Industrial Development

Dáil Éireann Debate, Wednesday - 29 September 2010

Wednesday, 29 September 2010

Ceisteanna (1604, 1605, 1606)

Arthur Morgan

Ceist:

1692 Deputy Arthur Morgan asked the Minister for Enterprise, Trade and Innovation the geographic concentration of foreign direct investment in each of the past ten years; the numbers of Industrial Development Agency supported companies that have been set up in each of the past ten years; the numbers of IDA supported companies that have been set up in each of the past five years on a county basis; and if he will make a statement on the matter. [31939/10]

Freagraí scríofa

Minister for Enterprise, Trade and Innovation (Deputy Batt O’Keeffe)

Foreign direct investment industries are located in each county in the State, and in the Shannon Free Zone. The greatest concentration of FDI industries is in Dublin.

Table 1 shows the number of foreign companies supported by IDA on a county by county basis and by Shannon Development in the Shannon Free Zone in each year of the past 10 years.

In the same 10 year period, a total of 261 IDA supported companies have been set up, while 28 FDI companies have been established in the Shannon Free Zone.

In the past 5 years a total of 106 IDA supported companies have been set up throughout the country, while 8 Shannon Development supported companies have been set up in the Zone. Table 2 shows, on a county by county basis, the number of IDA supported companies which have been set up in each year of the 5 year period 2005 to 2009.

IDA is fully committed to securing a balance in regional development and one of the targets set in the Agency's Strategy "Horizon 2020”is that in the period 2010 to 2014, 50% of new or expansion investments will be located outside of Dublin and Cork.

Frequently, competition for Foreign Direct Investment comes not from other countries but from city regions with populations in excess of one million people. Dublin is the only recognised city region in Ireland that meets this criterion. If FDI is to continue to contribute to balanced regional development the other regions of the country must be promoted as regions of scale with urban centres that provide the range of infrastructure and services that high value investment projects demand. This objective is being pursued under the National Spatial Strategy. IDA continues to vigorously promote the regions to potential investors.

Table 1: showing the number of foreign companies supported by IDA on a county-by-county basis and by Shannon Development in the Shannon Free Zone in each of the past 10 years.

County	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009
Carlow	8	8	9	9	8	8	8	7	9	9
Cavan	11	10	9	8	8	7	5	5	5	5
Clare	13	12	11	10	10	10	10	10	10	9
Cork	140	138	141	141	144	145	143	141	135	134
Donegal	15	14	14	14	14	14	15	14	14	13
Dublin	670	618	544	519	500	499	505	521	504	482
Galway	53	52	56	57	57	55	53	52	51	48
Kerry	21	21	20	21	19	16	15	15	15	14
Kildare	32	32	31	31	30	31	31	29	28	26
Kilkenny	8	9	9	7	7	7	7	6	5	4
Laois	5	6	5	5	4	4	4	4	4	4
Leitrim	5	6	6	6	6	6	6	6	5	5
Limerick	42	42	41	43	39	39	37	41	42	39
Longford	7	8	7	8	7	7	7	8	8	7
Louth	25	22	19	19	18	19	19	20	20	22
Mayo	25	24	25	23	21	20	19	19	19	18
Meath	18	18	18	16	16	16	16	16	15	14
Monaghan	7	8	9	9	7	7	7	6	6	6
Offaly	13	12	11	10	10	10	9	8	8	7
Roscommon	8	8	8	8	9	9	8	8	8	8
Sligo	22	22	25	25	23	24	22	19	20	20
Tipp North	8	7	5	6	6	6	5	4	4	4
Tipp South	12	12	12	12	12	12	11	12	12	11
Waterford	35	35	35	35	33	33	34	33	32	32
Westmeath	19	18	18	18	17	19	18	20	20	18
Wexford	16	13	13	12	12	12	11	11	11	11
Wicklow	26	25	24	25	23	22	20	19	18	17
Shannon Free Zone	84	84	82	79	72	69	66	64	65	60

Table 2 showing, on a county by county basis, the number of IDA supported companies set up in each year of the 5 year period 2005 to 2009.

