Written answers

Thursday, 28 January 2016

Department of Jobs, Enterprise and Innovation

Foreign Direct Investment

Photo of Clare DalyClare Daly (Dublin North, United Left)
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126. To ask the Minister for Jobs, Enterprise and Innovation the arrangements he made with the Microsoft company in relation to being granted the status of being domiciled in Ireland; if that arrangement included a condition, that it was required to retain manufacturing here; and if this arrangement is now non-existent, given the decision of the Arvato plant in Swords in County Dublin, to relocate its packaging and distribution of Microsoft software, to the Czech Republic from July 2016. [3518/16]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The issue of a company’s domicile for tax reasons does not come within the remit of my Department. It would therefore not be possible for me to make any specific arrangements with Microsoft and I obviously have not done so. The IDA’s engagement with this company does not include a condition that they utilise a specific packaging supplier based in Ireland. Moreover, it would not be appropriate or realistic for the IDA to include such conditions in their agreements with foreign companies locating here. Companies require the freedom to place contracts and develop their operations on a commercial basis, subject of course to Irish and EU legislation.

The Development Agencies under my remit work closely with their client companies to maximise the wider added value to the Irish economy. This includes encouraging multinational companies to embed their operations in Ireland and to develop contracts and outsourcing arrangements with other companies located here.

This policy has been very successful, especially in terms of job creation. Unfortunately, on occasion, companies may change their arrangements with a consequent negative impact on the Irish economy and to employment. While these decisions are regrettable, the overwhelming impact of Foreign Direct Investment in Ireland remains positive, as reflected by the record job growth in 2015.

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