Finance | Attracting foreign direct investment

To ask the Minister for Finance the extent to which he is satisfied that Ireland remains an attractive location for foreign direct investment; if any further incentives to attract this type of investment are contemplated in this regard; and if he will make a statement on the matter.

REPLY

Ireland remains a very attractive location for foreign direct investment (FDI), reflecting our international reputation as a stable and pro-enterprise economy.  I am conscious of the need to maintain our competitive position globally, given the important contribution that this FDI makes to the domestic economy.

The stock of FDI in Ireland stood at over €1.3 trillion at the end of 2022. Indeed, the IDA reported the highest ever increase in FDI-related employment last year, with a 9 per cent increase in employment on 2021. The IDA estimates that the multinational sector supports more than 300,000 jobs, approximately one-eighth of our labour force, with further spillovers for jobs in the domestic sector. Furthermore, multinational enterprises contribute to the domestic economy via income and corporation tax receipts.

It is important that we continue to invest in key infrastructure and skills, in order to retain Ireland’s competitive advantage in attracting FDI. Our strong legal and regulatory landscape, talented and flexible workforce, and our reputation as a stable economy will help us to remain competitive in this regard. Measures introduced in Budget 2023 aimed at incentivising employment, for example through income tax cuts and increased childcare subsidies, enhance Ireland’s attractiveness for highly skilled workers further.

As a small, open economy, Ireland is particularly exposed to risks in the global economy, including further shocks to energy supplies and heightened geopolitical tensions. This Government will continue to monitor and plan for risks to our competitiveness in order to support FDI in the year ahead.