Foreign Direct Investment in Ireland 2019

Source Publications: Business Register OFATS Publication

Figure 6.1 shows the main OFATS outputs from the business register shown by which data relates to the Redomiciled PLCs and which relates to native Irish firms. As seen, these Redomiciled PLCs have had a significant effect on our foreign affiliate statistics. As most of their operations are abroad, they have significant employment outside of Ireland. The graph also shows approximately 296 thousand persons employed by native Irish firm investment abroad. This data was sourced from the 2018 CSO Business Register OFATS Survey.

Figure 6.2 provides a breakdown of the employment of native Irish firm investment abroad. By and large, the two biggest countries for Irish investment associated employment abroad are the United Kingdom and the United States.

Figure 6.3 shows the employment effects of these Redomiciled PLCs in Ireland. Employment for these firms has grown significantly over the course of the period shown. This data was gathered from P35 data from Revenue. In 2018, the number of persons employed by these firms domestically was over eleven thousand.

In 2020, the net income of redomiciled PLCs was €2.9bn. Figure 6.1 shows the effect of the net income of redomiciled PLCs in the balance of payments primary income figures. Users often refer to primary income as the repatriated profits of multinationals based in Ireland.

Figure 6.5 shows the effects of the Redomiciled PLCs on the overall net income for Ireland’s international accounts. The positive effect reduces the deficit of income that Ireland has experienced at an increasing rate over the course of the period shown.

Figure 6.6 shows the effects of the Redomiciled PLCs on Irish FDI investment abroad. When analysed by Ultimate Controlling Parent (looking at where the investments originate from), we can see that almost half of Irish investment abroad originates from these Redomiciled PLCs. The graph also shows significant gains made by native Irish firms in establishing operations abroad over the course of the period shown.

As none of the shareholders own more than 10% of the equity in these companies, their liabilities are classified in the IIP as ‘portfolio investment – equity’. Proportionally, they have a smaller impact on this sub-heading as portfolio investment liabilities are dominated by investment funds. Redomiciled PLCs data, compared to Ireland's total portfolio investment liability, is shown in Figure 6.7.

Figure 6.8 shows the tangible fixed assets of the Redomiciled PLCs in millions of euro. The reason for the large variation in these fixed assets is the dynamic nature of the reporting on these companies. A firm may be headquartered in Ireland one year and the next it may leave; in which case, its fixed assets would no longer be considered Irish owned for statistical purposes and show up in this graph. In 2020, the Redomiciled PLCs held over €200 mn in tangible fixed assets domestically.