Noel Rock (Dublin North West, Fine Gael)
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258. To ask the Minister for Jobs, Enterprise and Innovation if raising the minimum wage in 2017 would have an impact on the IDA's ability to persuade businesses to relocate here following Brexit; and if she will make a statement on the matter. [21237/17]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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My responsibility, as Minister for Jobs, Enterprise and Innovation, is on ensuring that Ireland as a whole is best placed to capitalise on potential foreign direct investment (FDI) opportunities may emerge on account of Brexit. That is why I secured significant additional funding for IDA Ireland to help the Agency better respond to the challenges and opportunities Brexit may present. I regularly engage with the IDA about its Brexit-related requirements and other issues in connection with securing new investment for Ireland.

Competition for all mobile FDI, including opportunities arising as a result of Brexit, is intense. It is important that Ireland continues to remain competitive in order to attract this investment and labour costs play a part in this. The National Competitiveness Council has noted that, although demands for wage increases are understandable after a period of economic stagnation and wage cuts, Ireland's relative competitive position would be negatively affected if wage growth outpaced productivity growth and wage growth in competitor countries. Therefore, to ensure that wages are sustainable, wage growth should not outpace productivity growth. Having said that, I know there must also be a focus on protecting real living standards by avoiding, to the greatest extent possible, significant increases in the costs of living.