Bernard Durkan (Kildare North, Fine Gael)
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Question 74: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which research has been undertaken to ascertain the most likely reason for foreign inward investment here; and if she will make a statement on the matter. [42065/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 75: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she or her Department have studied the possible reason for any slow down in foreign inward investment here; and if she will make a statement on the matter. [42066/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 74 and 75 together.

Forfás, the national policy and advisory body for enterprise, trade, science, technology and innovation conducts extensive research into a wide range of areas relating to the enterprise environment in Ireland from energy and human capital policy to infrastructure and tax policy.

This research and subsequent outputs are produced with a view to supporting the continued development of an environment that makes Ireland an attractive location for enterprise both for indigenous and foreign owned companies. In undertaking any research study Forfás works closely with relevant stakeholders from industry and academia as well as the development agencies to ensure that the needs and interests of different groups including foreign enterprises are fully taken into account and reflected in the research.

Ireland is still considered an attractive location as a host country for FDI. Among the main reasons for Ireland's success in this area is our stable political environment and regulatory regime. We have a reputation for flexibility, responsiveness and innovation. We have a pro business tax environment with a corporation tax rate of 12.5% and, in the recent Budget, we increased in the R&D tax credit from 20% to 25%. We have a young, highly educated, skilled workforce. In addition, we have excellent research facilities and capabilities, with highly productive alliances between industry and academia and, in the recent Budget, we allocated €335m to the continued implementation of the Strategy for Science, Technology and Innovation.

Traditionally one of the main factors driving FDI to Ireland was low labour costs for relatively low to unskilled work. This is no longer the case. Today, Ireland successfully competes for the highest value FDI projects in the world. Inevitably, however, in a developed economy that means the termination or transfer of certain activities, which are no longer practicable. Even in the best economic conditions there has always been a certain "churn rate" in employment in IDA client companies in any given year. This "churn-effect" is an inescapable fact of modern economic life and should not lead to lamentation about the end of our attractiveness as an investment location nor the suggestion that Ireland is no longer a viable manufacturing location. Manufacturing as a whole continues to create and sustain jobs.

There are also challenges associated with retaining investment from companies currently located in the country. What is happening in multinational companies in Ireland today is the continuation of transformations — far more often positive than not — which have been occurring for at least the past decade.

In the current global economic climate winning FDI is increasingly more challenging. However I am glad to be able to report that IDA Ireland is doing very well in this space. Last year alone IDA secured 114 new investments and created over 9,000 jobs. For 2008 the Agency set itself a target of 122 investments of which 93% have been achieved. To date in 2008, there have been 43 investment announcements with a potential to create almost 4,000 new jobs.

I am confident that the policies being pursued by Government together with the work of IDA on the ground will continue to bear fruit in terms of investment and job creation for this country in the years ahead.