John Carty (Fianna Fail)

I thank the Minister of State, Deputy Michael Ahern, for coming to the House to outline the economic progress Ireland has made, and will continue to make over the years to come, as a result of strong Government support for competitiveness. Over the years, one of the IDA's strengths has been its ability to adapt its policies and strategies constantly and rapidly to meet the needs of the Irish economy. It has taken advantage of the opportunities in the marketplace for foreign direct investment. By identifying emerging new sectors with potential for inward investment, the IDA has generally stayed well ahead of its competitors. It has successfully targeted niche areas of business in which Ireland can offer a competitive advantage. Ireland has changed dramatically over the past decade. The IDA has worked to meet the expectations of a society that is enjoying full employment and is aspiring to a standard and quality of life the equal of any other society in the world. It has moved substantially more of its people and resources into the north-west, midlands and south-east regions. It has established important operating units in Sligo, Athlone and Waterford, with the goal of helping such centres to develop as magnets for investment in their own right, rather than having investment pushed their way from Dublin.

The IDA works with local authorities and service providers to ensure that suitable infrastructure is in place to support an increase in regional development, based around the regional economic centres. As part of its broader role in the Ireland of the future, the IDA helps to ensure that requisite skills and research capabilities are in place. It links Irish research institutes and global businesses with international research centres. The IDA markets overseas the exciting new research facilities that are evolving throughout the country. Most investment has traditionally been made in manufacturing businesses which have been attracted to Ireland by its competitive advantages over its EU neighbours, such as its low costs. Such activity will remain a fundamental part of Ireland's development programme. More recently, however, the investment sought by the IDA has been increasingly based on innovation and research — knowledge-intensive projects that require high skills and expertise.

Recent unprecedented advances in science and technology have meant that our economic growth and development are being increasingly based on information and knowledge. In general, the two main forces that drive foreign investment are the globalisation of business and the dramatic evolution of the knowledge-based economy. In this new world, which is dominated by businesses and based on innovation, research and the use of information, investment is attracted less by asset-related financial incentives than by a conducive and efficient operating environment.

The IDA has taken a broader role in ensuring that world-class skills and infrastructure are in place to keep Ireland competitive. As innovation and research continue to globalise rapidly, developed economies are trying to devise strategies to foster and retain the research activities of their indigenous companies and to attract new facilities. Innovation and research and development are major components of the IDA's well-established programme of helping existing client companies to establish higher-order and higher-value functions with their Irish subsidiaries. On the basis of the premise that such companies must continually grow and develop if they are to remain competitive, the IDA encourages and fully supports local management in securing from the parent corporation the widest possible range of strategic activities. Many companies have developed far beyond their initial proposals and have added higher value functions such as research and development, technical support, software development, e-business, customer support, logistics and shared services. The success of the IDA in attracting international investment is to be commended. The dedication and professionalism of its staff has contributed to its success and on which they are to be congratulated.

I ask IDA to place an emphasis on securing investment in the more remote regions, especially in small towns in the west.