Bernard Durkan (Kildare North, Fine Gael)
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106. To ask the Minister for Jobs, Enterprise and Innovation to outline the extent to which he expects foreign direct investment to play a part in job creation over the next five years; and if he will make a statement on the matter. [6552/15]

Bernard Durkan (Kildare North, Fine Gael)
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113. To ask the Minister for Jobs, Enterprise and Innovation to outline the extent to which he expects Irish brand, image, culture and heritage to continue to be beneficial in attracting more industry here as well as a means of creating a good international image for the future; and if he will make a statement on the matter. [6561/15]

Richard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 106 and 113 together.

My Department’s Policy Statement on Foreign Direct Investment, which was published at the end of July 2014, sets out the strategic direction for FDI to 2020 and the key actions needed to enhance Ireland’s attractiveness and business environment in the context of intensified international competition for investment and talent. As the Deputy is aware Ireland continues to perform well in the attraction of new investment and particularly so in recent years as FDI inflows to Europe have slowed considerably.

Total employment at IDA client companies now stands at 174,488 people, the highest level in the history of IDA Ireland. The job performance took place against a particularly challenging European economic environment and changing corporate taxation landscape. There were 197 investments in 2014, equating to a 20% increase on 2013. There was a notable rise in new-name investment, with 88 new name investors in 2014.

This highlights both the draw of large wealthy markets for FDI, particularly when the focus activities are sales and marketing, but also investor options across Central & Eastern Europe and Western Europe for manufacturing, R&D and business support services. The range of countries competing for FDI in Europe demonstrates the intensity of the marketplace to secure investments for Ireland. In Ireland’s case, cost competitiveness, the availability of a dynamic talent pool and targeted sectoral focus, was underpinned by the strong economic management and certainty on the 12.5% corporate tax rate.

The US continues to be the largest single investor in Europe accounting for about 25% of all inward investment projects and job creation. While Ireland is a very significant recipient of US FDI for contestable investments, competition with the UK, Germany and France, the major overall beneficiaries of US investment into Europe, is intense. The proposed TTIP currently under negotiation could be transformational in this area. There are potentially many benefits for Ireland from a successful deal but we must also be aware that such trade deals can impact FDI flows.

IDA Ireland constantly monitors competitor locations and the value propositions they offer potential mobile investment. Competitor locations differ depending on the sector of the mobile investment. In this respect, IDA Ireland is continuously working to ensure that Ireland is the most competitive, innovative and relevant to the investment being targeted.

Multinational companies account for almost 10% of the Irish workforce and are of crucial strategic importance for the economy due to the quality of the jobs involved, their export focus and the massive knock-on impact they have on the wider economy.

Ireland’s relative cost competitiveness, corporate tax regime and available direct firm level financial supports remain critically important - but in reality they are no longer aspects that will substantially differentiate Ireland’s offering for FDI over the longer term. So in addition to maintaining a competitive offering in these areas we must at the same time redouble efforts to develop and reinforce the aspects that truly differentiate Ireland’s offering in a context of intensified global competition for mobile investment. With this objective in view, IDA Ireland is in the process of preparing a new corporate strategy for the years 2015 to 2020, which is currently being finalised and will be launched in the coming weeks.

We are determined to ensure that every region will benefit from the recovery. Yesterday, along with the Taoiseach and the Tánaiste, I announced the details of a comprehensive new strategy to support enterprise growth and job creation at regional level. The Regional Action Plan for Jobs initiative seeks to build on the success of the annual Action Plan for Jobs process by developing locally driven plans that can build on the strengths and opportunities identified in each region.

The strategy will provide up to €250 million over five years in additional funding to support regional enterprise development. This includes the roll out of a five year, €150 million property investment programme by the IDA to attract foreign direct investment into the regions. This programme will build on the recent investment by the IDA in a number of advance manufacturing facilities in regional locations. A further sum of up to €100 million will be available to Enterprise Ireland to support enterprises in the regions to start-up, grow and export, thereby creating more jobs in regional locations.