Micheál Martin (Cork South Central, Fianna Fail)

The Forfás annual employment survey shows that in five-year period from 2003 to 2007 the net gain in the numbers of new jobs created in IDA supported companies amounted to 4,623. This relatively small net gain masks the fact that there has been a considerable churn in employment in client companies.

The significance of foreign direct investment to Ireland's current economic prosperity and future growth should not be underestimated. The level of FDI in Ireland, relative to the size of the economy, is one of the highest in the world. Today employment in IDA companies directly accounts for over 136,000 jobs or 42% of industrial and financial employment in the economy. The average salary in IDA supported companies in 2007 was almost €44,000, or 19% above the average industrial wage of €36,800. This reflects the higher skills of the new positions being created by these investments. IDA supported companies paid an estimated €3 billion in corporate tax in 2007. They also accounted for approximately 85% of manufacturing company's exports. They accounted for €15.87 billion in direct expenditure within the economy, comprised of €6.73 billion on payroll, €5.71 billion on services and €3.43 billion on Irish materials. These investments have also generated significant indirect employment in indigenous sub supply and service companies.

The impact of FDI in Ireland goes much deeper than job creation and financial contribution to the economy, the positive impact is visible in may key aspects of Irish life. Foreign-owned companies are at the cutting edge of demand for high skills, advanced management training and of business process, which permeates the wider business community. These companies are leading contributors to national research and innovation agenda through substantial capital and intellectual investment in company owned research facilities and in widespread collaboration with third level institutions and dedicated research institutions. Through their success they have contributed to the broadening of the economic base in Ireland by linking to and fostering entrepreneurial activities and indigenous start-ups aimed at supporting and selling to foreign owned companies.

I am satisfied that the expenditure incurred by IDA in attracting new inward investment represents significant value for money and an excellent return on investment for the State.

While neither IDA Ireland nor I make forecasts as to the number of jobs to be created in any one year I am satisfied that the agency has a healthy pipeline of prospective new projects in place and, given the successes of the agency in previous years, I share their confidence that Ireland is well placed to secure significant investment for 2008 and the years ahead.

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