Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

264. To ask the Minister for Finance the extent to which financial services here continue to compete internationally and effectively with all others relative to access, size and location; the degree to which efforts continue to be made in this regard in the aftermath of Brexit; and if he will make a statement on the matter. [3326/23]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Ireland is now one of Europe’s major financial centres, with direct and indirect employment across investment management, banking, insurance, aviation financing, fintech and payments.

Direct employment in international financial services at the end of 2021 stood at over 52,800 with over 30% regionally based. Data for 2022 should be available shortly, but it is fair to say that the sector in Ireland is well positioned for further growth, a goal which aligns with the vision contained in the Update to Ireland for Financestrategy (launched October 2022) and the development of a robust and sustainable financial services sector in Ireland.

In this regard, the Government continues, through the IDA and other agencies, to promote the attractiveness of Ireland as a global location of choice for specialised international financial services, building on our strengths in talent, technology, innovation, excellent client service, stable and consistent policymaking and an open economy while also focusing on capturing on new opportunities in a changing market and embracing the highest forms of governance.

Since the Brexit referendum in the UK, we can point to a number of firms that have moved to Ireland in banking plus the many investment firms who have chosen Ireland as their European base. Three of the largest market infrastructure players in their respective markets have made Ireland their post-Brexit location for their European business and a couple of ratings agency have also announced the relocation of their EU HQ location to Ireland. As such over recent years, the nature, scale and complexity of Ireland’s international financial services sector has and continues to change in a number of ways as a result of firms relocating within the single market, and the sector is broader and more diverse with more firms carrying out a greater range of regulated activities than at any time. The full impact of Brexit for Ireland’s international financial services sector may not materialise for some years.

IDA Ireland recognises that there is global competition from many overseas locations within Europe and further afield in attracting mobile foreign direct investment, across all sectors, including international financial services. In this respect, the Agency is constantly monitoring competitor locations and the value propositions they offer potential mobile investment.

Competition for FDI is intense and global with virtually every country in the world actively seeking new FDI investments. Every single job created in Ireland by an overseas company has to be fought for, against every increasing competition from a growing range of sophisticated locations.

Despite the risks from current geopolitical changes, the Government believes that FDI opportunities for Ireland will be on-going, however, investment will be hard won, and it will require continuing whole-of-Government support and private sector participation.