Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

114. To ask the Minister for Jobs, Enterprise and Innovation the extent to which he continues to attract new investment from new locations globally; the degree to which this continues to benefit the economy; and if he will make a statement on the matter. [29281/15]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

119. To ask the Minister for Jobs, Enterprise and Innovation the major considerations of foreign companies contemplating investment here; and if he will make a statement on the matter. [29287/15]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

122. To ask the Minister for Jobs, Enterprise and Innovation the extent to which other European locations have been noted as serious competitors for foreign direct investment; and if he will make a statement on the matter. [29290/15]

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

I propose to take Questions Nos. 114, 119 and 122 together.

IDA Ireland has informed me that the vast majority of its client feedback shows that the availability of talent at a competitive price is one of the key metrics when it comes to making investment location decisions. The country's ability to offer the appropriate talent through training, re-deployment and immigration all speak to the competitiveness of Ireland's offering. Other factors which also affect investor decisions include Ireland’s relative cost competitiveness, good infrastructure, ease of doing business and openness to trade, competitive corporate tax regime, property availability, innovation landscape and available financial supports.

Clear trends are evident in the demands of FDI investors in selecting particular locations, including: regions of scale with appropriate urban centres, supply of skilled people, international connectivity, energy infrastructure, telecommunications, R&D capabilities, sub-supplier and services infrastructure.

IDA Ireland constantly monitors competitor locations and the value propositions they offer potential mobile investment. Competition for FDI is intense and global, with virtually every country in the world actively seeking new FDI investments. Globally, the US continues to be the largest single investor in Ireland accounting for over 70% of investments won since 2010. Competition for US FDI in Europe is intense.

Europe is IDA Ireland’s second largest market and accounts for 20% of investments won by IDA since 2010. Within Europe, Ireland’s FDI performance positions us in absolute terms inside the top ten European locations for investment projects with the UK, Germany and France as the top locations.

IDA Ireland has a long and credible track record of presenting potential investors with the best location options throughout Ireland for each client.

During 2014 some 15,012 new jobs were created by IDA client companies with a net increase in employment of 7,131, one of the net highest levels of job creation in a decade. The impact of the FDI companies is very significant to the Irish economy injecting €8.5 billion of wages and salaries into the Irish economy. Some €2.8bn of tax revenue is paid by IDA client companies via corporation tax with some €2.6bn of materials and €11.3bn of services purchased by these companies.

In February 2015 IDA announced its new strategy entitled "Winning: Foreign Direct Investment 2015-2019" which sets out ambitious targets to boost FDI in Ireland by over 40%, creating 80,000 new jobs in the economy over the next five years.

Regional development is a major component of IDA Ireland’s new corporate strategy. For the first time ambitious investment targets have been set for each region, with a strong focus on securing an increased share of investments. Central to this is a strong ambition for employment growth throughout all regions over the lifetime of the strategy. By working closely with stakeholders in each region, as a cohesive team, it will be possible to strive for these goals;

- A €150m property investment plan, spread out over five years, will support the achievement of the organisation's regional goals. The funding will be used to upgrade Ireland's Business and Technology parks, make investments in a number of strategic utility-intensive sites and build new advanced technology buildings in regional locations.

- IDA is targeting a 20% increase in spending by overseas firms within Ireland, bringing expenditure to €26.8bn per annum. In particular IDA is committed to showcasing Irish industry to its client companies.

- A 20% increase in cumulative spend (€3bn) on Research Development and Innovation is also a target of the strategy, as overseas companies place additional high value activity into Ireland.

Ireland’s future FDI success will require continued support of existing sectors, and exploiting new opportunities in new sectors. It will also require continued marketing of global markets and in relation to IDA’s global strategy, North America will remain the key source market for FDI, while also targeting market share growth in Europe and increasing returns from regions such as Asia-Pacific.

Additionally, Growth Markets including India China, Singapore, South Korea, Japan, Australia/New Zealand, Russia and Brazil, have become central sources of and destinations for global FDI flows, with Asia in particular becoming a key player. IDA Ireland has put additional resources into these markets over the past five years and has seen good results with ‘New Name’ investments rising from 4% in 2010 to 20% in 2014 and on average accounting for 10% of total investment. A strong emphasis in the strategy is on bringing first time investors to Ireland from USA, Europe and the new markets where IDA will continue to target high growth companies.

The ambitious targets will bring total direct employment by overseas companies in Ireland to 209,000 people by 2019. This will be the highest level of employment from overseas firms in the history of the State and will deliver wide-ranging economic benefits for the people of Ireland.