‘Ireland must reduce reliance on American FDI firms’, says Limerick TD

IRELAND should reduce its reliance on foreign direct investment from the United States of America, a local TD has said.​

There are almost 12,000 jobs in foreign companies based in Limerick alone, and Limerick Sinn Fein TD Maurice Quinlivan has warned the current concentration poses a threat to the local economy.

He called on Enterprise Minister Heather Humphreys to diversify where new jobs are coming in from.

Mr Quinlivan, who is his party’s spokesperson on business and innovation, said: “Information provided to me in response to a parliamentary question highlights a significant reliance on FDI companies originating from the United State of America,” he said.

He said of the IDA-backed foreign direct investment jobs in Ireland, some 53% are from across the pond.

“This high concentration from the United States is in stark contrast to the representation from other parts of the globe, with just seven companies originating from the entire continent of Africa, and only two companies, out of 1,444, coming from South America,” Mr Quinlivan said.

He acknowledged the importance of the ties Ireland has with America, but still believes having such a high concentration of firms is a cause for concern.

“According to the 2018 Revenue Commissioner’s Annual Report, foreign owned multinationals paid 77% of Irish corporation tax take in 2018. This should be a source of major concern, as these companies are traditionally more mobile than indigenous businesses and can move or scale back their operations here suddenly, depending on where the best incentives are internationally,” he added.

There are 56 IDA client companies in Limerick.