Bernard Durkan (Kildare North, Fine Gael)
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60. To ask the Minister for Enterprise, Trade and Employment the extent to which he and his office continue to attract employment-generating and trade-benefiting enterprises to this country via foreign direct investment or indigenously; and if he will make a statement on the matter. [22066/23]

Bernard Durkan (Kildare North, Fine Gael)
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This question seeks to ascertain the extent to which this country remains an attractive investment location for foreign direct investment and for the indigenous sector.

Simon Coveney (Cork South Central, Fine Gael)
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In spite of challenging headwinds for the global economy in recent years, including the far-reaching impacts of Brexit, the pandemic and the war in Ukraine, Ireland has continued to perform extremely well in both employment and trade. Reaching 2.57 million in quarter 4 of last year, we now have more people employed than ever before. Female participation in the workplace is at an all-time high and youth unemployment remains low. Irish trade continues to perform well, with goods exports totalling €16.5 billion in February 2023, an increase of 4% compared with the previous year.

The numbers of persons directly employed by IDA Ireland multinational clients in Ireland in 2022 reached 301,475, the highest FDI employment level ever, and a 9% increase on 2021. A total of 19,660 new jobs were created at Enterprise Ireland companies last year, with employment at 218,000 across all supported firms. Exports from Enterprise Ireland companies grew by 19% last year, the highest ever level of growth for Enterprise Ireland-backed companies in terms of export value.

The White Paper on enterprise published in December last year outlines the Government’s approach to enterprise policy for the period to 2030. It details how we will deliver on our ambition of a vibrant, resilient, regionally balanced and sustainable economy made up of a diversified mix of leading global companies, internationally competitive Irish enterprises and thriving local businesses. The White Paper seeks to ensure Ireland’s enterprise policy is oriented to protect Ireland’s strong economic position and respond to emerging challenges and opportunities arising from digitalisation, global economic and geopolitical developments, and the urgent need to decarbonise the economy. We are making a big step forward on that today with the announcement of the results of the first big offshore wind auction.

Bernard Durkan (Kildare North, Fine Gael)
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I thank the Minister for his detailed, satisfactory and positive reply. To what extent are the manufacturing and service sectors represented in the ongoing development of employment in this country, having particular regard to woes relating to the possible reduction in taxation from that sector at some point in the future? We know that there may be fluctuations; we do not know the extent. However, we need to know to what extent we are preparing for any movement that might not be positive in either the FDI sector or the indigenous sector. To what extent do we continually monitor matters in this regard?

Simon Coveney (Cork South Central, Fine Gael)
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Later this month I will bring the first implementation plan for the new enterprise strategy to Government for approval. That will focus on the kinds of things the Deputy raised which is ensuring that our enterprise strategy delivers balance across multiple sectors, including food, agrifood, construction, the tech sector, medical devices, the pharmaceutical sector and manufacturing.

The Irish economy is probably more balanced than it has ever been in terms of the spread of employment opportunities for people. That said, we have this extraordinary revenue stream coming from corporation tax receipts. A big part of that comes from the ten largest multinationals in Ireland. While that tax revenue is very welcome and we will put it to work - we will outline how we do that in the next budget - we also need to caution against spending money that may not be consistent income in the medium to long term. That is a balancing act the Government needs to get right. The overall message is that the economy and enterprise in Ireland have never been stronger or more balanced.

Bernard Durkan (Kildare North, Fine Gael)
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I agree entirely with the need for balance and the need to provide for eventualities such as an international recession or sudden financial movements on the world stage which could impact in one way or another on all these issues. To what extent has careful consideration been given to the progress in each of the areas, with particular reference to the top ten taxpayers? In the event of an unforeseen reduction in taxation from that quarter, have we put in place particular measures to replace a potential loss of revenue from there?

Simon Coveney (Cork South Central, Fine Gael)
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The Government has already acted to put a reserve fund in place. We have contributed to that for some years. The Government will ensure that we do not make the mistakes made in the past of relying on a revenue stream that turns out not to be consistent over time. We will ensure that we invest for the future but there are also many pressures on families today and we also need to respond to that. The Deputy saw that in last year's budget. Since then, we have spent almost €12 billion supporting families and businesses across Ireland through the extraordinary pressures of cost increases that we have seen over the last 18 months or so. This is about using money well and ensuring that we plan for the future. We know we will face future shocks especially when we consider the last seven years. Very few people predicted the Brexit result. Certainly, nobody predicted an international pandemic. Very few people predicted the brutality that we are seeing in the war in Ukraine right now with its impact on the economy. We need to plan for uncertainty in the future but that is exactly what we are trying to do.