Bernard Durkan (Kildare North, Fine Gael)
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Question 195: To ask the Minister for Enterprise, Trade and Employment to indicate the extent to which overseas investment here is resulting in the creation of extra jobs in the past 12 months to date; the way this compares with similar periods over the past ten years; and if he will make a statement on the matter. [31659/07]

Micheál Martin (Cork South Central, Fianna Fail)
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Since the beginning of 2007 IDA Ireland has made 37 new project announcements with a potential job creation figure of in excess of 3,000.

It is necessary to distinguish between jobs announced and actual jobs created. There is always a timelag, often stretching over many years, between the announcement of jobs and their creation. The actual number of new jobs created in IDA supported companies in the calendar year 2007 will not be available until the Forfás Annual survey is published in early 2008. The actual number of new jobs created in IDA supported companies in each of the years from 1997 to 2006 is set out in the attached tabular statement.

The level of foreign direct investment (FDI) in Ireland, relative to the size of the economy, is one of the highest in the world, with many of the world's leading overseas companies having substantial international operations here. Some of these companies may have started with a manufacturing or basic services remit but have since taken on strategic activities such as next generation shared services, R&D, value-chain and supply-chain optimisation and EMEA headquarters.

At the end of 2006 there were over 135,000 people employed in over 1,000 IDA assisted companies. It should be noted that, in addition to the actual jobs created in IDA supported companies, FDI has significant multiplier effects throughout the economy. Additional jobs are created in indigenous industry, for example in companies that are engaged in sub supply as well as service jobs in the local economy. In addition to these direct benefits, FDI creates demand for high skills, advanced management and business processes, and guides beneficial national developments in education, science, telecommunications and other infrastructure.

The measures of progress in a globalised, high-value and knowledge-intensive economy, as we have in Ireland, are different to those that we used in the past. The number of jobs created was the key criterion of success in the 1990's, whereas now it is the quality and value of the activities undertaken here that matters, specifically in areas such as more skill-intensive manufacturing, financial services, headquarters functions for European and wider markets, and in research and innovation.

I am satisfied that the good work already being done by the Agency in winning important new investment for the country will continue into the years ahead.

Table showing the number of new jobs created in IDA supported companies in each of the years 1997 to 2006