Dáil Éireann Debate, Thursday - 10 February 2022
69. Deputy Éamon Ó Cuív asked the Tánaiste and Minister for Enterprise, Trade and Employment the main attractions and drawbacks of Ireland as an attractive place to locate foreign direct investment; the policies being pursued to improve the attractiveness of Ireland as a location for such investment; and if he will make a statement on the matter. [6710/22]
View answerIreland continues to be an attractive location for foreign direct investment, with strong FDI results in 2020 and in 2021, despite COVID-19 and a downturn in global FDI.
In 2021 IDA won 249 investments, 104 of which were new name investments. The number of people directly employed in MNCs in Ireland grew to 275,384, with over 29,000 new jobs being created by the sector in 2021. These figures indicate strong investor confidence, as these investment decisions were taken not only within the context of the OECD International Tax negotiations and agreement, but also during a difficult and volatile international environment as a result of both Brexit and the COVID-19 pandemic.
Our recent decision to join the OECD international agreement is unlikely to adversely impact Ireland’s existing base of foreign direct investment. From a tax perspective, Ireland will remain a highly competitive place to do business. We will continue to offer a 12.5% rate to over 95% of companies operating in Ireland. For those larger companies affected by the decision, the recent changes will provide clarity and much-needed certainty for investors on the global minimum tax rate that will apply to them.
Ireland has proved itself to be a resilient, stable, and reliable partner for MNCs. Our contingency planning since 2016 has reduced the impacts of Brexit on business, and IDA’s multinational clients have not reported any major issues as the new trading relationship took effect.
Factors which enhance Ireland’s attractiveness to foreign investors include our pro-enterprise policy environment, our highly educated English-speaking workforce, as well as our membership of the European Union. IDA Ireland, with the support of my Department, continues to work closely with international clients, from a range of sectors, to attract job-rich investment from overseas firms.
