Foreign Direct Investment
posted by Roisin McNamara on
Ireland has always been a constant attraction to foreign firms. Is it our tax incentive schemes, educated workforce or is it we are at the gateway to Europe? Ireland has a transparent and simple 12.5% corporate tax rate on trading income. We also have an extensive and expanding network of high quality tax treaties.
Our skilled and education workforce; the availability of skilled labour and for flexibility and adaptability of workforce. Ireland has a young, well-educated labour force and scores very highly on labour productivity. We speak the English language and we are located at the edge of Europe.
Whatever the answer is Ireland continues to attract FDI.
There is no doubt that FDI has had a major impact on Ireland’s economy over the last few decades. This is true even more so since it helped soften the impact of the domestic economic crash in Ireland in 2008.
There are numerous multinational companies here in Galway alone. Whilst some of these companies have cut their Irish workforces over the last few years, they still employee a large percentage of local people
There is also the positive spin off from these foreign companies locating here in Ireland. There are the linkages to more indigenous firms, new start-up firms and so on. From FDI, directly and indirectly, it provides new opportunities for other entrepreneurs via manufacturing contracts, provision of services etc, leading to new ventures and start-ups.
It can be stated that Ireland as a country would be in a worse state without FDI to in fact ‘prop’ us up.
According to the Department of Jobs, Enterprise and Innovation, Ireland has performed significantly well in the economic conditions. Over 18,000 new FDI jobs have been created in the last three years, which highlights our proven track record. The Department hopes that these jobs will generate spin off and contribute to the Irish economy.
The Department is focusing on ensuring Ireland is the location of choice for innovative activities and enterprises.
It is without a doubt that our labour force is the cornerstone of our success. Ireland needs to be the place that encourages talent to flourish, develops the people and attract talent from around the world. Ireland needs to be seen as a competitive and attractive to work, live.