Feargal O'Rourke, chairperson of IDA Ireland, has today appeared before the Oireachtas Enterprise Committee for the first time since taking up his new role.
Mr O'Rourke worked with many US companies involved in Foreign Direct Investment while in his role at PWC.
IDA Ireland marked its 75th anniversary last week. Its mission is to win and develop foreign direct investment.
"IDA Ireland's mission is to partner with multinational companies to win and develop foreign direct investment, providing jobs, economic impact, and opportunity for the people of Ireland," its new chairman said.
"The success of IDA Ireland is systemically important to the wellbeing of the Irish economy and - by extension - Irish society," he said.
"IDA clients directly account for 11% of total employment nationally and make a deep economic contribution that ranges from an annual spend of €35.8 billion on payroll and Irish sourced goods and services, to €15.5 billion on capital expenditure and over €7 billion on in-house RD&I. These figures tangibly demonstrate the scale and scope of FDI in Ireland today," he added.
Mr O'Rourke said regional development was a key part of IDA Ireland's strategy with half, or 132 investments, being made outside Dublin last year.
Sinn Féin's Louise O'Reilly asked Mr O'Rourke about the geographic spread of investment, asking could the focus be taken off the US.
Mr O'Rourke said the US will always be the number one priority market, but added that the IDA would continue to invest in China and Japan.
"We have 40 companies from China operating in Ireland, as against 600 from the US. There is no denying it, when it comes to inward investment, the US is the 800 pound gorilla and will continue to be in the foreseeable future."
He said foreign investors looked at Ireland's access to the EU Single Market, talent pool and business attractiveness. He said these were common interests regardless of where businesses were located.
"We will continue to heavily focus on the US, but recognise that there's a world out there that we will continue to tap," he stated.
Deputy O'Reilly also asked Mr O'Rourke if the shortage of housing was having an effect on FDI.
"This is a societal issue, and the impact on FDI is of a secondary or tertiary nature," he said in reply.
He said housing, the grid, energy and water were all issues facing FDI, but he said investment had gone up last year nonetheless.
Mr O'Rourke said the Government's target of 30,000 houses was helping.
"If you look at other European countries, they are struggling with that affordable housing issue", he said.
On Artificial Intelligence, Mr O'Rourke said some jobs will be eliminated by AI, but it will also enable some people to move higher up the value chain.
Fine Gael's David Stanton asked about the push by some companies to return staff to the office full-time.
"I don't think we will ever go back to people in the office from dawn til dusk, it's just not going to happen," Mr O'Rourke said.
In light of the fact that Ireland is effectively at full employment. Mr O'Rourke said that he employee has the upper or the whip hand and they have the right to say this suits me better."
He said some companies are offering in-day flexibility, but admitted that some sectors, like financial services, were pushing more for a return to the office.
The best companies would recognise that a happy worker is a good worker, and would give them the flexibility they need, he added.
On jobs losses in the tech sector, PBP Profit-Solidarity TD for Cork North Central asked about 500 expected job losses at VM Wire in Ballincollig and Blizzard in Blackpool.
Mr O'Rourke said this was the third or fourth wave in his career of tech contraction.
"Despite the high-profile layoffs, overall the numbers stayed the same," he stated.
He said he suspected other employers would hire many of them, as it was very difficult to get talent in the tech sector at the moment.
