Peadar Tóibín (Meath West, Sinn Fein)
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29. To ask the Minister for Jobs, Enterprise and Innovation if the high cost of commercial and residential rents is a factor in wage demands and if the IDA is aware if they feature in the decision-making process of foreign direct investment firms looking to locate here. [2065/16]

Richard Bruton (Dublin North Central, Fine Gael)
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There are many factors that make Ireland competitive and attractive for Foreign Direct Investment and contribute to a decision of a multinational company to locate here. Underpinning IDA Ireland’s long track record of attracting global companies and contributing to investor confidence are factors such as high-quality education and skills development, our innovation ecosystem, ease of doing business and openness to trade, along with our overall competitiveness in terms of costs and taxation.

IDA Ireland achieved record results in 2015: its client companies created 18,983 new jobs across a range of sectors, with every region of Ireland posting net employment gains. The total annual net job increase amounted to 11,833, which compares favourably to the figure of 7,131 for the preceding year – a year-on-year rise of 66%. 2015. 213 new investments in Ireland were also made during the course of the year, of which 94 came from new names.

Notwithstanding these record numbers, global competition for FDI remains intense. That is why we must be vigilant that the right balance between wage growth and competitiveness is maintained and that contributing factors such as residential rental costs are addressed through improving the supply of accommodation. In relation to commercial rental costs, it is vital that the supply of suitable property is increased. Through the actions set out in the Construction 2020 Strategy, we aim to increase the provision of commercial property by private development. In the interim, IDA Ireland has begun a three-year building programme for state-of-the-art advanced technology buildings and office facilities in a number of regional locations where there has been insufficient private sector property investment. This should help ensure that property solutions are available for multinationals potentially seeking to locate here.

Our work in continuing to attract international investment in Ireland will be guided by both my Department’s Policy Statement on Foreign Direct Investment and IDA Ireland’s own five-year strategy “Winning - Foreign Direct Investment 2015-2019”. The IDA Strategy details both how the Agency will broaden its target sectors further and seek new markets over the next five years. Its ambitious targets include boosting FDI in Ireland by over 40% and creating 80,000 new jobs in the economy. As part of its growth strategy, IDA has also committed to increasing the level of investment into each region of Ireland by between 30% and 40%.