Dáil Éireann díospóireacht -
Tuesday, 6 Feb 2001

Vol. 529 No. 4

Written Answers. - Overseas Employment.

Bernard J. Durkan

Ceist:

111 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which Irish firms have invested in employment creating enterprises overseas in the past 12 months; and if she will make a statement on the matter. [3214/01]

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

No formal mechanism is in place to monitor the overseas investments of the agencies clients or Irish firms generally. However, Enterprise Ireland and Shannon Development would, of course, usually become aware of such investments by their client companies and would often have a supportive role to play in this regard.

The past ten years or so have seen globalisation and international investment gather increasing momentum. Our industrial policy has successfully capitalised on this trend and the benefits to our economy of foreign direct investment are well known. At the same time we have been placing a special emphasis on helping to build competitive, world class indigenous enterprises that can successfully compete in demanding world markets. Both economic growth and the ability to enhance the sustainable competitive advantage of indigenous enterprise are based on strengthening our linkages with the world economy through expanding international trade and investment.

Building indigenous firms with the scale and capacity to successfully compete internationally requires investments in markets abroad. Enterprises make these investments for sound strategic reasons and we have numerous examples of world class Irish multinationals that have become visibly successful by investing abroad to better serve their customers and win international market share. Outward direct investment is beneficial to our economy across a range of indicators, including export performance and diversification, employment and pay levels at parent companies, company profitability and growth, access to international capital markets and the development of globally minded management teams.

Enterprise Ireland and Shannon Development play an important role in providing advice and other forms of non grant support to indigenous firms that have a strategic objective to internationalise their activities. This advice is often provided both formally and informally through EI's network of overseas offices and indeed sometimes through our embassies abroad. The assistance includes expert advice and networking services and assistance with overseas trade and investment missions.