Update: Attracting New Investment – Jobs, Enterprise and Innovation 16th October, 2014

To ask the Minister for Jobs, Enterprise and Innovation the extent to which this economy continues to be competitive in terms of attraction of new investment and encouraging indigenous investment leading to job creation; and if he will make a statement on the matter

*    For WRITTEN answer on Thursday, 16th October, 2014.

Ref No:   39642/14

We are continuing to make progress as a country in improving our international competitiveness, towards the Government’s objective of being the best small country in the world in which to do business. Since 2011, Ireland’s international competitiveness rankings in both the IMD and WEF competitiveness reports has improved €“ from 24 ^th  to 15 ^th  in the IMD’s World Competitiveness Yearbook, and from 29 ^th  to 25 ^th  in the WEF Global Competitiveness Report. In the World Bank’s Doing Business 2014 report, Ireland is ranked 15 ^th  out of 189.

According to the WEF, Ireland ranks ahead of other advanced countries in categories such as Institutions (e.g., rule of law, corporate governance, etc.), Labour Market Efficiency, and the Goods Market category (e.g. presence of competition, taxes, etc.). Irish scores are weakest in the ‘Macro-Economic Environment’ category which is driven by Government debt and borrowing. Market size and access to funding are also somewhat weaker. These weaknesses are being addressed through Government macro-economic policies and the on-going focus on improving the performance of financial institutions.

Ireland’s positive and improving business environment was noted in the European Commission’s Member States’ Competitiveness Report  (published 11 ^th  September 2014).

In terms of employment creation, according to the CSO, 33,700 jobs were created in the year to Q2 2013 and a further 31,700 were created in the year to Q2 2014.

In relation to the net change in Enterprise Agency-supported employment, total permanent, full-time employment in agency-assisted companies in the industrial and services sectors amounted to 303,155 in 2013, an increase of 8,579 jobs on 2012 employment.

Foreign Direct Investment has been buoyant so far this year, with IDA Ireland securing over 100 investments in the first half of 2014, up from 70 in the same period of 2013, with potential job creation of 8,000.  40% of the investments come from companies investing in Ireland for the first time, as Ireland’s value proposition continues to resonate with new investors. The Government has recently published a Policy Statement on FDI designed to ensure that Ireland’s inward investment offering continues to be attractive and competitive.

On the indigenous side, the National Policy Statement on Entrepreneurship in Ireland has just been published which aims to support the creation of an additional 93,000 jobs from start-up companies in the next five years.