Written Answers - Industrial Development

Wednesday, 29 September 2010

Dáil Éireann Debate
Vol. 716 No. 1

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  1692.  Deputy Arthur Morgan  Information on Arthur Morgan  Zoom on Arthur Morgan   asked the Minister for Enterprise, Trade and Innovation  Information on Batt O'Keeffe  Zoom on Batt O'Keeffe   the geographic concentration of foreign direct investment in each of the past ten years; the numbers of Industrial Development Agency supported companies that have been set up in each of the past ten years; the numbers of IDA supported companies that have been set up in each of the past five years on a county basis; and if he will make a statement on the matter. [31939/10]

Minister for Enterprise, Trade and Innovation (Deputy Batt O’Keeffe): Information on Batt O'Keeffe  Zoom on Batt O'Keeffe  Foreign direct investment industries are located in each county in the State, and in the Shannon Free Zone. The greatest concentration of FDI industries is in Dublin.

Table 1 shows the number of foreign companies supported by IDA on a county by county basis and by Shannon Development in the Shannon Free Zone in each year of the past 10 years.

In the same 10 year period, a total of 261 IDA supported companies have been set up, while 28 FDI companies have been established in the Shannon Free Zone.

In the past 5 years a total of 106 IDA supported companies have been set up throughout the country, while 8 Shannon Development supported companies have been set up in the Zone. Table 2 shows, on a county by county basis, the number of IDA supported companies which have been set up in each year of the 5 year period 2005 to 2009.

IDA is fully committed to securing a balance in regional development and one of the targets set in the Agency’s Strategy “Horizon 2020”is that in the period 2010 to 2014, 50% of new or expansion investments will be located outside of Dublin and Cork.

Frequently, competition for Foreign Direct Investment comes not from other countries but from city regions with populations in excess of one million people. Dublin is the only recognised city region in Ireland that meets this criterion. If FDI is to continue to contribute to balanced regional development the other regions of the country must be promoted as regions of scale with urban centres that provide the range of infrastructure and services that high value invest[903]ment projects demand. This objective is being pursued under the National Spatial Strategy. IDA continues to vigorously promote the regions to potential investors.

Table 1: showing the number of foreign companies supported by IDA on a county-by-county basis and by Shannon Development in the Shannon Free Zone in each of the past 10 years.

County 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Carlow 8 8 9 9 8 8 8 7 9 9
Cavan 11 10 9 8 8 7 5 5 5 5
Clare 13 12 11 10 10 10 10 10 10 9
Cork 140 138 141 141 144 145 143 141 135 134
Donegal 15 14 14 14 14 14 15 14 14 13
Dublin 670 618 544 519 500 499 505 521 504 482
Galway 53 52 56 57 57 55 53 52 51 48
Kerry 21 21 20 21 19 16 15 15 15 14
Kildare 32 32 31 31 30 31 31 29 28 26
Kilkenny 8 9 9 7 7 7 7 6 5 4
Laois 5 6 5 5 4 4 4 4 4 4
Leitrim 5 6 6 6 6 6 6 6 5 5
Limerick 42 42 41 43 39 39 37 41 42 39
Longford 7 8 7 8 7 7 7 8 8 7
Louth 25 22 19 19 18 19 19 20 20 22
Mayo 25 24 25 23 21 20 19 19 19 18
Meath 18 18 18 16 16 16 16 16 15 14
Monaghan 7 8 9 9 7 7 7 6 6 6
Offaly 13 12 11 10 10 10 9 8 8 7
Roscommon 8 8 8 8 9 9 8 8 8 8
Sligo 22 22 25 25 23 24 22 19 20 20
Tipp North 8 7 5 6 6 6 5 4 4 4
Tipp South 12 12 12 12 12 12 11 12 12 11
Waterford 35 35 35 35 33 33 34 33 32 32
Westmeath 19 18 18 18 17 19 18 20 20 18
Wexford 16 13 13 12 12 12 11 11 11 11
Wicklow 26 25 24 25 23 22 20 19 18 17
Shannon Free Zone 84 84 82 79 72 69 66 64 65 60

Table 2 showing, on a county by county basis, the number of IDA supported companies set up in each year of the 5 year period 2005 to 2009.

