Dáil Éireann díospóireacht -
Tuesday, 26 May 1998

Vol. 491 No. 3

Written Answers. - Industrial Development.

Bernard J. Durkan

Ceist:

78 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that Ireland will retain its position as an attractive investment base in the run up to, and following, European Union enlargement; if she has satisfied herself that Ireland is competing satisfactorily with its fellow European Union members for industrial investment; and if she will make a statement on the matter. [12120/98]

Bernard J. Durkan

Ceist:

158 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans, if any, she has to redouble her efforts to enhance Ireland's image as an investment location in view of the United Kingdom's position on the single currency; and if she will make a statement on the matter. [12350/98]

Tánaiste and Minister for Enterprise, Trade and Employment (Miss Harney)

I propose to take Questions Nos. 78 and 158 together.

I am satisfied that Ireland can retain its position as an attractive investment base in the run up to, and following, European Union enlargement. Ireland is presently competing satisfactory with its fellow European Union members for industrial investment.

According to the Swiss-based International Institute for Management Development, Ireland has moved up to 11th position in the league table of most competitive countries — up from 22nd position in 1996 and 15th position in 1997. Four main factors account for this: successive social partnerships; a young educated workforce; foreign direct investment and infrastructural investment in training, education, industry and transport.

The ESRI Medium Term Review 1997-2003, commenting on the recent Irish growth experience, pointed to the very important role of foreign direct investment in transforming the economy. With less than 1 per cent of Europe's population and GDP, Ireland wins substantially higher levels of FDI than our natural share would warrant. The part played by the IDA in achieving this success has been widely acknowledged.

It is clear from the work of Forfás, the policy and advisory board for industrial development in Ireland, and the National Competitiveness Council established in 1997 under Partnership 2000 that IDA Ireland is pursuing its objectives within a global context which is increasingly competitive, complex and unpredictable. We must successfully navigate our way through the strategic competitive issues and continue to adopt a prudent stance in regard to public expenditure, wages rates and the management of the economy if we are to improve on our economic performance in recent years and maintain our position as a competitive, attractive place for investment. In this context the work of the National Competitiveness Council will be of vital strategic importance. Ireland's confirmed participation in the single European currency should enhance our attractiveness as a location for internationally mobile investment.