Dáil Éireann Debate, Wednesday - 29 June 2022
1. Deputy Michael Lowry asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will share his Department's enterprise contingency plan in the event of decreasing levels of foreign direct investment in Ireland as a result of the implementation of the global and-or European minimum tax rate; and if he will make a statement on the matter. [34815/22]
View answer2021 was a record year for FDI in Ireland. IDA Ireland won 249 investments, increasing Ireland’s market share of investment into Europe in the face of global declines in FDI. The number of people directly employed in multinational companies in Ireland grew to over 275,000. FDI investment decisions were taken not only within the context of the OECD International Tax negotiations, but also during an uncertain environment due to Brexit and the COVID-19 pandemic. These results demonstrate Ireland’s continued attractiveness as an FDI destination.
Ireland’s signing of the OECD International Tax agreement in July 2021 provided stability to prospective and current multinational companies investing in Ireland. While the high-level agreement was reached in 2021, the specifics of how the new rules will operate in practice remain to be seen. IDA and its client companies are monitoring these international developments closely, and recent FDI investments would indicate that Ireland is still attractive to FDI investors. The corporation tax rate is only one aspect of Ireland’s value proposition to MNCs. Companies investing in Ireland also reap the benefits of a young and highly educated workforce, a business-friendly environment, a stable economic and political environment, Ireland’s commitment to European Union membership and access to the single market.
IDA Ireland report that globally, efforts to secure FDI are currently affected by issues such as disrupted global supply chains, increased energy costs and potential supply issues, increased construction and infrastructure costs - all issues which have been impacted by the pandemic and geopolitical events.
In order to provide an appropriate response to current economic and geopolitical challenges, in March Government agreed to the development of a White Paper on Enterprise Policy by the end of the year, led by my Department. The White Paper will set out an ambitious medium-to long-term direction for enterprise policy. In so doing, the White Paper will articulate what needs to be done differently to realise this vision and to set out clearly the risks to be faced, and the policy choices that will arise in order to maintain high-quality jobs, and to protect the elements, including FDI, which make Ireland’s economy globally attractive for investment.