County	2005	2006	2007	2008	2009
Cavan	0	0	0	2	0
Clare	0	0	0	0	0
Cork	3	3	2	3	4
Donegal	0	2	1	0	0
Dublin	9	6	11	11	7
Galway	0	1	2	1	5
Kerry	0	0	0	0	1
Kildare	1	0	0	0	0
Kilkenny	0	0	0	0	0
Laois	0	0	0	0	0
Leitrim	0	0	0	0	0
Limerick	1	0	4	4	0
Longford	0	0	1	0	0
Louth	0	2	2	1	3
Mayo	0	0	0	0	0
Meath	0	0	0	0	1
Monaghan	0	0	0	0	0
Offaly	0	0	1	0	0
Roscommon	0	0	0	0	0
Sligo	1	0	0	1	0
Tipp North	0	0	0	0	0
Tipp South	0	0	1	0	0
Westmeath	2	0	3	1	1
Waterford	1	0	0	0	1
Wicklow	0	0	0	0	0

Arthur Morgan

Ceist:

1693 Deputy Arthur Morgan asked the Minister for Enterprise, Trade and Innovation the areas that have been most affected by the withdrawal of foreign direct investment in each of the past ten years, in terms of job losses and by county; and if he will make a statement on the matter. [31940/10]

Minister for Enterprise, Trade and Innovation (Deputy Batt O’Keeffe)

The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the industrial development agencies. Data is compiled on an annualised basis and is aggregated at county level. The number of jobs lost in IDA supported companies, on a county by county basis, in each of the past 10 years is set out in the attached tabular statement.

Each year an average of 7-8% of jobs within the IDA portfolio are lost as part of the normal business lifecycle. The reasons for this include competitiveness, market downturn, global economic trends and business model re-structuring, particularly as a result of merger and acquisition activity. However in 2009, in addition to the normal level of job losses, many IDA client companies announced significant reductions in their global workforces. Ireland was not immune to these changes with net employment within IDA supported companies falling by 13,400 or c.10% from the previous year. In excess of 3,500 of these job losses resulted from two high profile companies which included 1,900 losses in Dell, Limerick and approximately 1,300 at SR Technics in Dublin. It is also noteworthy that 82% of job losses were as a result of downsizing, not closures. Maintaining a large number of existing multinationals here will help position Ireland as a competitive location when the global economy recovers from 2010 onwards.

While it is clear that we are operating in a very difficult economic environment, there are still investment opportunities in global markets and IDA will continue to compete vigorously for projects for Ireland. Indeed IDA's performance for the first half of 2010 has been very encouraging and the Agency is on track to achieve ambitious Foreign Direct Investment (FDI) targets set out for 2010. Up to mid July 2010, IDA already secure 63 new investments, of which 20 were from companies setting up operations in Ireland for the first time, 22 were expansion investments from existing client companies and 21 of the investments were in Research and Development. A number of key trends are driving the current success in FDI in Ireland including the growth in the US technology sector, growing trends in Cleantech, an improvement in Ireland's competitiveness, currency movements and an overall global recovery in FDI.

Table showing the number of job losses in IDA supported companies on a county by county basis in each of the past 10 years

