Written answers
Thursday, 11 July 2024
Department of Enterprise, Trade and Employment
Foreign Direct Investment
Richard Bruton (Dublin Bay North, Fine Gael)
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175. To ask the Minister for Enterprise, Trade and Employment how he is adjusting the strategy to increase Ireland’s attractiveness as a destination for foreign direct investment in a quickly changing geopolitical environment, which increasingly sees Ireland in competition with larger EU member states better equipped to provide large financial incentives to new investors; and if he will make a statement on the matter. [28636/24]
Peter Burke (Longford-Westmeath, Fine Gael)
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My Department continues to place significant importance in promoting Ireland as a destination for Foreign Direct Investment (FDI) and we work alongside IDA Ireland to strengthen Ireland’s business environment and FDI value proposition, and to identify and support strategic sectors.
In 2024, Ireland ranked fourth place among 67 economies measured for their global competitiveness in the 2024 IMD World Competitiveness Ranking. This is the second consecutive year Ireland has placed in the top five, which is encouraging.
Working hand-in-hand with Government, stakeholders and Enterprise Ireland, IDA Ireland partners and collaborates with international investors and companies, to grow their business, to complete new groundbreaking research and innovation, and to develop a rich, vibrant, talent capability for the needs of industry. In this regard, the goals and objectives of IDA Ireland’s strategy "Driving Recovery and Sustainable Growth 2021–2024" are closely aligned to Ireland’s National Climate Action Plan and the White Paper on Enterprise.
The White Paper on Enterprise, which was published in December 2022, emphasises the importance of FDI to the Irish economy and highlights the importance of the green and digital agendas as drivers of future growth and competitiveness. The latest implementation report, for H2 2023, published in May 2024 and available on my Department's website - www.enterprise.gov.ie - includes updates on the initiatives led by IDA Ireland that have been completed including:
- Embedding carbon abatement into agency operations.
- Driving digital manufacturing objectives through support for industry with the cooperation of the National Institute for Bioprocessing Research and Training (NIBRT) and Digital Manufacturing Ireland (DMI) – including the development of a pipeline of digitalisation projects for Ireland’s manufacturing sector - both funded by the IDA.
- 60 FDI sustainability investments so far in the period 2021 to 2024.
- At least half of all FDI investments for 2021-2024 to locations outside Dublin being achieved.
- To strengthen collaboration between MNCs and SMEs and implementation of global sourcing initiatives to support a 20% uplift in MNC sourcing in Ireland.
- Enhancing FDI partnering in Research, Development and Innovation with the target to deliver 170 additional RD&I investments, and cumulative RD&I investment of €3.8 billion, by client companies in the period 2021-2024.
- To enhance rapid digitisation of the IDA client company FDI base through engaging 400 companies to commence their digitalisation journey with awareness and advisory assistance.
Additional White Paper actions on key infrastructure and capacity challenges are being addressed across Government through NDP-2040 investments. Government also keeps FDI policy under review in the context of recommendations from the National Competitiveness and Productivity Council in their Competitiveness Challenge Reports.
Moreover, earlier this year my Department published Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy which includes a significant FDI element. The strategy identifies a timeline for actions to support the policy such as ensuring the appropriate support mechanisms and funding schemes are in place to support the development of international offshore wind FDI. Development of an offshore industry and international supply chains in Ireland is a competitive necessity to win FDI.
Additionally, this year my Department will publish a National Semiconductor Strategy to ensure Ireland can play its proportionate part in reaching the EU Chips Act target of doubling Europe’s global market share of semiconductors to 20% by 2030.
Finally, my Department is not complacent about Ireland’s competitive position regarding FDI with policies, strategies and the legislative toolkit constantly kept under review to ensure objectives set out in this critical area of the economy are met. In this regard, the IDA is actively preparing its next Strategy to cover the period from 2025.
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