County 2005 2006 2007 2008 2009
Cavan 0 0 0 2 0
Clare 0 0 0 0 0
Cork 3 3 2 3 4
Donegal 0 2 1 0 0
Dublin 9 6 11 11 7
Galway 0 1 2 1 5
Kerry 0 0 0 0 1
Kildare 1 0 0 0 0
Kilkenny 0 0 0 0 0
Laois 0 0 0 0 0
Leitrim 0 0 0 0 0
Limerick 1 0 4 4 0
Longford 0 0 1 0 0
Louth 0 2 2 1 3
Mayo 0 0 0 0 0
Meath 0 0 0 0 1
Monaghan 0 0 0 0 0
Offaly 0 0 1 0 0
Roscommon 0 0 0 0 0
Sligo 1 0 0 1 0
Tipp North 0 0 0 0 0
Tipp South 0 0 1 0 0
Westmeath 2 0 3 1 1
Waterford 1 0 0 0 1
Wicklow 0 0 0 0 0

  1693.  Deputy Arthur Morgan  Information on Arthur Morgan  Zoom on Arthur Morgan   asked the Minister for Enterprise, Trade and Innovation  Information on Batt O'Keeffe  Zoom on Batt O'Keeffe   the areas that have been most affected by the withdrawal of foreign direct investment in each of the past ten years, in terms of job losses and by county; and if he will make a statement on the matter. [31940/10]

Minister for Enterprise, Trade and Innovation (Deputy Batt O’Keeffe): Information on Batt O'Keeffe  Zoom on Batt O'Keeffe  The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the industrial development agencies. Data is compiled on an annualised basis and is aggregated at county level. The number of jobs lost in IDA supported companies, on a county by county basis, in each of the past 10 years is set out in the attached tabular statement.

Each year an average of 7-8% of jobs within the IDA portfolio are lost as part of the normal business lifecycle. The reasons for this include competitiveness, market downturn, global economic trends and business model re-structuring, particularly as a result of merger and acquisition activity. However in 2009, in addition to the normal level of job losses, many IDA client companies announced significant reductions in their global workforces. Ireland was not immune to these changes with net employment within IDA supported companies falling by 13,400 or c.10% from the previous year. In excess of 3,500 of these job losses resulted from two high profile companies which included 1,900 losses in Dell, Limerick and approximately 1,300 at SR Technics in Dublin. It is also noteworthy that 82% of job losses were as a result of downsizing, not closures. Maintaining a large number of existing multinationals here will help position Ireland as a competitive location when the global economy recovers from 2010 onwards.

While it is clear that we are operating in a very difficult economic environment, there are still investment opportunities in global markets and IDA will continue to compete vigorously for projects for Ireland. Indeed IDA’s performance for the first half of 2010 has been very encouraging and the Agency is on track to achieve ambitious Foreign Direct Investment (FDI) targets set out for 2010. Up to mid July 2010, IDA already secure 63 new investments, of which 20 were from companies setting up operations in Ireland for the first time, 22 were expansion investments from existing client companies and 21 of the investments were in Research and Development. A number of key trends are driving the current success in FDI in Ireland includ[905]ing the growth in the US technology sector, growing trends in Cleantech, an improvement in Ireland’s competitiveness, currency movements and an overall global recovery in FDI.

Table showing the number of job losses in IDA supported companies on a county by county basis in each of the past 10 years