County	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009
Carlow	56	24	49	49	277	33	110	262	28	75
Cavan	34	59	42	76	64	127	63	2	26	56
Clare	56	142	203	43	22	34	52	35	16	93
Cork	685	1,810	2,057	1,318	785	796	1,159	1,692	1,488	2,432
Donegal	341	518	123	496	217	357	644	116	48	29
Dublin	3,140	8,214	5,717	5,242	4,936	4,169	2,374	4,098	4,196	6,805
Galway	368	837	1,294	650	482	193	563	619	764	1,178
Kerry	87	57	651	321	284	232	161	47	108	416
Kildare	62	849	581	471	408	148	439	717	584	1,491
Kilkenny	128	50	15	98	4	9	20	53	9	112
Laois	34	59	43	17	85	2	48	43	20	16
Leitrim	73	2	19	5	28	187	117	50	43	30
Limerick	457	1,044	1,583	633	605	135	256	452	694	2,519
Longford	123	30	49	5	36	30	20	79	88	74
Louth	759	1,305	276	410	117	128	287	172	433	272
Mayo	121	228	469	137	400	243	102	83	126	189
Meath	106	124	140	95	29	14	399	41	83	159
Monaghan	20	18	31	146	40	11	3	16	14	14
Offaly	364	441	230	108	46	20	75	91	47	118
Roscommon	4	22	142	141	36	11	15	30	1	89
Sligo	157	226	80	265	181	117	149	255	64	137
Tipp North	52	116	494	278	4	83	48	100	46	188
Tipp South	25	39	36	267	32	58	130	15	26	93
Waterford	636	233	300	224	423	579	350	183	483	569
Westmeath	116	171	178	719	254	66	312	245	264	527
Wexford	131	272	98	180	151	38	50	59	73	89
Wicklow	284	574	242	56	453	1,097	293	68	296	258
TOTAL IDA	8,419	17,464	15,142	12,450	10,399	8,917	8,239	9,623	10,068	18,028

Arthur Morgan

Ceist:

1694 Deputy Arthur Morgan asked the Minister for Enterprise, Trade and Innovation the figures for foreign direct investment here for each of the past ten years; the figures for investments won and lost by the Industrial Development Agency in this ten year period; and if he will make a statement on the matter. [31941/10]

Minister for Enterprise, Trade and Innovation (Deputy Batt O’Keeffe)

Foreign direct investment has been a major contributor to Ireland's development in the past 50 years. Nearly a quarter of a million quality Irish jobs exist today because of our long term commitment to make Ireland a location of choice for multinational companies. At present there are 980 IDA supported multinational companies established here. These companies account for 70% of total exports (€110bn) and are responsible for €19.1bn in direct expenditure within the Irish economy and account for 55% of the total corporate tax take.

Over the past 10 years since 2000, the number of foreign direct investments approved annually has risen from 96 in 2000 to an all time high of 130 in 2008. In 2009, that figure dropped back to 125, a drop of 4%, whereas FDI globally dropped by 30%. Research, Development and Innovation plays a significant role in building Ireland's "Smart Economy". RDI projects now account for almost 50% of all FDI investments. In the past 3 years alone (2007 to 2009), IDA has secured investments with total future capital of €5 billion plus €1.2bn in R&D.

Table 1 sets out the number of foreign investments secured annually in each of the years 2000 to 2009.

Every year an average of 7-8% of jobs within the IDA portfolio are lost as part of the normal business lifecycle. The reasons for this include competitiveness, market downturn, global economic trends and business model re-structuring, particularly as a result of merger and acquisition activity. In the 10 year period 2000 to 2009 a total of 462 IDA supported companies closed with resulting job losses.

Table 2 shows the number of closures together with the subsequent job losses in each year 2000 to 2009.

Table 1: showing the number of foreign investments secured annually by IDA in each of the years 2000 to 2009.

DATA	Type	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009
No. of Projects App’d	Greenfield	64	26	31	33	37	41	39	30	35	39
No. of Projects App’d	Expansion	32	14	24	31	33	30	32	39	39	24
No. of Projects App’d	RD&I				39	36	50	54	45	56	62
No. of Projects App’d	TOTAL	96	40	55	103	106	121	125	114	130	125

Table 2: showing the number of closures in IDA supported companies in together with the number of job losses in each year 2000 to 2009

Year	Number of Closures	Perm Employmentat Year of Closure
2000	44	2,860
2001	63	6,954
2002	56	3,448
2003	40	2,964
2004	50	2,395
2005	29	1,687
2006	46	1,759
2007	42	2,173
2008	40	1,779
2009	52	2,950