Vol. 430 No. 5
128 Mr. Durkan asked the Minister for Finance if he has satisfied himself that investment conditions are likely to remain good for a sufficient period to enable a substantial improvement in employment; and if he will make a statement on the matter.
The prevailing downward trend in interest rates augurs improved investment conditions this year. However, world economic activity, another very important determinent of investment, remains relatively subdued. Domestic policies and responses are the third factor critical to Irish investment prospects.
The Government is conscious of the importance to employment prospects of investment and is acutely aware that stability, low inflation and international competitiveness, and physical and other infrastructure conducive to business success are essential preconditions to investment growth.
Creating and maintaining these have been, and as is clear from this year's budget remain, key objectives of Government policy. A particularly significant boost to investment in the Irish economy will arise through the programmes financed by the enhanced EC Structural and the new Cohesion Funds over the medium term. Improvements to the overall business infrastructure arising therefrom will enhance the conditions for further autonomous commercial investment and job-creation over the longer term.
