Peadar Tóibín (Meath West, Aontú)
Link to this: Individually | In context | Oireachtas source

93. To ask the Minister for Enterprise, Trade and Employment the steps his Department has taken to mitigate further lay-offs in the technology sector. [8423/23]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The technology sector plays an important role in our economy and the sector has been building for over 40 years and will continue to strengthen its presence in Ireland despite present challenges.

Growth of the tech sector in recent years has been driven by increased digitalisation due to the uptake of new technologies as well as companies rapidly digitalising to increase their online services or enable employees to work remotely. However, a number of companies which develop and provide digitalisation technologies and services are now faced with revised revenue forecasts as a result of softening consumer demand, or the reduced availability or increased cost of finance.

Therefore, some technology companies are now looking to reduce costs in line with revised revenue forecasts and weakening company valuations and this recalibration is not unexpected. The focus of my Department and our agencies is on continued partnership with these companies to grow their presence in Ireland in the long run and deepen their impact in the Irish economy.

Ireland’s business environment has supported the success and the resilience of the tech sector in this country for decades. Our pro-business, flexible environment and the availability of suitable technical, managerial, and multilingual talent, enables technology companies to successfully invest and grow their businesses in Ireland.

Our broader research and development ecosystem supports companies to collaborate and seize new opportunities to scale their businesses using these emerging technologies. Emerging technology trends, such as data analytics, artificial intelligence and smart manufacturing, will also continue to create new opportunities.

Nevertheless, competition for inward investment is intense and Ireland will not lose focus on the key issue of competitiveness. The FDI sector is a key component of the Irish economy, and it is vital that Ireland continues to be an attractive investment destination for this sector.

The Government's new White Paper on Enterprise published last December sets the strategic direction for job-creation and growth for the years ahead. It takes account of the effects of the pandemic; changes in the international trading environment; vulnerabilities in our enterprise sector; and the need to integrate climate change commitments and the digital transition into enterprise policy over the decade ahead.

At Government level we are focused on competitiveness and ensuring that Ireland is the best place in Europe to invest and grow for the future. We are acting on energy, skills, housing, access to water services, and planning, all important issues for the success of the tech sector in Ireland.