Finance Minister Michael McGrath confirms ‘significant’ foreign investments on the way this year

At the World Economic Forum in Davos, Mr McGrath told the Irish Independent that talks with several companies “are at a very advanced stage” backed by IDA Ireland, the State’s inward development agency.

However, Mr McGrath and IDA chief Michael Lohan are warning against any U-turns on tax, housing or other business-related policies following the next general election, insisting on “stability” and “continuity” to keep the economy afloat.

Wars in the Middle East and Ukraine, high interest rates, housing shortages and growing anti-migrant violence are stalking the Irish economy as the coalition looks towards the next election, which must be held by March 2025.

“I am certain there will be significant further foreign direct investment coming into Ireland over the months ahead – certainly across this year and beyond,” Mr McGrath said. “A number of discussions are at a very advanced stage between the IDA and different companies which, of course, remain confidential until they are finalised.”

The number of investments secured by IDA Ireland was up 2.5pc last year, on 2022, but there was a net jobs loss of 1,000 on the back of a global tech slowdown.

I am certain there will be significant further foreign direct investment coming into Ireland over the months ahead

Mr Lohan is forecasting net job gains this year on the back of previous investments, but said “consistency in policy is critically important”.

“There will always be changes in policies and in tax policy in particular but we need to be mindful of what those changes are from an enterprise and FDI perspective.”

Policy matters, Mr McGrath said, adding that Ireland would need to “evolve and adapt but not in a fundamental way”.

“Some companies who are considering further investment into Ireland did ask what our plans are for the future,” he said. “They do want to be reassured that there won’t be any sudden U-turns in major policy areas. Without getting into issues around elections or different political parties, I can say with absolute certainty that stability of policy does matter to multinational companies, and influences their willingness to invest.”

Public Expenditure Minister Paschal Donohoe said Sinn Féin policy on housing would lead to “fewer homes and higher rents” and said that it was not inevitable that the opposition party would win the next election.

“Sinn Féin see the economy as something to be taken from, rather than added to,” Mr Donohoe said.

“You’ll never see a Sinn Féin politician stand up and talk about jobs, talk about a growing economy – whereas it’s jobs and a growing economy that creates the money to allow us to do everything else.

“I’m making the case that this government can get re-elected. I believe that the three parties will go into the next general election as three separate political parties, as they did in the last general election, and make the case to the people of Ireland. but I believe this government can get re-elected.

“I think 2024 is going to be a really exciting year. And I look forward to the election and making the case to the people in Dublin Central and beyond. But no, I don’t know when it will be.”