Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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To ask the Minister for Jobs, Enterprise and Innovation the proportion of jobs in foreign direct investment outside of Dublin and Cork. [37149/12]

Richard Bruton (Dublin North Central, Fine Gael)
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In accordance with its Horizon 2020 Strategy, IDA Ireland is aiming to create 63,000 new jobs in Ireland over the period 2010-2014, with 50% of these investments to be based in locations outside of Dublin and Cork. Central to IDA Ireland’s strategy is to build on existing regional strengths to ensure Ireland’s economic development, while optimising regional spread, in line with the National Spatial Strategy.

In implementing its strategy, IDA Ireland continues to work with existing client companies in order to provide them with the support required to encourage transformation and become more competitive. The majority of foreign direct investment (FDI) secured by IDA Ireland is from the existing base of FDI clients so on-going effective and collaborative engagement with existing clients in areas such as skills and technology enhancement; research, development and innovation in product and process improvements; energy initiatives; and, securing new mandates required to increase the Irish operation’s strategic importance can assist in developing, retaining and growing employment opportunities in these companies.

IDA Ireland’s client companies created over 13,000 new jobs in 2011, up 20% on the previous year’s level of 10,897, increasing the total number of those employed directly by IDA client companies to almost 146,000. There was an overall increase of 17% in the number of investments from IDA client companies in 2011 and, despite the current global economic situation and a strong increase in international competition, there was a record number of 148 new investments won during the year across all industry segments. Of these 148 investments, a record number of 61 were from multinational companies investing in Ireland for the first time while 87 were made by existing client companies.

IDA Ireland has explained that the majority of the 87 investments made in 2011 by existing client companies were primarily based in Dublin and/or Cork and involved either an expansion or transformation of their existing operations. Furthermore, the new name investments secured were primarily in sectors such as ICT, Financial Services, Global Business Services, Online Gaming, Digital Media, etc. which had specific requirements and sought the critical mass that our larger cities, such as Dublin and Cork, offer. This could account for the decrease in the investments made in locations outside of Dublin and Cork from 37% in 2010 to 28% in 2011. IDA Ireland has confirmed, however, that to date in 2012, the percentage rate for winning investments outside of Dublin & Cork is currently c. 50%.

The global economy and in particular the European economy, which is the primary target market for FDI clients in Ireland, is in a low growth phase. The challenge for IDA Ireland is to win FDI in this low growth environment. In addition, there is intense and continual international competition to win this FDI, which is mainly dominated by Metro City Regions with populations in excess of 1 million such as London, Manchester, Singapore, Amsterdam, Boston, Los Angeles etc.

As Ireland competes for high quality investments, the concept of scale is crucial. Leading global corporations require a significant population pool, access to qualified talent, world class physical and digital infrastructure in addition to the availability of sophisticated professional and business support services. Ireland has only one Metro Region, the Greater Dublin area, so, in order to achieve regional economic development, IDA Ireland prioritises the marketing of Gateway locations within each Region as the locations of critical mass (i.e. sufficient scale of population, skills, infrastructure, companies, business services etc.) and highlights the opportunities provided by Hub locations which are within commuting distances of these Gateways. In addition, IDA promotes other locations as part of its marketing efforts in response to specific client requirements.

The following revised reply was received on 14 November 2012.

In accordance with its Horizon 2020 Strategy, IDA Ireland is aiming to create 63,000 new jobs in Ireland over the period 2010-2014, with 50% of these investments to be based in locations outside of Dublin and Cork. Central to IDA Ireland’s strategy is to build on existing regional strengths to ensure Ireland’s economic development, while optimising regional spread, in line with the National Spatial Strategy.

In implementing its strategy, IDA Ireland continues to work with existing client companies in order to provide them with the support required to encourage transformation and become more competitive. The majority of foreign direct investment (FDI) secured by IDA Ireland is from the existing base of FDI clients so ongoing effective and collaborative engagement with existing clients in areas such as skills and technology enhancement; research, development and innovation in product and process improvements; energy initiatives; and, securing new mandates required to increase the Irish operation’s strategic importance can assist in developing, retaining and growing employment opportunities in these companies.

IDA Ireland’s client companies created over 13,000 new jobs in 2011, up 20% on the previous year’s level of 10,897, increasing the total number of those employed directly by IDA client companies to almost 146,000. There was an overall increase of 17% in the number of investments from IDA client companies in 2011 and, despite the current global economic situation and a strong increase in international competition, there was a record number of 148 new investments won during the year across all industry segments. Of these 148 investments, a record number of 61 were from multinational companies investing in Ireland for the first time while 87 were made by existing client companies.

IDA Ireland has explained that the majority of the 87 investments made in 2011 by existing client companies were primarily based in Dublin and/or Cork and involved either an expansion or transformation of their existing operations. Furthermore, the new name investments secured were primarily in sectors such as ICT, Financial Services, Global Business Services, Online Gaming, Digital Media, etc which had specific requirements and sought the critical mass that our larger cities, such as Dublin and Cork, offer. This could account for the decrease in the investments made in locations outside of Dublin and Cork from 37% in 2010 to 28% in 2011. IDA Ireland has confirmed, however, that to date in 2012, the percentage rate for winning investments outside of Dublin & Cork is currently 27%

The global economy and in particular the European economy, which is the primary target market for FDI clients in Ireland, is in a low growth phase. The challenge for IDA Ireland is to win FDI in this low growth environment. In addition, there is intense and continual international competition to win this FDI, which is mainly dominated by Metro City Regions with populations in excess of 1 million such as London, Manchester, Singapore, Amsterdam, Boston, Los Angeles etc.

As Ireland competes for high quality investments, the concept of scale is crucial. Leading global corporations require a significant population pool, access to qualified talent, world class physical and digital infrastructure in addition to the availability of sophisticated professional and business support services. Ireland has only one Metro Region, the Greater Dublin area, so, in order to achieve regional economic development, IDA Ireland prioritises the marketing of Gateway locations within each Region as the locations of critical mass (i.e. sufficient scale of population, skills, infrastructure, companies, business services etc.) and highlights the opportunities provided by Hub locations which are within commuting distances of these Gateways. In addition, IDA promotes other locations as part of its marketing efforts in response to specific client requirements.