Dara Calleary (Mayo, Fianna Fail)
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1. To ask the Minister for Jobs, Enterprise and Innovation the way Industrial Development Agency, IDA, Ireland's presence can be enhanced in emerging economies, particularly Brazil, Russia, India and China; and if he will make a statement on the matter. [3089/14]

Dara Calleary (Mayo, Fianna Fail)
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Further to our discussion at the meeting of the Joint Committee on Jobs, Enterprise and Innovation on Tuesday on how we might increase the profile of IDA Ireland which does fantastic work, we need to increase its footprint in emerging markets. Are there plans in place to facilitate this, particularly in view of the economic importance of these markets and the job creation and investment potential to which they might give rise in the years to come?

Richard Bruton (Dublin North Central, Fine Gael)
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One of IDA Ireland's high level targets is that by the end of this year 20% of all greenfield investments will come from growth markets. To achieve this target, the Government provided IDA Ireland with the resources to establish offices and hire staff in emerging markets, including Brazil, India, Russia and China, the BRIC countries. In total, 17 people support the overseas marketing of Ireland for foreign direct investment in the growth markets area, with 11 staff working in the BRIC markets. In China IDA Ireland’s first office in Shanghai has been supplemented with new offices in Shenzhen and Beijing in partnership with the Department of Foreign Affairs and Trade. An ICT specialist has been appointed in Shenzhen and a financial services specialist in Beijing. The intensity of engagement between Ireland and China in recent years is evidenced by the number of memorandums of understanding, MOUs, signed in respect of areas of mutual interest. In India IDA Ireland established its first office in Mumbai and it has been complemented by a second office in Bangalore. An experienced IDA Ireland executive has been appointed to lead the team in India. Representative offices have been established in Brazil and Russia and are staffed by highly experienced local individuals. The overseas marketing staff are supported by a dedicated high level team in Dublin which works to attract investments specifically from these markets. This team includes two members of IDA Ireland's executive committee and one member of the management team.

The Government has supported this work by stepping up the number of trade missions to emerging markets. IDA Ireland also proposes that regular intensive marketing trips be made to the region by the global heads of its main operating divisions, including ICT, financial services, life sciences and content, consumer and business services. IDA Ireland also works in close co-operation with other Departments and State agencies, namely, the Departments of Foreign Affairs and Trade and Finance, Enterprise Ireland and the National Treasury Management Agency in these particular locations. I am glad to report that to date this strategy has resulted in 17 projects from the BRIC countries. Results indicate that IDA Ireland will achieve or exceed the target of 20% of all greenfield investments this year.

Dara Calleary (Mayo, Fianna Fail)
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IDA Ireland has five staff in China to deal with a market of 1.3 billion people, while it has 21 in the USA to cater for a market of 528 million. Given that the 21 in the USA are doing super work, imagine what could be done if an additional five staff were deployed in China. The key to doing business lies not in regular intensive visits but in maintaining a constant presence and building relationships. In the Asian markets, in particular, confidence is built on trust. As a result, there is a need to foster relationships and connections on a continual basis. In the context of the traditional markets, particularly pharmaceuticals, the figures for 2013 show that our exports were under considerable pressure. If we are to be where the action is happening in the next ten to 15 years, we must put in place the foundations now to allow us to establish the links necessary to do in the BRIC countries the work done in the USA in the 1960s, 1970s and 1980s in building relationships. Is IDA Ireland still subject to the recruitment embargo or does it have the capacity to employ new staff? What level of co-operation will there be in emerging markets between it and the new consulates which were announced earlier in the week and which we welcome?

Richard Bruton (Dublin North Central, Fine Gael)
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IDA Ireland has approached this challenge in a strategic way. As the Deputy is aware, a target was set for 2014 and resources have been allocated in such a way as to ensure it will be met. The strategy is under review and we will be looking afresh at growth markets. Clearly, there is a need to balance resources against outcomes and look to the long term. On a man for man basis, the emerging markets would not deliver the same return as the United States. IDA Ireland still attracts the bulk of its investments from North America. However, as the Deputy observes, we must anticipate where the growth markets are. That has been the approach.

The Department is bound by the employment control framework. During my term as Minister we have protected IDA Ireland staff within it. In other words, all other areas of the Department have taken the hit in order to protect IDA Ireland. We are looking to the future in the context of developing a new strategy. The Deputy is correct in stating there will be a need to increase the resources allocated for the markets to which he refers. We will try to identify creative ways in which this might be achieved.

Dara Calleary (Mayo, Fianna Fail)
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I welcome the Minister's reply and take the opportunity to pay tribute to Mr. Barry O'Leary who steps down from his position as CEO of IDA Ireland this year. I presume there are plans in place to recruit a new CEO to replace him. In setting targets for the new CEO will the Minister insist on the BRIC countries being placed at the front and centre in the context of his or her plans for the organisation in the coming years?

Richard Bruton (Dublin North Central, Fine Gael)
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As I stated when IDA Ireland launched its annual report, Mr. O'Leary's leadership of the organisation has been exceptional. He leaves behind a fantastic legacy of achievement and an organisation that is both professional and extremely strong. I recently appointed a new chairman of IDA Ireland and the process to recruit a replacement for Mr. O'Leary is getting under way.

I agree with the Deputy in that 90% of growth in trade will occur outside the European Union. That is the new reality. Much of this growth will occur in emerging markets. It is clear that we must build on the target for 2014 which I am sure IDA Ireland will be successful in delivering on. There is only one way in which the target can go, that is, upwards. Obviously, however, we must also ensure we match our resources with the opportunities that arise, both in the short and long term. That is the balance which must always be struck.