Dáil Éireann Debate, Thursday - 8 September 2022
7. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of companies supported by IDA Ireland, by country of origin, in tabular form; his views on whether there is an overreliance on any one country; if so, the measures he is taking to reduce this overreliance through broadening the base of companies supported by the IDA; and if he will make a statement on the matter. [42447/22]
Amharc ar fhreagraIDA Ireland launched their 2021 Annual Report in July, confirming the announcements made in December last that 2021 was a record-breaking year for FDI employment with significantly higher levels of Foreign Direct Investment (FDI) in 2021 compared with 2020.
The 2022 mid-year results, also announced in July, reported significant investment growth in the first half of 2022, returning FDI employment creation plans to above the pre-pandemic 2019 record levels, despite a continuing challenging global environment.
The origin of IDA Ireland supported companies in 2021 is shown below.
|
Origin |
No. of Companies |
|
United States |
893 |
|
Germany |
96 |
|
United Kingdom |
161 |
|
France |
78 |
|
Rest of Europe |
196 |
|
Rest of World |
267 |
|
Total |
1,691 |
Source: DETE Annual Employment Survey 2021. Note: Includes full-time and part-time employees.
To support the resiliency and dynamism of FDI in Ireland, the IDA is building upon the progress made under previous strategies to diversify its source markets for investment. The United States, as the world’s largest economy and innovation leader, continues to be a key market as IDA Ireland targets job creating investment opportunities arising from disruptive innovation, digital transformation and environmental sustainability.
IDA Ireland continues to monitor opportunities arising from Brexit, as well as the increased focus on resilience and business continuity, in winning investment from Europe, the UK, and Asia-Pacific. The Agency aims to capitalise on expansion potential from new name Brexit investments secured since 2016 as these companies build out their Irish operations. IDA Ireland will also continue to seek to win new name investments from companies who would previously have chosen the UK as their European base.
IDA Ireland's Growth Markets team is also aiming to grow the base of clients from Asia-Pacific in Ireland, building upon the strategic projects secured in recent years and on the international ambitions of target clients. In addition, the Agency continues to build awareness of Ireland’s value proposition in locations with significant potential as FDI source markets with a particular focus on South Africa, Brazil, Israel and UAE.
Since 2010, IDA Ireland’s successive strategies have focussed on market diversification which is reflected by the levels of investment from the US falling from 70% in 2014 strategy to 64% of investment in the 2019 strategy. This progress was achieved notwithstanding investment from the US growing, but investment from other parts of the world growing at a faster rate.
Ireland’s value proposition for FDI is strong and our business environment is supporting cutting edge, innovative investment. We have an enviable FDI platform which, combined with a dynamic indigenous base, can drive sustainable growth and create opportunities for all.
The Government is aware of the concentration risks arising from a reliance on multinational firms within the State. However, we must acknowledge the valuable role played by indigenous firms and their part in the enterprise ecosystem. SMEs account for over 98% of businesses in Ireland, therefore it is vital that we extend support in a way that allows these firms to expand and make significant contributions to the exchequer.
It is important to remember that FDI plays a role in the success of indigenous companies. The impact of FDI companies nationally and regionally to public finances, regional development, global value chain integration, spin-off indigenous enterprise, innovation and more can be clearly seen in their expenditure in the Irish economy.
