Bernard Durkan (Kildare North, Fine Gael)
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8. To ask the Minister for Jobs, Enterprise and Innovation the extent to which he expects this country to remain equally attractive for foreign direct investment and indigenous job creation, having particular regard to the provisions made in budget 2016, and the potential of the Irish knowledge development box, or any other issues in the wake of changes to the 12.5% corporation tax; and if he will make a statement on the matter. [37937/15]

Bernard Durkan (Kildare North, Fine Gael)
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This question purports to highlight the need for this country to remain attractive as a location for foreign direct investment and for the encouragement of the indigenous job creation sector in what is becoming a very competitive market.

Richard Bruton (Dublin North Central, Fine Gael)
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Budget 2016 and the entire Action Plan for Jobs process have been designed to achieve balanced and sustainable growth across sectors, spanning both Irish-owned and foreign-owned enterprises. The recovery in jobs and exports to date is in large part due to the considerable improvements in the business environment for enterprise that have taken place in recent years. The measures announced by the Minister for Finance in budget 2016 last month have further strengthened the attractiveness of Ireland as a place for innovation, entrepreneurship and investment, delivering sustainable job creation and growth. A competitive and innovative enterprise base is at the core of Ireland's future economic development and Government policies for enterprise and innovation set the framework for continued investment and growth.

Ireland is the first country in the world to introduce an OECD-compliant knowledge development box, KDB, offering certainty to global and Irish-owned enterprises. The OECD approach sets out the principles and guidelines under which income arising from intellectual property assets can qualify for a lower rate of tax under a knowledge development box initiative. Ireland's KDB rate is 6.25% - half of the corporation tax rate - and is internationally competitive. It is important to note that there have been no changes to the headline corporation tax rate of 12.5%.

The knowledge box, as outlined by the Minister for Finance, will support and encourage both foreign and Irish-owned enterprise to undertake research and development here, to protect the intellectual property that arises and to benefit from the measure.

The Finance Bill also allows for the introduction of a provision pertaining to companies with income arising from intellectual property of less than €7,500,000, which will be introduced during 2016, when the necessary legislation to give it effect is enacted, and will be of direct benefit to companies of a relatively lower scale, with global income of less than €50 million.

Bernard Durkan (Kildare North, Fine Gael)
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I thank the Minister for his comprehensive reply. Does he remain satisfied that indigenously grown companies have available to them sufficient incentives to ensure they can grow alongside the foreign direct investment sector and can compete equally well in the international marketplace?

Richard Bruton (Dublin North Central, Fine Gael)
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Over two thirds of the budget I expend goes to Irish companies as opposed to foreign companies. Last year, for the first time in many years, the net job growth from Irish-owned companies supported by Enterprise Ireland exceeded that of the IDA, so that was significant progress. There is no doubt we are seeing the emergence of what Germany would call Mittelstand companies - strong, globally competitive companies, many of them in engineering, food or agri-tech. These companies are showing great resilience and capacity to grow. We have a balanced growth among the Irish companies, which are very strong in software and technology, but also strong in traditional sectors like food, agri-tech and engineering. I believe we have good prospects and we have a strong flow of entrepreneurship from Irish companies, which is encouraging for the future.

Bernard Durkan (Kildare North, Fine Gael)
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Have particular issues been brought to the Minister's attention, either by foreign direct investment companies or by indigenous companies, with regard to their future growth and the issues that might come across their radar when considering further investment?

Richard Bruton (Dublin North Central, Fine Gael)
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The issue that comes up time and again is that of skills. There is no doubt that as digitisation, or whatever we want to call it, transforms virtually every sector, there is an increasing focus on a narrow range of skills. We need to up our capability across a whole range of skills. I am very encouraged by the new apprenticeship programme, where 86 employer partnerships applied to create new apprenticeships in areas where we have never had them before. That is an encouraging sign that business is willing to invest, in partnership with the State, to grow the skills base in new areas. That is the biggest issue. As they describe it, the war for talent is very strong among companies.