Oireachtas Joint and Select Committees

Wednesday, 26 January 2022

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Strategy, Targets, Achievements and Future Progress: IDA Ireland

Mr. Martin Shanahan:

I thank the Deputy. First, Amazon, and Amazon Web Services, AWS, in particular, are huge investors in Ireland and provide significant employment. Second, we have to be somewhat realistic in respect of where the world is going and the business models that will be deployed. One of those business models is the ability to operate, purchase and sell online. If ever there was evidence needed that that is the direction of travel, we have probably observed it over the past two years. Whether we like it or not, it is going to be a fact of life going forward. The large players, including Amazon, will be key players in this. If there are specific issues relating to a company, there are apparatus of the State to deal with those specific issues.

As regards the Deputy's question regarding our strategy of quantity over quality, it is clear we are attracting high-quality jobs. The evidence for that is probably in the fact that the wage levels in multinational companies, on average, are approximately one and a half times the annual industrial wage. Our strategy has been to target the sectors that underpin the modern economy - technology, pharmaceuticals, medical technologies, international financial services, engineering and food - and to attract the leading-edge activity within those companies, that is, research and development, innovation and high-value manufacturing. That is our strategy. Obviously, that is not to say that every job in multinational companies is at that level. That would be unrealistic. There are sectors that we are likely to transition out of because that activity may not happen in Ireland in the future. All of these companies bring with them jobs at all levels, particularly in the context of support jobs. To be clear, our strategy is to attract high-value and well-paid employment with good terms and conditions. There should be no doubt about that.