Aindrias Moynihan (Cork North West, Fianna Fail)
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165. To ask the Minister for Enterprise, Trade and Employment the balance between the funds spent on foreign direct investment, relative to expenditure given to indigenous industries; and if he will make a statement on the matter. [22026/23]

Simon Coveney (Cork South Central, Fine Gael)
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Foreign Direct Investment - or FDI - plays a significant role in Ireland's growth model and economic strategy. Despite the challenges of the last few years, the performance of our FDI sector has been exceptional with record corporation tax figures for 2022 announced last month. The numbers directly employed in IDA multinational clients in Ireland in 2022 reached 301,475, the highest FDI employment level ever and a 9% increase on 2021. IDA client companies recorded 32,426 gross new job gains in 2022, with a 24,019 net jobs increase. IDA won 242 investments in 2022 for Ireland, 103 of which were new name investments. Importantly, 52% or 127 of the 242 investments won went to regional locations, with employment growth in every region of the country.

Enterprise Ireland client companies created 19,660 new jobs in 2022 – translating into a net increase of 10,841 jobs created. EI Client companies now employ 218,178 people, an increase of 5% on the 2021 outturn and 68% of these jobs are outside Dublin. Employment increased across Enterprise Ireland’s three core economic sectors: Technology & Services (+8%), Industrial and Life Sciences (+5%) and Food and Sustainability (+3%). In this regard, indigenous enterprise is central to our objective of diversified, sustainable growth and programmes are targeted at firms in the manufacturing and internationally traded services sectors, with a particular focus on driving international trade. Government has focused its efforts on developing an integrated system wide approach to accelerate start-up growth and scaling, that includes access to funding both public and private; investments in R&D and innovation; investment in balanced regional enterprise development; management development and training. Enterprise Ireland and the Local Enterprise Office (LEO) network provide an integrated support system for Irish firms at all stages of development. Increasingly, the LEOs have also been engaging with the locally traded sectors to support them in the transition to a digital, low carbon economy.

Other Government Departments and agencies, such as Revenue, Microfinance Ireland, Fáilte Ireland, the LEADER programme, Skillnet and Education and Training Boards also provide direct assistance to indigenous firms.

Our economy is performing well, and we have a strong foundation from which to build future progress. The Government’s White Paper on Enterprise, published late last year, sets out Ireland’s enterprise policy for the next decade reaffirming our commitment to FDI as a core pillar of our enterprise policy with an emphasis on digital and green, with sustainability, innovation and productivity at its heart. In implementing the White Paper we will build on the strong foundations already in place and ensure businesses in Ireland are well positioned to seize opportunities to grow and succeed.

We know that sustainability is a key consideration now for companies seeking to locate new facilities. The enterprise agencies are working closely with my Department to ensure that we leverage the green transition and showcase Ireland as a climate-friendly and sustainable business environment. We are committed to ensuring that we leverage the competitive advantage of Ireland’s renewable energy opportunities, including offshore wind and hydrogen production potential.

We are also focused on strengthening linkages between our foreign and Irish-owned firms, developing stronger ecosystems and to encourage collaboration and collective action through clustering and help to embed Irish firms in the value chains of FDI-intensive sectors and to benefit from positive spillovers.

In terms of funding provided through my Department's enterprise development agencies, the following are the figures requested by the Deputy:

- Enterprise Ireland’s capital expenditure increased from €148m in 2018 in €228m in 2022.

- IDA Ireland’s capital expenditure increased from €113m in 2018 in €167.5m in 2022.

- Capital expenditure by the LEOs increased from €23m to €28m over the same period.

- 2023 Capital allocations for Enterprise Ireland, IDA Ireland and the LEOS are: €357.8m; €207.8m; and €35.8 m respectively.