Dáil Éireann Debate, Tuesday - 2 November 2021
56. Deputy Peadar Tóibín asked the Tánaiste and Minister for Enterprise, Trade and Employment his views on the reported 59% fall in foreign investment in 2020 to €28 billion; and the response his Department has taken to reverse this decrease. [52010/21]
Amharc ar fhreagraI note that the Deputy is referring to a report from MoneyTransfers.com, published last August. The report is based on OECD data on foreign direct investment inflows. However, the figure referred to by the Deputy includes the movement of finances within companies and so it does not accurately reflect FDI flows which have an impact on the economy. For this reason, IDA Ireland’s success in attracting meaningful FDI is measured by the number of greenfield investments it wins and the jobs created through those investments.
There is positive evidence of Ireland’s continued attractiveness as a destination for FDI, and investors’ confidence in Ireland remains strong, as evidenced by the flow of investment projects over recent months and years. In 2020, IDA Ireland won 246 investments and the number of people directly employed in the multinational sector in Ireland grew to 257,394. The pipeline of investment in the year-to-date has been extraordinarily strong considering the continued uncertainty in the global operating environment. IDA Ireland’s mid-year results for 2021 show 142 investments won to the end of Q2, 62 of which were new name investments. These investments provide employment potential of over 12,500 jobs, close to the record levels of 2019. It is also encouraging to see that during the first half of 2021 investment continued to be spread across the country with 68 regional investments, amounting to 48% of the total investments.
Despite these very positive results there are challenges ahead including trade protectionism, Brexit, the increasingly competitive global market for FDI and the need to keep pace with digitalisation, disruptive technology, new business models and the future of work. To maintain and enhance Ireland’s competitiveness and reputation as a good place to do businesses, my Department will work across Government and with IDA Ireland to improve Ireland’s value proposition. My Department will continue to support IDA Ireland to partner with multinational companies to drive economic recovery and sustainable growth in the coming years. IDA Ireland’s strategy, Driving Recovery and Sustainable Growth, launched in January this year, is an ambitious but pragmatic strategy for 2021-2024. This Strategy aims to ensure that FDI can make a significant contribution to the recovery and future growth of the economy. A formal review of this strategy at its half-way point next year will enable IDA Ireland to make any necessary adjustments as the economic outlook and risks for future years become clearer.
