Written answers
Wednesday, 4 November 2015
Department of Jobs, Enterprise and Innovation
Economic Data
Peadar Tóibín (Meath West, Sinn Fein)
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26. To ask the Minister for Jobs, Enterprise and Innovation the level of local sourcing by multinationals in this State in percentage terms and in real terms, for each of the past four years. [37214/15]
Richard Bruton (Dublin North Central, Fine Gael)
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Purchases by multinational companies in Ireland of materials and services are an important source of opportunity for indigenous companies in terms of sales thereby creating additional economic activity and jobs in the economy.
My Department produces the Annual Business Survey of Economic Impact (ABSEI), which measures the economic impact of the client companies of Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta, that employ ten or more employees in Ireland. It is important to note that the survey does not include multinationals operating in Ireland that are outside the scope of the agencies above. The level of local sourcing by agency supported multinationals in Ireland for the years 2010 to 2013 is contained in the attached tabular statement. This is the most up to date published data and data for 2014 will be available in the New Year together with any revisions to previous years data.
Since 2013, the Action Plan for Jobs, sets out under Global Sourcing Initiative, the road map to maximise the opportunity for greater sourcing of materials and services by IDA Ireland client companies from indigenous companies supported by Enterprise Ireland. Both agencies work together to expand the knowledge of Enterprise Ireland companies on global supply chain patterns and the requirement of multinationals, to raise the profile of Enterprise Ireland client companies among the multinationals based here in Ireland and to complete sourcing partnerships between such companies. As part of this Initiative, Enterprise Ireland companies are included on IDA Ireland itineraries to introduce them to overseas investors at an early stage.
As part of the Global Sourcing Initiative, last month I took part in a two day trade and investment mission in Ireland organised by EI and IDA Ireland. Over the course of two days more than 370 one-to-one meetings took place between 126 indigenous Irish companies and 69 multinational companies. Each location of the mission facilitated networking events to give Irish owned businesses the opportunity to engage directly with procurement teams from multinationals and discuss how their product or services could add value to an IDA client company in Ireland.
Annual Business Survey of Economic Impact 2013
| Results for all Foreign-owned clients of the Enterprise Development Agencies (IDA Ireland, Enterprise Ireland, Udaras na Gaeltachta) | 2010 | 2011 | 2012 | 2013 |
|---|---|---|---|---|
| Total Materials - Cost of materials and components used directly in the production of goods and services [exclude goods purchased for re-distribution only or any capital expenditure]. | 20,772 | 22,802 | 24,050 | 25,048 |
| Materials sourced in Ireland - Estimated proportion of materials and components produced in Republic of Ireland | 2,518 | 2,862 | 3,289 | 3,634 |
| Materials sourced in Ireland as a percentage of Total Materials purchased | 12% | 13% | 14% | 15% |
| Total Services (inc. Royalties) Cost of all bought-in services, e.g. royalties, agency fees, advertising, transport, fuel, power, repairs, telephone, postage, stationery, computing services, professional fees etc. | 47,475 | 51,239 | 54,934 | 60,088 |
| Services sourced in Ireland - Estimated proportion of services sourced in Republic of Ireland. | 9,418 | 10,763 | 11,072 | 12,028 |
| Services sourced in Ireland as a percentage of Total Services purchased | 20% | 21% | 20% | 20% |
(All monetary figures in €000,000’s)
Source: ABSEI-2013, DJEI, January 2015
Data correct at time of publication.
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