Thursday 14 December 2017

Government has spent €10.5m on 18 overseas IDA offices

Gordon Deegan

THE Government has spent more than €5m to date running the IDA's offices in the US, it has been revealed.

Enterprise Minister Richard Bruton has confirmed operating the development agency's six offices there ran to €5.4m, while the IDA's total of 18 overseas bureaus cost €10.5m to maintain.

The IDA has functions in New York, Boston, Chicago, Atlanta, Irvine and Mountain View in California, London, Paris, Frankfurt, Tokyo, Shanghai, Shenzhen, Singapore, Mumbai, Bangalore, Australia, Russia and Brazil.

"It is not possible to give a breakdown of the cost of each individual office, but the total costs associated with the six offices in the US are €5.4m; the three European offices are €2.5m; and the nine remaining offices in Asia and growth markets are €2.5m," he said.

Last year, the IDA enjoyed its best year since 2002 with client companies generating 13,000 new jobs last year.

Negotiations

In response to a Dail question from Sinn Fein's Martin Ferris on the issue of overseas office costs, Mr Bruton explained: "The IDA's network of overseas offices is required to underpin the agency's overall strategic plan, Horizon 2020.

"Its overseas offices are the first point of contact for potential new investors into Ireland and also provide ongoing contact between the agency and its existing clients."

He added: "By their nature multinational corporations are located in various regions globally. The sourcing of any individual project is a team effort involving negotiations with more than one branch of the multinational corporation."

The US remains a key IDA market, with 72pc of foreign direct investment in Ireland originating from the US. Europe is the next biggest market, with Germany leading the way followed by the UK and France.

The IDA has 1,004 client companies which provide full-time employment to more than 130,000 people. Just over half of the companies are based in the US. The European market accounts for 399 client companies providing employment to 29,000 people while the remaining Asian and growth markets account for 90 client companies employing 5,600 people.

So far this year, 49 investment announcements have been made with the potential to create almost 5,500 jobs, and 37 of these investments were from US companies.

Irish Independent

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