The Government will unveil an initiative today aimed at generating up to €500 million in new business for Irish companies from multinational investors in Ireland.

The initiative to boost supply chain links is part of a new action plan for jobs to be unveiled today by Taoiseach Enda Kenny, Tánaiste Eamon Gilmore and Minister for Jobs Richard Bruton.

Mr Bruton sees this as a big opportunity to stimulate Irish business – and jobs, in due course – without additional exchequer spending.

Potential beneficiaries include Irish pharmaceutical and medical devices companies which are deemed to have scope to improve their links with Irish-based multinationals in the sector.

The Government anticipates, however, that firms in all sectors in all regions can benefit.

The new drive to expand business between multinational and Irish firms will be orchestrated by IDA Ireland and Enterprise Ireland, the State bodies with respective responsibility for inward investment and indigenous exporters.

Multinationals based in Ireland currently source goods and services worth €80 billion from global industry, about €11 billion of which is provided by Irish firms. Today’s announcement of the Government’s action plan for jobs will include some specific job creation targets, Mr Bruton has said.

Supportive environment

Other measures would help improve the operating environment, supporting the creation of jobs by the enterprise sector.

“The objective of the action plan for jobs process is to create a supportive environment for businesses so that they can retain existing jobs and create new ones.”

Mr Bruton will be joined by Mr Kenny and Mr Gilmore at the announcement of the plan in Dublin.

He told the Dáil last night he had been working with his Government colleagues on compiling the plan in recent months.

Mr Bruton has instructed the IDA and Enterprise Ireland to set up 120 introductions for Irish businesses with multinationals aimed at adding contracts worth €500 million.

“We have all these world-leading multinationals in Ireland providing great employment, but there is also a real opportunity for Irish businesses to win more business from their €80 billion supply chain,” said a Government source.

Ambitious targets

“In order to deliver on this the Minister is setting ambitious targets for Enterprise Ireland and IDA and monitoring delivery on a quarterly basis.”

While the Government is expected to argue today the 2012 action plan was instrumental in the creation of 12,000 new private sector jobs, the new plan reflects the view that a greater effort is required.

The plan last year included 270 “actions” to be taken in 15 departments and 36 State agencies. Latest figures show 249 of these were executed.

In Government circles, initiatives to provide credit guarantees to support borrowing by companies last year are deemed to have worked well.