Bernard Durkan (Kildare North, Fine Gael)
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Question 97: To ask the Tánaiste and Minister for Enterprise, Trade and Employment how she proposes to continue to attract foreign investment with particular reference to job creation in the manufacturing sector; and if she will make a statement on the matter. [13750/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 98: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans to enhance Ireland's image as a location for foreign direct investment; and if she will make a statement on the matter. [13751/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 97 and 98 together.

IDA Ireland is the agency with statutory responsibility for the attraction of foreign direct investment (FDI) to Ireland and its regions. IDA's main focus on securing investment from new and existing clients is in the areas of High End Manufacturing, Global Services (including Financial Services) and Research, Development and Innovation. In addition, IDA is focusing on new sectors such as Clean Tech, Services Innovation and Convergence. IDA is confident that there are further FDI opportunities for Ireland in these key sectors, which will be augmented in the future by a number of emerging technologies and new business models.

Despite the global economic crisis, Ireland has continued to attract significant high end FDI. In 2008 there was a 14% increase over the previous year in the number of investments secured. IDA remains guardedly optimistic of Ireland's ability to continue attracting high level of FDI in 2009 and beyond. In fact, 2009 has shown some success already with a number of new investments won that have a potential to create 869 jobs.

Ireland is now seen by the global business environment as a prime location for Research Development and Innovation functions. IDA has played a key role in establishing this competitive advantage for Ireland and is heavily involved with all stakeholders in the RD&I space. The increase in the R&D tax credit available to companies, which was announced in the Budget last October, will increase Ireland's attractiveness as a location for R&D activity and will provide a well-targeted stimulus for such value-added activities.

In an effort to drive business development and secure further foreign direct investment, IDA has recently undertaken a number of initiatives including a 10% shift in resources from non-business generation to business generation. It is expanding the number of people based in the United States and opening new offices in Boston and southern California. The agency is also keen to diversify the source of foreign direct investment and has recently set up offices in Mumbai, India and Beijing, China. The agency has also expanded operations in London. The Agency continues to explore opportunities to market Ireland for FDI in emerging economies in areas such a China, Russian Federation and Brazil.

In addition to attracting FDI, IDA Ireland has placed significant focus on embedding existing multinational enterprises in Ireland, by encouraging them to increase the scale of activities, and to expand the range of activities undertaken. Such skills and knowledge activities include R&D, supply chain management, technical support and headquarter functions.

Maintaining the competitiveness of the enterprise sector in Ireland is a priority issue for my Department and our development agencies. In order to sustain and grow the manufacturing sector, Irish based manufacturing enterprises, whether indigenous or foreign owned, will be encouraged and assisted to continue the progression to high value added sectors and activities, and continue to increase productivity through investments in human capital, technology and innovation.

The "Report of the High Level Group on Manufacturing", identified the focused actions needed by employers, employees and Government to respond to challenges and take advantage of opportunities to further develop the sector in Ireland. The report sets out a number of recommendations directed at key areas of innovation and productivity leading to transformational change, reskilling and management development for the innovative firm, and increasing awareness and take up of existing supports. In line with the recommendation of the High Level Group, a Manufacturing Forum is being established to monitor and oversee the implementation of the group's recommendations.