Dáil Éireann Debate, Tuesday - 10 November 2020
185. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he plans to ensure the continued attractiveness of the economy for both indigenous and foreign direct investment; and if he will make a statement on the matter. [35403/20]
View answerIreland’s economy was in a strong position prior to the onset of the COVID-19 Pandemic. There were an unprecedented 2.3 million people at work and unemployment levels at below 5 per cent were at an all-time low. However, the economy was highly exposed to the performance of a small number of firms in a small number of sectors, and a small number of export markets.
The pandemic has accelerated many pre-existing trends including the green and digital transitions and has exacerbated the two-tiered structure of our economy, increasing the gap between domestic and export orientated firms. It has intensified sectoral and regional imbalances, divergence of productivity, unequal impacts on the labour market and potential changes to global trade and supply chains. Other issues such as decarbonisation have become increasingly central to the approach to recovery.
Multinational firms in Ireland have not been immune to the Covid-19 crisis, but their relative resilience has underlined the importance of foreign direct investment to Ireland. We cannot afford to take the resilience of MNCs, and their valuable contribution to communities across the country, for granted.
The SME sector, particularly firms in the employment intensive non-traded sector, has been disproportionately affected by the crisis. The threat of a hard Brexit widens the range of sectors exposed to economic risk.
To ensure a broad-based jobs-led economic recovery, the National Economic Plan will include a renewed focus on domestic SMEs through the delivery of an ambitious SME Growth Plan, while also enhancing our value proposition for FDI in an increasingly competitive global environment. It will set out our approach to developing both the indigenous and FDI sector in tandem, including through spillovers and clusters.
