Michael Healy-Rae (Kerry South, Independent)
Link to this: Individually | In context

Question 190: To ask the Minister for Jobs, Enterprise and Innovation the position regarding the Horizon 2020 report; the action that has been taken since it was launched; and if he will make a statement on the matter. [39463/11]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

In early 2010, IDA Ireland published 'Horizon 2020', its strategic blueprint for attracting Foreign Direct Investment (FDI) into Ireland in the coming decade. FDI has been, and will continue to be, a key element in the export led recovery of the economy. Horizon 2020 sets out a road-map of what is needed to fuel Ireland's future success with leading global corporations, setting the following targets for achievement over the period 2010 to 2014:

· 640 investments;

· 50% of investments outside of Dublin and Cork;

· 62,000 direct new jobs in Ireland;

· 20% of Greenfield investment from emerging markets by 2014; and,

·€1.7bn client spend on Research, Development and Innovation (RD&I) by 2014.

IDA Ireland's results for 2010 show that very good progress has been made towards achieving these targets. While final results for 2011 will not be available until next month, the indications are that these, too, will be very encouraging, particularly with regard to the job creation target in Horizon 2020.

Successful implementation to date by IDA Ireland of its Horizon 2020 Strategy has resulted in the achievement of the following significant outcomes:

·Investments

126 foreign direct investments were won in 2010, with 47 companies investing in Ireland for the first time, representing a 20% increase on the 2009 figure. 62% of investments came from existing client companies.

I am informed by IDA Ireland that the trends for 2011 are very encouraging with mid year results for 2011 showing projects approved up from 63 in 2010 to 75 in 2011.

·Regional Spread

In 2010, IDA Ireland achieved a total of 37% of projects outside of Dublin and Cork. These projects were employment intensive, resulting in the strong outturn of 45% of jobs locating outside of Dublin and Cork.

IDA is continuing its efforts to win investments for Ireland and to encourage, where appropriate, investments to locate in regional locations in line with the National Spatial Strategy. To date in 2011 there have been a number of significant regional investments announced including: JRI-America in Tralee (100 jobs); Valeo in Tuam (100 jobs); Pivot in Galway (100 jobs); AMS in Athlone (50 jobs); and, Kelcourt in Offaly (55 jobs).

·Employment

IDA supported companies created almost 11,000 new jobs in 2010, significantly greater than the previous year. At the same time, 9,545 jobs were lost by IDA supported companies, leaving an overall increase in IDA's employment portfolio of 1,352. A number of the job losses arose from the implementation of job reductions announced in the first half of 2009. IDA's strategy includes winning as many new jobs as possible each year and giving equal priority to maintaining existing jobs. The Agency recognises that job losses occur every year for a variety of reasons including changing competitiveness, competition from sister sites, product and technology lifecycles or global location rationalisation as a result of mergers and acquisitions.

I am informed by the Agency that it expects that the 2011 performance in relation to jobs will be stronger than in 2010.

·Growth markets

In order to achieve its objective of achieving 20% of Greenfield investments from high growth markets (India, China, Russia and Brazil) by the year 2014, IDA Ireland recently expanded its global office network to include Shenzhen in China, Bangalore in India and Singapore. Also, in 2011, the Indian company HCL announced the opening of a software delivery centre in Dublin which will create 80 jobs.

·RD&I

In 2010 IDA approved 37 Research, Development and Innovation (RD&I) investments with an associated spend of approximately €500 million. These investments play a strategic role in embedding existing employment and laying the foundations for increased future employment. This strong performance has continued in 2011 with a number of significant RD&I projects announced, for example, EMC (Cork), Boston Scientific (Tipperary), Biotrin (Dublin), Caci (Dublin), Misys (Dublin), ON Semiconductor (Limerick).