Dáil Éireann Debate, Thursday - 5 October 2023
215. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied this country continues to remain an attractive location for investments in jobs; and if he will make a statement on the matter. [43441/23]
View answerIreland is widely acknowledged to promote a stable pro-enterprise economy, reflected in our continued ability to attract and retain foreign direct investment (FDI) and the jobs that this investment brings. I am conscious of the need to maintain our competitive position on an international stage, given the contribution of FDI to the domestic economy, and in light of an increase in geo-fragmentation and protectionist policies the world over.
Latest data shows that the stock of FDI in Ireland stands at almost €1.2 trillion, which continues to support highly-skilled employment. In its latest annual report, the IDA reported the highest ever increase in FDI-related employment last year, with a 9 per cent increase in employment on 2021. The numbers employed in the multinational sector in Ireland in 2022 is estimated at over 300,000 according to the IDA. Furthermore, this investment and job creation supports indigenous SMEs indirectly. Of course, multinational enterprises also contribute to the economy by way of income and corporation tax receipts.
That being said, the global economy is facing into considerable uncertainty. As a small economy highly integrated into global value chains, Ireland is particularly exposed to risks to the global outlook, which include a potential increase in geo-political tensions and a potentially weaker Chinese economy; both of which would have implications for global value chains.
These are factors we cannot control, which means we must put every effort into what we can control so that Ireland retains its competitive advantage. This includes future-proofing our strong regulatory and legal landscape, promoting our reputation as a stable economy in which to make long-term and job-rich investments, the likes of which we have seen most recently in the pharma, med-tech and semiconductor sectors. We will also need to continue to invest directly in critical infrastructure such as housing and health, making Ireland a competitive place to live and work in the context of an increasingly sparse global talent pool, while continuing to invest in our own domestic skills.
This Government will not become complacent, ensuring that Ireland remains a competitive location for investment and job creation, despite the weak global outlook.
