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Dáil Éireann díospóireacht -
Tuesday, 18 Feb 2003

Vol. 561 No. 4

Written Answers. - Job Protection.

Eamon Ryan

Ceist:

198 Mr. Eamon Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment the strategy her Department intends to put in place to help maintain traditional manufacturing jobs within Ireland; the estimated number of manufacturing jobs which may be lost over the next five years due to the transfer of companies to lower cost locations; and the way in which Ireland will compete against new entrants to the European Union which can offer similar or lower corporate tax rates while also having a cost base which is a fraction of Irish manufacturing costs. [4558/03]

It is not possible to estimate the potential number of manufacturing jobs that may be lost over the next five years due to the transfer of companies to lower cost locations, as such moves depend on a range of factors and company decisions to which Government agencies are not always party. However, that having been said, and given the open nature of the Irish economy, maintaining our competitiveness will be critical to sustaining and developing the manufacturing sector, both traditional and innovative, in Ireland over the coming years.

The strategy being pursued to maintain Irish industry's position is focused on ensuring that the enterprise sector can continue to compete fully with firms in competitor countries. For Irish firms to compete, the development agencies are working the enterprise base to increase labour productivity in existing firms; encourage innovation in all companies; accelerate the shift towards high-growth, high-tech, high-productivity activities; promote continuous upgrading of the educational and skills profile of the workforce; and promote a deepening of the base of R&D performing firms.

A number of initiatives to sustain the competitiveness of the manufacturing sector in Ireland are currently being pursued. For example, IDA Ireland is working to increase the embeddedness and competitive position of existing foreign companies in Ireland by attracting additional functions to the Irish subsidiary across the full value chain, but with a particular emphasis on research and development, and also by increasing the competence of existing functions.

Enterprise Ireland is working closely with existing clients in the traditional business sectors and is assisting them by providing advice and referrals, operating a dedicated competitiveness fund, developing exports through trade promotions and provision of incubator space, and through a range of new initiatives such as market mentors, training workshops and market visits, which are geared towards clients developing export markets for the first time. In addition, Enterprise Ireland and the other development agencies continue to be active participants in a range of task forces and other working groups established to ameliorate the effects on local communities of downsizing and company closures by identifying new opportunities for enterprise development and working with new promoters to build viable projects.

While the enterprise sector has performed well over the last decade, many of the factors that have contributed to its strong performance can no longer be relied upon to fuel future growth. In order to compete successfully going forward, Ireland requires a business environment that is as conducive to enterprise development as that found in leading and competitor counties. In this context the Government is working to strengthen Ireland's business environment by promoting greater competition in the non-traded sectors of the economy; developing a public administration system that is responsive to the needs of industry; investing in world class physical infrastructure and developing our research and development capability through heavy investment in Science Foundation Ireland. It is only through continuous upgrading of our products, processes and people that we can in the long-term secure our industrial production base and ensure that the fickle attraction of low cost production is not the key reason for firms locating in Ireland.
Question No. 199 answered with Question No. 151.
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