2026-06-16

146. Deputy Tony McCormack asked the Minister for Enterprise, Tourism and Employment the measures being taken to improve Ireland's competitiveness in order to attract and retain foreign direct investment, FDI; and if he will make a statement on the matter. [45439/26]

149. Deputy Tom Brabazon asked the Minister for Enterprise, Tourism and Employment the action he is taking to increases Ireland's attractiveness as a destination for FDI; and if he will make a statement on the matter. [45635/26]

Competitiveness is so important to Ireland as an open market economy. What measures have been taken by the Department to improve Ireland's competitiveness to attract and retain FDI? Will the Minister of State make a statement on it?

I propose to take Questions Nos. 146 and 149 together. FDI is a key element of our economic strategy, with investments by IDA Ireland client companies consistently generating high-skilled jobs nationwide. The Department works closely with IDA Ireland and other stakeholders to ensure a strong pipeline of FDI into Ireland. In light of the rapidly evolving global landscape and given the challenging international economic and trading environment, the Government is implementing a whole-of-government response to the challenges Ireland is facing, as set out in the Action Plan for Competitiveness and Productivity. The action plan strengthens Ireland's attractiveness for FDI by improving the business environment through measures on innovation, skills, infrastructure and cost competitiveness, ensuring Ireland remains a stable, competitive and future-ready location for global investors. Complementing this approach is IDA Ireland's own strategy, Adapt Intelligently: A Strategy for Sustainable Growth and Innovation 2025–29. This strategy identifies clear opportunities for Ireland to win investment in key growth areas such as digitalisation and artificial intelligence, semiconductors, health and sustainability. This strategy reaffirms IDA Ireland's focus on maximising opportunities for existing and new clients to invest in regional locations. Building on the excellent performance over the previous strategy, IDA Ireland is targeting 55% of investments in regional locations over the five years of the current strategy. Last year the Department launched Silicon Island: Ireland's National Semiconductor Strategy, which aims to make Ireland a global leader in semiconductors. The strategy promotes national policies and investments to further stimulate chip design and manufacturing capabilities. Later this year, we will also launch a national life sciences strategy, reflecting the level of importance of this sector to both foreign and domestic companies and the opportunities for its further development. Investment remains strong. A total of 323 investments were secured by IDA Ireland during 2025, representing a 38% increase on the previous year and the highest number of projects on record secured by the agency. Employment in IDA Ireland client companies increased by 1.5% year on year in 2025 to 312,400. The Government is fully aware of the competitiveness challenges this country faces as we continue to compete for FDI. We are taking the necessary steps to position Ireland for the future and we will continue to place cost, planning, energy and research and development at the centre of forward-looking policymaking. Competitiveness is a matter for all of Europe. The Government announced last week our Presidency priorities, which are centred on three key areas: competitiveness, values and security. My colleague, the Minister, Deputy Burke, will assume the chair of the EU Competitiveness Council in July and we will have an opportunity then to progress really important files to align with European ambition in this regard.

I welcome the Government's continued focus on competitiveness and attracting investment through IDA Ireland. It is clear that the international trading environment has become more challenging in recent years, with increasing trade barriers and growing competition for investment globally. Given Ireland's reliance on international trade and FDI, will the Minister of State outline the key actions being taken across government to strengthen our competitiveness? In particular, what progress has been made in areas such as infrastructure delivery, skills development and regulatory efficiency, which are increasingly important factors for companies considering Ireland as a location for investment? As sure as day follows night, and as we see in the economy, after every boom there is a recession. Things are getting tight at the moment. We are no longer in a position of comfort. Companies from other parts of the world will be looking at Ireland from a fiscal point of view, so what is the Minister of State's Department doing to make sure we remain as competitive as possible?

