Dáil Éireann Debate, Thursday - 29 June 2023
221. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which any changes in foreign direct investment have been affected by international issues; and if he will make a statement on the matter. [31953/23]
View answerThere have been a number of international issues over recent months and years which may potentially impact FDI investors’ decision making, including the COVID-19 pandemic, Russia’s war against Ukraine and Brexit, as well as various geopolitical developments. While these global challenges persist, Ireland continues to be a location of choice for new investors and long-established companies alike.
Notwithstanding the foregoing challenges, IDA Ireland’s record annual results for 2022 demonstrate a strong flow of FDI into Ireland, with 242 investments won last year. The number of people employed by IDA multinational clients in Ireland reached 301,475 last year, the highest FDI employment level ever. Furthermore, Ireland has continued to perform at a high level into this year, with national employment reaching an all-time high of 2.6 million in Q1 2023.
It is noteworthy that these results were all achieved within a challenging economic and geopolitical environment including international factors such as rising energy costs, climate change, rising inflation, and increased international competition for FDI. These achievements, therefore, demonstrate not only the resilience of Ireland’s FDI sector amid global uncertainty, but also Ireland’s stable and attractive business environment, which enables global companies to successfully scale and grow from Ireland. Half of the multinationals located in Ireland have been here for 10 years or more, while one-third have been in Ireland for 20 years or more, another useful metric of how competitive Ireland is for FDI.
To ensure that Ireland continues to thrive in this uncertain global environment, my Department will continue to work alongside IDA Ireland to strengthen Ireland’s business environment and FDI value proposition. In that regard, the White Paper on Enterprise, which we launched last December, sets the strategic direction for job-creation and enterprise growth for the years ahead. The White Paper addresses changes in the international trading environment, vulnerabilities in our enterprise sector, and the need to integrate climate change commitments and the digital transition into enterprise policy for the decade ahead. It is under this framework that my Department will continue to address and respond to the challenges and obstacles emerging from our changing global environment.
