Dáil Éireann Debate, Thursday - 19 May 2022
203. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which he and his Department continues to monitor foreign direct investment here, with particular reference to any impact arising from international corporate tax changes; and if he will make a statement on the matter. [25624/22]
Amharc ar fhreagraIDA Ireland is responsible for the attraction and retention of foreign direct investment in Ireland. IDA Ireland’s performance is mainly measured by the number of greenfield investments it wins and the jobs created. The Department of Enterprise, Trade and Employment continues to work alongside IDA Ireland to support the agency’s performance and to monitor the level of inward investment in Ireland.
IDA Ireland’s end year results for 2021 demonstrate a strong flow of FDI into Ireland, with 249 investments won last year. Growth in regions was particularly notable with 134 of the 249 investments won, i.e. 54%, going to regional locations, with employment growth recorded in every region of the country. Additionally, the number of people directly employed in the multinational sector in Ireland reached 275,384 in 2021. This is the highest level of FDI employment ever reached in Ireland. These investment decisions were taken not only within the context of the OECD International Tax negotiations and agreement, but also during an uncertain international environment due to both Brexit and the COVID-19 pandemic. These results are positive evidence of Ireland’s continued attractiveness as a destination for companies seeking to invest.
Ireland will continue to remain an attractive location for FDI in the future despite the international corporation tax change. Ireland’s signing of the OECD International Tax agreement in July 2021 provided clarity, a long-term view and the assurance of enduring stability and certainty to prospective and current multinational companies investing in Ireland. Furthermore, the corporation tax change will affect a small number of larger companies, however, for the overwhelming majority of enterprises in Ireland, the effect will be nil.
The corporation tax rate is only one element of Ireland’s value proposition to multinational companies. Companies which decide to invest in Ireland also reap the benefits of a young and highly educated workforce, a business-friendly environment, a stable economic and political environment, Ireland’s clear commitment to European Union membership and access to the single market.
