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Dáil Éireann díospóireacht -
Tuesday, 18 Feb 2003

Vol. 561 No. 4

Written Answers. - Job Creation.

Bernard J. Durkan

Ceist:

207 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which she has identified further foreign investors; and if she will make a statement on the matter. [4761/03]

The identification of foreign investors is an operational matter for IDA Ireland, the agency charged with responsibility for the attraction of foreign direct investment. IDA seeks to find new investment opportunities on a continuous basis both from new and existing clients. Part of this effort is spearheaded by its overseas offices, which are located in the countries that are the major sources for foreign direct investment.

The IDA feels there is a brighter future ahead in 2003 for inward investment than there has been for the past two years. Despite the turbulent global conditions in 2002 the results for the year exceeded expectations, with a last quarter boost in new projects secured by IDA and a strengthening pipeline of investments in negotiation for the first quarter 2003.

IDA supported companies created 11,700 during 2002. Job loss trends have slowed, with 14,700 jobs lost in 2002 compared with 17,800 in the previous year. Total employment in IDA-backed companies fell by 2.2% during the year. The number of new investments secured in 2002 was up by two thirds on 2001: 55 new projects in manu facturing and international services were negotiated by IDA during 2002, compared with 33 in 2001. These projects are committed to creating 8,700 new jobs as they come on stream over the next few years.
The message is also getting through that more high value activities need to be added to overseas companies in Ireland. During 2002, 30 companies undertook to invest nearly €120 million in research and development activities in their Irish operations and IDA committed nearly €30 million to these projects. This indicates a very strong commitment to adding higher value activity to existing operations in Ireland.
Based on data now finalised for year ending 2001, IDA backed companies increased their sales and exports by around 10% and their value in the economy has increased to nearly €16 billion per annum through their local expenditures. Sales from IDA supported companies now total over €65 billion, with exports valued at €60 billion. IDA Ireland's commitment to regional development is stronger than ever and now with the national spatial strategy in place IDA is determined to see the emergence of strong magnets of attraction in each region. For their successful development each region needs to develop clear competitive reasons why companies would wish to locate there, rather than elsewhere. Much of the work needed to achieve such competitive advantage is outside the scope of IDA but through working in strong partnership with other organisations at national and local level IDA can support and influence the delivery of some of the required solutions. The IDA strategy to deliver 50% of all new greenfield jobs approved to the objective one regions was more than achieved in 2002.
The day to day work of promoting Ireland as an investment location continues apace. IDA's focus continues to be on the business sectors which have given us success in the past decade; information and communications technologies pharmaceuticals and health care engineering and international services – such as software, financial services and others. These are the cornerstones of IDA's development polices and any change in direction or activity is to drive investment projects higher up the value chain to match the new needs of businesses and of the economy.
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