Niall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

223. To ask the Minister for Jobs, Enterprise and Innovation her views on the analysis in the publication (details supplied) regarding FDI development in Ireland with respect to regional spread of FDI jobs; the wage level of FDI employment compared to domestic enterprises; and if she will make a statement on the matter. [3734/17]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I always welcome academic contributions to the wider national debate on how Ireland can best benefit from our record high levels of foreign direct investment (FDI). I also accept that FDI can make an even bigger contribution, all over Ireland, than it is now. However, I think it is quite clear that the impact of FDI on our economy and society has been – and continues to be – overwhelmingly positive.

For a start, overseas investment has played a huge part in our country’s economic recovery and continues to drive job creation across Ireland. IDA Ireland’s record results for 2016, which reflected our best ever job gains and levels of new investment, speak for themselves. Those results show that in 2016 every regional location in Ireland saw net job increases, with 52% of all jobs created by the Agency’s clients last year based outside of Dublin. This reflects the intensive focus being placed on the best possible regional dispersal of FDI investments. 

The level of employment in overseas companies is only part of this positive picture. FDI companies generally offer excellent quality and well paid jobs which have significant direct and indirect impacts on communities across the country. The average salary in IDA approved jobs was €51,237 in 2016, up from €49,118 in 2015. This is above the national average annual earnings of €45,075 in 2015.  These salary levels are sustained by the high value jobs which we target in a diverse range of key sectors including international financial services, technology, life sciences and engineering.

It is also the case that the jobs created by FDI drive other economic activity in the State. It is estimated that every ten positions created by an IDA client company support a further seven jobs elsewhere in the economy. When these jobs are included, the total employment impact of IDA Ireland clients extends to approximately 340,000 people.

While there is always room for improvement, I believe our FDI led growth model has proven its worth in terms of attracting employment and investment. I am confident that it will remain a key element of our national economic strategy for many years to come and that it will continue to yield benefits for people all over Ireland.