Oireachtas Joint and Select Committees

Wednesday, 6 May 2015

Joint Oireachtas Committee on Foreign Affairs and Trade

Developing Growth Markets: IDA Ireland

10:00 am

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein) | Oireachtas source

Our queries stem from the same background of last week's meeting when we had a discussion with the Irish Exporters Association. We gained a lot of information from the encounter.

I wish to commence by congratulating the authority on the outstanding work it has done. I note from its report that it had set a target of achieving 4% of new investments in Ireland, or companies investing in Ireland for the first time, to come from so-called growth markets. The authority has excelled itself by achieving 20% of new investments which indicates its professional approach. Such success gives people much desired glimmers of hope that the economy is improving. What attracts many of those new companies to invest? Deputy Smith asked a similar question. US companies have told us that they are attracted by a corporation tax of 12.5% and the rate can be lower in a lot of cases. Other people have spoken in terms of the quality of life, security, accommodation, schools, transport, public services, libraries, theatres and so on which is another package that the authority can sell to people.

Although we have been successful there has been criticism that many of the new jobs are on the east coast and around Dublin. Is it more difficult, as one moves away from the major cities, to secure investment because certain regions lack particular services? Growing public services, community services and cultural organisations will not only benefit Irish society but will also help attract foreign investment.

This is not just for the benefit of Irish society. That is the link. How important is this? Does the IDA have a structured input in terms of what is lacking in an area?

Last week, I asked about the importance of the hotels and other accommodation provided for people from different cultural backgrounds whom the IDA brings to Ireland for the first time, that is, whether they are knowledgeable about those people's cultural norms when, for example, asking whether they would like a drink, pork or bacon. These are simple matters. Do we have specialist hotels? Does this form part of the IDA's preparations when bringing people to Ireland?

In terms of new name investments from growth markets, particularly non-English speaking countries in Asia, is the approach taken to incentives the same as it is for the North American market? How important is the continuity of the 12.5% effective tax rate when selling Ireland to companies?

Hundreds of growth markets clients are operating in Ireland and employ 9,500 people across the State. Do they bring many workers with them from their own countries? I asked the exporters about difficulties with visas and so on. Is the IDA's co-ordination of this issue seamless or are there difficulties?

I can see the successes, but what are we getting wrong? I assume that our committee's role is to make recommendations. What could be done better? Last week, the closure of a university's language course was mentioned. Does this issue arise on the IDA's agenda? How does it feed into the Department?

The all-Ireland economy was mentioned. What co-operation does the IDA have with its counterpart in the North? We sell Ireland on an all-Ireland basis. Many of our trade missions are all-Ireland. When planning investments, do companies raise issues about the Border? This and the European committees are discussing the possibility of Britain withdrawing from the EU. How important a factor is that? Will difficulties arise if there is a Conservative Government in Britain?

Are there structures for returning immigrants? The exporters stated that they worked closely with chambers of commerce, but is a separate structure required in those countries? Chambers of commerce attract a particular type of individual, but I am more concerned about people who attended language schools, worked or were educated in Ireland before returning to their own countries. Is it important that we use their good will? What of creating initiatives for former emigrants in Ireland who worked in the emerging Asian markets and so on? The exporters stated that there was a great deal of good will. A meeting could be pulled together. As we grow more successful, this will take off, but is such work being done in those countries? It is probably more difficult to do in Ireland. Is there a role for such structures?

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