FDI decisions are going to be driven by talent, innovation and, ultimately, infrastructure. When I say infrastructure, I am talking about public transport, housing and everything that goes into the quality of life of the employee because, ultimately, companies are going to locate where the talent wants to be. In Galway, as I have mentioned previously, we have a significant medtech sector. It is absolutely incredible what has happened there over the past 30 years. That does not just happen. We need to see a continued push to drive more investment into Galway and into our medtech sector. Beside the site where Dexcom Ireland has been developed are additional IDA lands that are prime for development for more jobs for east Galway. That is what I push for here this evening.

I thank the Deputies for their questions. I absolutely agree that competitiveness is not just for today; it is about preparing for the next decade. That is really important. That is why the Government is developing Enterprise 2035, which will be a long-term strategy focused on enterprise growth while also ensuring we have widespread job creation throughout the regions. It will be focused on skills, lifelong learning, innovation, access to finance, digital and green transitions, and building resilience against the uncertainty within our global economy. We have seen from global shocks how exposed we are. We have had the trade and tariff wars. We have had the challenge of supply chain disruption with the Middle East. I contend, in the knowledge that I am speaking to two rural TDs, that we are very much focused on ensuring the Government is investing but that investment benefits every region in the country. That is why over 57% of all new investments were based in regional Ireland. That is not accidental; that is a result of Government policy. It is also about targeting regional property development and the next-generation sites to ensure they are serviced and brought forward, but also that we have strategic planning from IDA Ireland and that IDA Ireland is considering all the four corners and not just at our main cities and thoroughfares. This is about ensuring the high-value sectors Deputy Dolan talked about and the life sciences and semiconductor sectors, which create high-quality jobs and that anchor within regions, bring considerable employment but also act as a catalyst for indigenous companies to service the big multinationals. That is very important. We need to continue to work across government to make sure that happens.

I welcome the strong performance in attracting investment into Ireland and the commitment to balanced regional development. As we look at the next phase of growth, it is important that counties such as Offaly and the wider midlands continue to benefit from new investment opportunities. Will the Minister provide an update on the measures being taken to support regional locations in competing for future investment? We are grateful in Offaly, particularly in Tullamore, for the investment by IDA Ireland in lands for a new IDA Ireland park. What progress has been made in getting the infrastructure into this park and what progress has been made in strengthening regional enterprise infrastructure, skills provision and site development so areas such as the midlands will be well positioned to secure a greater share of future jobs and investment?

I welcome the Minister of State's mention of the next-generation sites. As he knows, outside Oranmore there is potential for one of the country's most strategic sites. It was reported in the Business Post over a year ago that the Minister, Deputy Burke, was to bring a memo to the Cabinet about potential investment in Galway to upgrade the infrastructure on Mutton Island and wastewater infrastructure, and to provide a new link off the motorway and a new rail stop at the site. Can I have an update? Where is that currently? Did that memo ever come to Cabinet? Will the Minister be able to provide an update about the prospects of a company selecting that site for a chip fabrication plant or whatever the preferred option is?

I again thank the Deputies for their questions and their support for continued investment in the regions of Offaly and Galway. The Minister is continuing to progress the next generation sites. That is important. He is progressing the west, which is important, initially. I hope we will have an announcement shortly in that regard. It is important that what we announce is serviced. There is a plan to ensure the site can be energised and there is access to utilities, critical services, etc. At Government level, that memo has been brought and approved, but not yet announced. With regard to regional balance, the action plan for competitive productivity is important for how we continue to deliver the skills and talent within the regions. Offaly has had recent success with Bord na Móna's collaboration with Amazon. It is important to build on tech, data centres and everything that goes with them for job creation. It is also important that the infrastructure and planning continue to evolve to meet the needs of the local regions and areas. There are various strategies that the Government is currently working on and that will be brought forward, such as the new national semiconductor strategy and the new life science strategy. There will also be investment in infrastructure through the national development plan. These are all important competitive measures that will set Ireland apart for future investments in our regions. We are competing globally. There is no denying that it has been a challenging period to attract more international companies here to Ireland. IDA Ireland is doing a great job and the Minister, Deputy Burke, is actively working with the agency on a day-to-day basis.