IRELAND MUST IMPROVE what it has to offer multinational companies if we are to compete for foreign direct investment (FDI) on the global market, according to the government’s FDI masterplan.

The Policy Statement on Foreign Direct Investment in Ireland, launched by Jobs Minister Richard Bruton this morning, has called for a focus on four ways to attract multinational companies into the country:

• Talent – make Ireland internationally renowned for problem-solving, creativity and adaptability of workforce
• Technology – although “we cannot be world-leaders in all areas,” today’s announcement seeks to be world-leading in research and innovation in certain key areas
• Quality of life – play to the strengths of different regions, offer “great places to live”, and  make Dublin a “vibrant capital city” with a dynamic start-up community
• Sectors – identify and pursue emerging sectors and industries

Addressing the issue of attracting companies beyond Dublin and throughout Ireland, Bruton told the media:

You have to have the living environment. You have to have the schools and the houses…

If we want to get regional spread, we create the regional environment that is a magnet to those companies.

‘No longer enough to mark Ireland out’

The policy aims to create 7,000 new jobs a year by 2020 in multinational companies, as part of the the government’s strategic growth plan to replace every job lost in the crisis and attain full employment in five years’ time.

Launching the masterplan, Bruton noted some recovery in attracting investment since the crisis, but pointed to international competition as a major challenge:

In the three years 2011-2013 we attracted an average of more than 6,000 extra jobs per year… The indications from the first six months of this year are than investments are up significantly…

The FDI landscape has changed dramatically in recent years…

International competition has increased dramatically, and many of the tools we relied on previously – cost competitiveness, the high performance of the IDA [Industrial Development Agency], competitive corporation tax regime, State support – are no longer enough to mark Ireland out.

Addressing the media at today’s launch, the Minister laid out the government’s position on the corporation tax regime.

The 12.5% [rate] has been a bedrock of our system.

We have protected that even when the country was under the greatest stress…and what the Minister for Finance has said is that we will compete under fair rules, but we will be competing to win.

Some of the more specific proposals in today’s statement include:

• Keeping the 12.5% corporation tax rate
• Pursuing new FDI sources, such as emerging economies
• Targeting a top-five ranking for Ireland for international competitiveness
• Looking for new forms of FDI, such as joint ventures and high net worth individuals

Scroll down to read the full Policy Statement on Foreign Direct Investment in Ireland.

Read: FDI companies love doing business here – and not just for our corporation tax rate>

‘Highest level of job creation’ through IDA in over a decade>

http://www.djei.ie/publications/enterprise/2014/Policy_Statement_FDI_Ireland_July_2014.pdf