John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I thank Deputy Tom Hayes for raising this important issue.

IDA Ireland's primary responsibility is to attract foreign direct investment, FDI, to Ireland and to grow and expand FDI companies in Ireland in the face of strong international competition. In accordance with its strategy, Horizon 2020, which covers the period 2010 to 2014, IDA Ireland is working to create 62,000 direct jobs in 640 investment projects over the period, resulting in an additional 105,000 jobs overall in the economy, with 50% of investments being located in areas outside of Dublin and Cork. The strategy also confirms that IDA Ireland will continue to work with its existing client companies in Ireland to transform the existing FDI base to develop, retain and grow employment in these companies.

IDA Ireland has assured me that it continues to work with all its client companies in Tipperary and across the country to ensure their long-term sustainability and encourage their growth and development, the broadening of their mandates and the continuing re-investment in their sites. There are 12 IDA Ireland client companies in the whole of County Tipperary, employing almost 3,700 people on a permanent basis.

The global economy, in particular the European economy, which is the primary target market for FDI clients in Ireland, is in a low growth phase. The challenge for IDA Ireland is to win FDI in this low growth environment. As Ireland competes for investments at the highest end of the value chain, the concept of scale is crucial. Leading corporations require a significant population of highly qualified talent, effective physical and digital infrastructure coupled with the availability of sophisticated professional support services. To best address this challenge, IDA Ireland prioritises the marketing of gateway locations within each region as the locations of critical mass, that is, sufficient scale of population, skills, infrastructure, companies, business services, etc. and highlights the opportunities provided by hub locations which are within commuting distances of these gateways. In addition, IDA Ireland promotes other locations as part of its marketing efforts and in response to specific client requirements. With continuing enhancement and improvements in physical and digital infrastructure, an FDI project secured for one gateway economic region has a positive impact on other gateway economic regions and surrounding areas.

Because Tipperary is divided into two administrative regions, Tipperary North is part of IDA Ireland's mid-west region along with counties Clare and Limerick, while Tipperary South is part of IDA Ireland's south-east region, along with Waterford, Wexford, Carlow and Kilkenny.

In addition, the provision of flexible and cost-effective property solutions has been a key aspect in developing differentiating regional value propositions and attracting FDI into regional economic locations. For example, in Tipperary, the availability of the 300 acre park at Clonmel business park could facilitate the creation of investment and employment opportunities from FDI and from projects supported by Enterprise Ireland, EI.

Strong performance was seen in 2011 in the level of FDI won by Ireland. IDA Ireland client companies created more than 13,000 new jobs in 2011, despite the current global economic situation and a strong increase in international competition. This strong performance has continued into 2012 and, to date, there have been 81 IDA announcements with the potential to create in the region of 8,550 jobs.

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