County 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Carlow 56 24 49 49 277 33 110 262 28 75
Cavan 34 59 42 76 64 127 63 2 26 56
Clare 56 142 203 43 22 34 52 35 16 93
Cork 685 1,810 2,057 1,318 785 796 1,159 1,692 1,488 2,432
Donegal 341 518 123 496 217 357 644 116 48 29
Dublin 3,140 8,214 5,717 5,242 4,936 4,169 2,374 4,098 4,196 6,805
Galway 368 837 1,294 650 482 193 563 619 764 1,178
Kerry 87 57 651 321 284 232 161 47 108 416
Kildare 62 849 581 471 408 148 439 717 584 1,491
Kilkenny 128 50 15 98 4 9 20 53 9 112
Laois 34 59 43 17 85 2 48 43 20 16
Leitrim 73 2 19 5 28 187 117 50 43 30
Limerick 457 1,044 1,583 633 605 135 256 452 694 2,519
Longford 123 30 49 5 36 30 20 79 88 74
Louth 759 1,305 276 410 117 128 287 172 433 272
Mayo 121 228 469 137 400 243 102 83 126 189
Meath 106 124 140 95 29 14 399 41 83 159
Monaghan 20 18 31 146 40 11 3 16 14 14
Offaly 364 441 230 108 46 20 75 91 47 118
Roscommon 4 22 142 141 36 11 15 30 1 89
Sligo 157 226 80 265 181 117 149 255 64 137
Tipp North 52 116 494 278 4 83 48 100 46 188
Tipp South 25 39 36 267 32 58 130 15 26 93
Waterford 636 233 300 224 423 579 350 183 483 569
Westmeath 116 171 178 719 254 66 312 245 264 527
Wexford 131 272 98 180 151 38 50 59 73 89
Wicklow 284 574 242 56 453 1,097 293 68 296 258
TOTAL IDA 8,419 17,464 15,142 12,450 10,399 8,917 8,239 9,623 10,068 18,028

  1694.  Deputy Arthur Morgan  Information on Arthur Morgan  Zoom on Arthur Morgan   asked the Minister for Enterprise, Trade and Innovation  Information on Batt O'Keeffe  Zoom on Batt O'Keeffe   the figures for foreign direct investment here for each of the past ten years; the figures for investments won and lost by the Industrial Development Agency in this ten year period; and if he will make a statement on the matter. [31941/10]

Minister for Enterprise, Trade and Innovation (Deputy Batt O’Keeffe): Information on Batt O'Keeffe  Zoom on Batt O'Keeffe  Foreign direct investment has been a major contributor to Ireland’s development in the past 50 years. Nearly a quarter of a million quality Irish jobs exist today because of our long term commitment to make Ireland a location of choice for multinational companies. At present there are 980 IDA supported multinational companies established here. These companies account for 70% of total exports (€110bn) and are responsible for €19.1bn in direct expenditure within the Irish economy and account for 55% of the total corporate tax take.

[906]Over the past 10 years since 2000, the number of foreign direct investments approved annually has risen from 96 in 2000 to an all time high of 130 in 2008. In 2009, that figure dropped back to 125, a drop of 4%, whereas FDI globally dropped by 30%. Research, Development and Innovation plays a significant role in building Ireland’s “Smart Economy”. RDI projects now account for almost 50% of all FDI investments. In the past 3 years alone (2007 to 2009), IDA has secured investments with total future capital of €5 billion plus €1.2bn in R&D.

Table 1 sets out the number of foreign investments secured annually in each of the years 2000 to 2009.

Every year an average of 7-8% of jobs within the IDA portfolio are lost as part of the normal business lifecycle. The reasons for this include competitiveness, market downturn, global economic trends and business model re-structuring, particularly as a result of merger and acquisition activity. In the 10 year period 2000 to 2009 a total of 462 IDA supported companies closed with resulting job losses.

Table 2 shows the number of closures together with the subsequent job losses in each year 2000 to 2009.

Table 1: showing the number of foreign investments secured annually by IDA in each of the years 2000 to 2009.

DATA Type 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
No. of Projects App’d Greenfield 64 26 31 33 37 41 39 30 35 39
No. of Projects App’d Expansion 32 14 24 31 33 30 32 39 39 24
No. of Projects App’d RD&I 39 36 50 54 45 56 62
No. of Projects App’d TOTAL 96 40 55 103 106 121 125 114 130 125

Table 2: showing the number of closures in IDA supported companies in together with the number of job losses in each year 2000 to 2009

Year Number of Closures Perm Employmentat Year of Closure
2000 44 2,860
2001 63 6,954
2002 56 3,448
2003 40 2,964
2004 50 2,395
2005 29 1,687
2006 46 1,759
2007 42 2,173
2008 40 1,779
2009 52 2,950


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