Alan Dillon (Mayo, Fine Gael)
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33. To ask the Minister for Finance the status of the strategy for the development of Ireland’s international financial services sector action plan 2022; and the way work by both IDA Ireland and Enterprise Ireland is supporting regional development in this sector. [9670/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Ireland for Finance Action Plan 2022 was approved by the Government at its meeting on 25 January 2022. My colleague, the Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Deputy Seán Fleming, published Action Plan 2022 on 3 February 2022.

One of the five themes Minister Fleming has identified for Action Plan 2022 is ‘Regionalisation and promotion’. IDA Ireland and Enterprise Ireland hold pivotal roles in delivering the regional policy commitments in the Ireland for Financestrategy. Currently, employment is at the highest level it has ever been in the international financial services sector, with over 30 per cent of these jobs located in the areas outside Dublin. Although it is the business owners and investors who are the final decision makers on where to establish operations, the State’s enterprise agencies provide information, financial supports, and some of the physical infrastructure to enable and encourage balanced regional development. IDA Ireland is focused principally on promoting regional locations in Ireland to investors in international markets, and Enterprise Ireland provides a range of developmental supports to regionally based Irish owned companies in the sector, at all stages of development, who are looking to grow in international markets. Both enterprise agencies also provide valuable inputs to the development of policies and programmes by other state bodies in areas such as planning and education to ensure that policy on regional development is coordinated and well informed.

I would highlight to the Deputy that regional development is at the centre of IDA Ireland’s new strategy ‘Driving Recovery and Sustainable Growth 2021–2024’, which will target half of all investments for regional locations. As such, IDA Ireland is committed to the pursuit of more balanced, compact regional development, which can deliver complimentary efficiency and equity gains, with the overall impact of helping to advance national development. Underpinning this strategy, IDA Ireland will target potential investment that advances regional development, as follows:

(a) win investment that drives recovery and supports development in regional locations,

(b) partner with existing regional clients to transform through innovation and upskilling,

(c) seek to support transformation, spill overs, and linkages through cluster initiatives,

(d) collaborate with clients and stakeholder to facilitate remote working opportunities, and

(e) Continue to roll-out a regional property programme essential to regional delivery of investments.

During 2021, IDA Growth in Regions was particularly strong with 53% or 133 projects of the 249 investments won going to regional locations. Employment growth was recorded in every region of the country. IDA continues to prioritise regional locations for the IFS sector and has won a number of significant regional investments since 2020 across the sub-sectors of Fund Servicing, Insurance, Fintech and Payments. The increase in remote and hybrid working is increasing access for IDA clients to a broader national talent pool and this presents an opportunity for further regional development.

Strengthening regional enterprise development also remains a key focus for Enterprise Ireland as part of its new strategy for 2022 to 2024. Its responses will reflect the varying needs and opportunities of enterprise at all stages of development, across different regions including financial services and fintech. This will encompass working directly with new and existing companies throughout the regions, supporting increased enterprise collaboration, and working in collaboration with regional stakeholders. Enterprise Ireland’s supports are integrated with a national network of nine regional offices in Ireland and over 30 Enterprise Ireland offices in international locations that facilitate access to more than 60 countries.

At the launch of the Ireland for Finance Action Plan for 2022, Minister of State Fleming announced that the Department of Finance will be carrying out a mid-term update of the strategy to maintain the growth of the international financial services sector. The review will run alongside the implementation of the 2022 Action Plan, will inform the prioritisation of work and strategic direction in the future while building on the success achieved to date.