Dr. Martina Lawless:

One issue that has come up is the potential positive impact of movement of some foreign direct investment from the UK to Ireland to maintain access to the EU market. A number of issues could arise. IDA Ireland has always had a regional balance objective as part of its work in attracting FDI and in its negotiation with FDI companies. Given that we see the trade impact falling heavily on rural areas, perhaps these efforts need to be redoubled. Perhaps IDA Ireland needs to ensure that any additional FDI is reasonably balanced and to try to compensate areas that are hard-hit by the negative trade effects.

More generally, there are issues of capacity. Even in Dublin, there are issues with office space, residential space and broadband structure. If we were to go after a large increase in once-off FDI that might be relocating from the UK to Ireland, then it is important that the capacity is in place in terms of physical infrastructure and links with the university sector, a point to which Mr. McGrane has adverted. Other relevant factors include human capital or labour availability for FDI companies to maximise whatever potential gains exist for Ireland.

This applies to financial companies in particular but also to FDI companies more generally looking to move from the UK and perhaps those no longer considering the UK as a location. Some companies may be deciding to move somewhere else in Europe. We need to have Ireland at the forefront of alternative locations.

FDI companies coming from the United States may have been looking at the UK or Ireland as a location because of language, education and cultural similarities. Ireland is well placed to get a share of any relocated FDI, but it is important to continue all the Government policies that make Ireland an attractive location. Ireland has always had a disproportionate amount of FDI facilities relative to other European countries because of our business environment, language, education facilities and so on. It is important that we are not held back from taking the greatest possible advantage of the opportunities by not having the capacity in place in the areas where companies are considering relocation.