IDA confident that State can still attract inward investment

There is every reason to remain confident that Ireland can compete effectively for new inward investment over the coming years, Mr Sean Dorgan, chief executive of IDA Ireland, said yesterday.

Speaking after the Foresight Business Breakfast in association with PricewaterhouseCoopers yesterday, Mr Dorgan said the pipeline for new projects was healthier than the circumstances might suggest. "There are a number of significant projects in our pipeline. We haven't won them yet but we're in serious play and we're working very hard at it. We will have business to announce over the next six months," he said.

Mr Dorgan said he could not give specific details on the projects but the IDA had been targeting the pharmaceuticals, healthcare and international services. "We're chasing definite prospects in each of these," he said. Despite yesterday's warning from the OECD on wage rise risks, Mr Dorgan said he felt that wage rise demands were settling down. Maintaining the right flexibility and operating conditions, plus low corporation tax should continue to add to the State's competitiveness, he said. "Corporation tax will be a broader product from 2003 because all corporate trading processes, not just manufacturing and a small number of international services, will have access to the 121/2 per cent rate. That will bring a lot of new business into Ireland in a whole range of service activities that we weren't previously considered for," said Mr Dorgan.

He conceded that a number of challenges remained, such as infrastructure deficits and a fall-off in the take-up of science subjects. But he said he was confident these issues were being tackled.

Despite the big number of job losses in foreign firms operating here, Mr Dorgan said preliminary figures indicated that as many jobs had been created as lost. "What has been gained over the past five years has been held in a difficult year," he said.

As well as seeking new investment, IDA Ireland was working closely with client companies already in Ireland, according to Mr Dorgan. "We have increased the intensity of our relationship with our client companies, to ensure that Ireland can be part of the solution to the problems facing them.

"We also have significantly increased our active visit programmes to many of the companies, particularly by our senior managers, and we are making full use of the range of incentive programmes to secure new projects. For example, our new R&D capability scheme has already delivered 11 significant proposals in the past three months," he said.