Mr. Seamus McCarthy:

Thank you, Chairman. The primary role of IDA Ireland is to attract foreign direct investment to Ireland. It does this by promoting Ireland as an attractive location to potential investors through the payment of grant aid and through the development of industrial property which is readily available for use by potential investors. The IDA received State grants of around €155 million in 2016, representing 92% of the agency's total income for the year. Its other income streams amounted to €14 million and included profits on the disposal of assets, grant refunds and rental income.

The IDA’s gross expenditure in 2016 amounted to €160 million, including €95.6 million in grants to enterprises in support of research and development activity, capital investment, employment and training; €42 million spent on pay, pensions and administration; €12.5 million on expenses related to the property portfolio and depreciation charges; and €10 million on promotion activities. In addition to its recurrent expenditure, the IDA expended €15.4 million on property additions, including land purchases, site development and construction work on its property holdings. At the end of 2016, the IDA’s property portfolio had a net book value of approximately €152 million.

The IDA revalues property based on reviews carried out internally or by independent valuers, as appropriate, where there are indications that the carrying amount may not be recoverable. Following the 2016 review, the IDA reversed part of the impairment charges on its property portfolio which had been recognised over the period 2008 to 2013. The impairment charges reflected the effects of the downturn in the property market over that period and the reversal of the impairment charges, valued at €36 million, reflects a general uplift in property values.

The financial statement for 2016 received an unqualified opinion.