Dáil Éireann Debate, Wednesday - 13 May 2015
17. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he remains satisfied regarding the competitiveness of this economy to attract foreign direct investment, while supporting and encouraging the indigenous sector in both manufacturing and services; and if he will make a statement on the matter. [18343/15]
Amharc ar fhreagraA key objective of the Action Plan for Jobs process which this Government commenced in 2012 was to rebuild our competitiveness and provide a solid foundation for future growth. The recovery in jobs and exports to date is in large part due to the considerable improvement in competitiveness that has taken place in recent years. Prices and labour costs have grown less in Ireland than in our trading partners. Combined with the recent depreciation of the euro, this has seen Irish competitiveness – as measured by the real effective exchange rate - recover most of the deterioration recorded during the boom years.
Our improved competitiveness is reflected in our international rankings also. Since 2011, Ireland’s rankings in both the IMD and WEF competitiveness reports has improved – from 24th to 15th in the IMD’s World Competitiveness Yearbook, and from 29th to 25th in the WEF Global Competitiveness Report. In the World Bank’s Doing Business 2015 report, Ireland is ranked 13th out of 189.
As noted in the Government’s Spring Economic Statement, this recovery in competitiveness has facilitated a reallocation of resources towards the tradable sectors of the economy. Exports are now at an all-time high and total employment in IDA supported client companies grew to 174,000 in 2014 from a low of 145,000 in 2009.
Enterprise Ireland reported that client companies created 19,705 new jobs in 2014 – a net increase of 8,476. This is the highest net gain in the history of the agency and demonstrates clearly the direct impact that increasing exports has on jobs in Ireland. Enterprise Ireland supported companies no, account for total direct employment of 180,000 people - the highest recorded in the history of the agency. Significantly, EI clients recorded the lowest level of job losses since 2000.
These successes are spread across manufacturing, services and R&D activities.
