Dáil Éireann Debate, Thursday - 11 May 2023
173. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he and his Department continue to press for continued support and incentives via foreign direct investment and indigenously in respect of both manufacturing and the services sectors in this country, North and South; and if he will make a statement on the matter. [22330/23]
View answer174. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which this country continues to compete satisfactorily in respect of job creation in the manufacturing and services sectors vis-à-vis others in the Eurozone and without, and third countries; and if he will make a statement on the matter. [22331/23]
View answerI propose to take Questions Nos. 173 and 174 together.
Promoting Foreign Direct Investment (FDI) and supporting our Irish-owned firms are central elements of the White Paper on Enterprise which was launched last December. In particular, the White Paper includes a regional target of unemployment not exceeding one percentage point of the national unemployment rate in any region.
The continued promotion of FDI and indigenous enterprise in Ireland is further supported by the Economic Recovery Plan and the Trade and Investment Strategy 2022-2026: Value for Ireland, Values for the World. Key priorities set out by that Strategy focus on the promotion of Ireland’s investment ecosystem and reaping the benefits of the EU Single Market.
As part of Government’s Shared Island initiative, we will continue to pursue opportunities for North/South co-operation to enhance the investment proposition of the island as a whole and in the border region. This includes collaboration on research and innovation, skills, transport connectivity, renewable energy, and the development of sectoral ecosystems across both jurisdictions.
FDI plays a significant role in Ireland’s economy and the flow of investment into the country is strong. Numbers directly employed in the multinational sector in Ireland reached 301,475 at the end of 2022, the highest FDI employment level ever, and a 9% increase on 2021. Employment growth was achieved right across the country, with over half of the 242 investments won in 2022 going to regions outside Dublin. These record results demonstrate not only the resilience of the FDI sector in Ireland, but also the strength of Ireland’s value proposition and attractive business environment, which enables global companies to successfully invest and expand in Ireland.
Government recognises that there is strong global competition for FDI, and the IDA closely monitors competitor locations and the value propositions they offer. Published reports from subject matter experts including EY and FDI Markets indicate the top performing countries in Europe for FDI attraction and Ireland features prominently in these rankings, typically alongside far larger countries including the UK, Germany, Spain, France, and Poland.
Factors which enhance Ireland’s attractiveness to foreign investors include our pro-enterprise policy environment, our highly educated and 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. Nonetheless, we are not complacent, and the White Paper on Enterprise has set out a number of the key challenges faced by both FDI and Irish-owned enterprise, including the overall carrying capacity of the economy, and identifies the key priorities to be addressed to maintain a strong pro-enterprise and pro-jobs economy.
