Ivor Callely (Dublin North Central, Fianna Fail)
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Question 91: To ask the Minister for Enterprise, Trade and Employment the success of the IDA policy in attracting direct foreign investment to Ireland over the past seven years; the benefits received from such policy; the policy areas that have been identified where reform is necessary; and if he will make a statement on the matter. [38016/06]

Micheál Martin (Cork South Central, Fianna Fail)
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IDA Ireland is the agency with statutory responsibility for the attraction of foreign direct investment (FDI) to Ireland and its regions. For a number of years now the Agency has been very successful in marketing Ireland to overseas investors and we continue to win a disproportionate share of available investments relative to our size and population.

The level of foreign direct investment (FDI) in Ireland, relative to the size of the economy, is one of the highest in the world. At the end of 2005 there were over 132,000 people employed in 1,010 IDA supported companies. These include many of the leading companies in information technology and communications, life sciences, international services, engineering and financial services.

The challenge for IDA Ireland now is to sustain, embed and grow these investments and to entice new investments. In responding to this challenge IDA Ireland is focusing on the development of its employment base into high technology, high value added and high skill functions, including not only high-end manufacturing, but also areas such as high-end services and R&D.

Ireland has re-invented its value proposition for inward investment over the past seven years, recognising changes in global conditions and in our own circumstances. Today's investments are characterised by their leading-edge nature, in terms of technology, such as in Amgen and Intel, or their market innovation, such as in eBay and Google. They are increasingly reliant on a highly skilled workforce. They require an agile, flexible and responsive operating environment.

Ireland has now established a reputation globally as a location for advanced manufacturing, sophisticated business services and, increasingly, for leading research and innovation. Each of these areas will be of critical importance to our continuing success.

In order to support this continued success, IDA Ireland has adopted a series of interlinked programmes of work, the main elements of which are as follows:

Concentrating more resources on helping to underpin the competitiveness of existing overseas companies in Ireland, by encouraging and supporting existing clients to move up the value chain into higher value products and services and into higher order functions, such as R&D;

Seeking out niches of business in which Ireland can carve out world market leadership;

Developing new networks and relationships to work towards developments in new areas such as strengthening links between business and third level institutions and other research centres with a view to increasing innovation;

Pursuing high quality new FDI that is in keeping with the competitive characteristics of the Irish economy today.

I am satisfied that the policies and strategies being pursued by IDA Ireland are the most appropriate ones to attract and grow foreign direct investment in the country which will, in turn, maintain and grow sustainable, quality employment into the future.