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Dáil Éireann díospóireacht -
Thursday, 25 Jul 1996

Vol. 468 No. 4

Written Answers. - Foreign Company Investment.

Edward Nealon

Ceist:

805 Mr. Nealon asked the Minister for Enterprise and Employment if a South Korean firm (details supplied) which has decided to locate a multi-million pound electronics development in Newport, Wales, had consultations with his Department, the IDA, or other relevant people with a view to locating the project in this country; the factors that were the final influence in the South Korean firm deciding to locate in Wales; and if he will make a statement on the matter. [15126/96]

Ireland was a competitor for the LG Group investment at the outset and IDA Ireland hosted visits and had detailed negotiations with several top level delegations from the company and its advisors. In April 1996, I with the Chief Executive of IDA Ireland and the Irish Ambassador to Korea visited LG Group in Seoul and had discussions with senior officials at the company in relation to the project. At that time I took the opportunity to support IDA's efforts to promote Ireland as a location for the company's overseas investments and also to endorse the benefits of the Government's ongoing pro-business policies.

As I have pointed out in the past a variety of factors come into play in the decisions of foreign companies as to where to locate particular projects. Incentive packages and access to markets are some of the many factors which influence this choice. I understand, too, that proximity to a local market could have been a factor of some significance for certain high volume-low value products within the overall package. In the final analysis, of course, decisions as to where to locate overseas manufacturing operations rest with the owners of companies themselves and are beyond the control of IDA Ireland.

In this particular case it must also be borne in mind that LG Group already has large scale manufacturing facilities in the UK, successfully producing a range of consumer goods. Hence the company had a high level of comfort with a UK location. The attraction of inward investment is a very competitive business and Ireland has had an extremely successful track record in attracting new projects. In 1995, a total of 22 electronic and software projects, with an employment potential of almost 7,000 jobs, were approved by IDA Ireland. To date in 1996, a total of 18 electronic and software projects, with an employment potential of more than 3,800 jobs, have been approved. I am confident that Ireland remains competitive and will continue to win high tech projects against very strong competition from many sources.
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