the Trump presidency.
My Department and its agencies closely monitor political and commercial developments, both in the United States and elsewhere, and we plan accordingly for changes that could affect the enterprise environment in Ireland. This is a normal and ongoing part of our work in ensuring that our open and export-oriented economy remains internationally competitive.
There has been speculation about the potential impact of the recent American presidential election result on foreign direct investment into Ireland. It is still far too early to make any definitive judgments on this. I do expect, however, that Ireland will continue to attract significant foreign direct investment from the United States. That is because US companies will have a continued need for a global presence in the years ahead, and Ireland is well placed in this regard given its proven track record and continuing access to the European market.
On the cancellation of the investment plan by the company referred to, I understand the company has not linked this to the forthcoming change of Administration in the United States. Instead, it is my understanding that the decision followed the cancellation of a proposed new drug that had been due for manufacture in the Irish plant. While this was regrettable, the company in question continues to employ very significant numbers of staff in several locations here and has made significant investments in its Irish facilities.
Regarding Pfizer's cancellation of its expansion at Grange Castle, which would have been worth €400 million to the economy and an additional 350 permanent jobs, the timing was unfortunate, at the very least. The company attributed this to the cancellation of the new drug for controlling cholesterol. There is concern over this.
The Taoiseach met President-elect Trump's strategic and policy forum of leading US businessmen. He also met Mayor Bloomberg and others. Was the Minister on that trip? Was her Department involved in that regard given the critical nature of what is at stake at this critical juncture?
The Minister gave a very wide-ranging and comprehensive speech to Dublin Chamber of Commerce a few weeks ago. She wants Ireland to be in the top five in terms of competitiveness, yet Dublin Chamber of Commerce's own survey of business confidence shows a decline in the last three quarters, certainly for the Dublin region. Obviously, this is partially related to both Brexit and Mr. Trump's election, and perhaps even to quantitative easing. What additional resources is the Minister getting in respect of IDA Ireland and Enterprise Ireland, in particular, in order to address the challenge we now face?
The Deputy asked whether I was on the trip with the Taoiseach. I was not but I was on a trip in the autumn, approximately six weeks ago. The Deputy asked whether we are getting additional resources. We are. In the budget, €50 million in additional capital funding was allocated, representing a 10% increase, and €3 million extra in current funding was allocated. That money has been allocated to ensure a good and sustainable response to Brexit.
What was the Deputy's other question?
I asked the Minister about her speech to Dublin Chamber of Commerce. It is very nervous at the moment.
I have heard Mr. Aebhric McGibney say that. I was at another breakfast meeting at which an accountancy firm presented the results of a survey showing the chief executive's response was much more resilient and optimistic. The company was indicating it will take on staff next year.
Taking account of the action plan for jobs and having spoken to Enterprise Ireland and IDA Ireland chief executives, I believe the pipeline is good. It would be unfortunate if we were to talk ourselves into being less optimistic about the sustainability of the country by being overly concerned. Of course we are concerned but we are doing what is right. We are putting money where solutions can be achieved and we are working our way through it. With regard to Enterprise Ireland, work has been done with all the companies on a one-to-one basis.
It is now really important that we work not only sector by sector but also company by company because the companies have different requirements and difficulties.
Many of us were heartened last night to see on BBC's "Newsnight" programme that a London banking company said it is moving to Dublin. It is definitely coming to Dublin with approximately 140 jobs. That seems to be the message. Obviously, there will be swings and roundabouts in the circumstances we face. It was said we are in competition with Paris, Frankfurt, Bratislava, Malta and Madrid in respect of the provision of banking-related facilities in the European Union. Therefore, I wonder whether any special effort is being made in the City of London by the IDA.
I assure the Deputy that there is. We are actively considering the whole banking sector in the United Kingdom and the opportunities that might arise for Ireland.
