Skip to main content
Normal View

Dáil Éireann debate -
Wednesday, 18 Nov 1987

Vol. 375 No. 5

Written Answers. - Industrial Strategy.

14.

asked the Minister for Industry and Commerce, arising from the Fianna Fáil election document, Pro- gramme for National Recovery and in particular that area devoted to industrial strategy, if he will enumerate the actions regarding promised legislation and other undertakings now in train.

The Deputy will recall that in my reply of 2 May I outlined the steps which I had taken to implement the objectives set out in the Programme for National Recovery to restore Ireland as a location for foreign investment. In that reply I stressed the importance technology and marketing would have on the development and promotion of a strong industrial base in the country. Since that date, the many proposals contained in the programme have been actively pursued in my Department as I will now outline to the Deputy.

As far as the areas of export development and marketing are concerned, the Deputy will be aware that the Office of Trade and Marketing in my Department is currently preparing a national marketing plan which will identify a range of measures by which Irish firms can be supported in securing increased shares of the home and export market.

In the case of export services, a special export services task force under the chairmanship of the Minister for Trade and Marketing will shortly be established to co-ordinate the national effort in this area and to give a major impetus to the development of opportunities in overseas consultancy.

An area of particular importance is the need to increase the marketing capability and exporting activities of indigenous Irish industry, particularly smaller firms. The national marketing plan will contain a range of proposals to address these issues. However, even in advance of the plan, a number of mechanisms have been put in place to assist in this area. It is hoped that the recently enacted legislation on special trading houses will help smaller companies to get their goods on foreign markets without increasing the burden of acquiring marketing expertise. CTT itself is also successfully promoting its group marketing schemes in a range of sectors. There are 17 schemes involving 54 companies in place at present. In fact, I had the pleasure in June last of officially launching one such project in the Boston area. Under this scheme groups of companies can get together to share what would otherwise be an impossible burden if left to one company.

In addition to the above measures, the national marketing plan will also address the question of product identification to see what further new opportunities might be pursued in addition to those identified under the national linkage programme and through CTT's design and production development department.

As I indicated in my reply to questions on 14 October last, the Government are anxious to further increase the return from State expenditure on all overseas promotional and representational activities. Consideration of proposals to strengthen the trade role of our diplomatic missions abroad is at an advanced stage. I am also looking at the idea of housing Irish representatives in key markets in one central location in each market with a view to co-ordinating marketing efforts, ensuring efficient use of resources, eliminating duplication and overlap and generally enhancing the profile and perception of Ireland.

In relation to the question of industrial development and improving employment prospects this is being developed primarily on a sectoral basis. Selected sectoral strategies have been prepared or are at a relatively advanced stage in electronics, chemicals and pharmaceuticals, textiles and clothing, plastics and mechanical engineering. The strategies have drawn largely on the work of the Sectoral Development Committee in relation to how the efficiency and competitiveness of sectors could be best improved. They address such matters as market research at home and abroad to identify development and employment potential; our natural resources; the new advanced skills in our workforce; the achievement of increased market share in selected sectors and markets.

The sectoral strategy approach is one of a number of measures which should contribute towards achieving the objective of creating approximately 20,000 extra jobs on average per annum in manufacturing industry over the next ten years. The Programme for National Recovery stated that the potential for joint ventures between the public and private sectors would be encouraged. In this area, NET has recently entered into a joint ventures with the Imperial Chemical Industries subsidiary, Richardson Fertilisers Limited. Irish Steel has been seeking a joint venture partner for some time, without success. These efforts are continuing.

In line with measures set out in the Programme for National Recovery, the Government has decided that the functions of the Institute for Industrial Research and Standards (IIRS) and those of the National Board for Science and Technology (NBST) will be combined in one organisation. The establishment of the new body is subject to the enactment of legislation to be brought before the Houses of the Oireachtas during the present session.

The Bill is at an advanced stage of preparation and I expect to be in a position to present it to Dáil Éireann and circulate it to Deputies very shortly. In line with the commitment to review the basic briefs of State bodies, the functions of SFADCo are being expanded. In this regard the Deputy will recall that in July 1987 the Government decided that SFADCo should be given a more integrated and creative role in contributing towards national recovery in the mid-west region. To this end the functions at present being exercised by the IDA and Bord Fáilte in the mid-west and southwest Offaly region will be carried out by SFADCo. The necessary arrangements to give effect to this change of responsibilities are being put in hand.

The Government has assigned particular significance to the development of financial services. As the Deputy is aware work has proceeded apace on the development of an international financial services centre at the Customs House Dock site in Dublin. The contract for the development of the site was recently awarded to a consortium comprising Hardwicks, British Lands plc and McInerneys.

At the moment IDA have serious inquiries from approximately 46 companies — including companies from North America, Europe and the Far East — about setting up in the centre. The IDA expect up to nine of these projects to be approved by year end. In addition to this, five projects, with significant job potential have been approved, one of which is already in operation.

I am conscious that the development of new technology is essential to the developing needs of industry. As proposed in the programme a Minister of State with specific responsibility for Science and Technology has been appointed. A new science and technology development programme has already been initiated and, in this connection, an allocation of £3.1 million was made in my Department's Vote facilitating the launch of the following programmes: A National Biotechnology Programme; An Advanced Manufacturing Programme (AMT); Teaching Companies Programme; South-East Region Pilot Programme in Technology Development; Collaborative R & D Programme; and replacement and upgrading of equipment in IIRS.

A major priority of the Government is the need to reduce insurance and other costs to industry. In this connection I can assure the Deputy that significant measures to tackle the problems of cost and availability of insurance for industry are already in train. The report of the Inter-Departmental Committee on Employers and Public Liability Insurance is to be considered by Government in the near future. In June of this year I set up joint Government-insurance industry talks to concentrate on measures which will favourably influence the cost and availability of insurance cover.

The reduction of high insurance costs is an integral part of the Government's Programme for National Recovery. The Government will move quickly to facilitate a reduction in costs, by proceeding with legislation to abolish juries in personal injury cases, by introducing legislation to give effect to the main recommendations of the Barrington Commission of Inquiry on Safety, Health and Welfare at Work and by promoting greater involvement by insurance companies in the areas of road and workplace safety. The scope for promoting the publication of a Book of Quantum of Damages, for introducing a pre-trial procedure system and for reducing the level of legal representation in the superior courts to help reduce legal costs will also be examined. Insurance industry representatives have given assurances that reductions in insurance premia will follow the introduction of an improved framework and I will ensure that they live up to their promises.

I would hope for rapid progress on most, if not all, of these points so that we can start to tackle and get under control as soon as possible these component elements of insurance costs.

I am also examining other proposals which can be taken to simplify or abolish complicated or obsolete rules and regulations which impact on industry.

In a broader context, the Government in line with the commitment given in their pre-election programme engaged in consultation arrangements with the social partners in the preparation of the recently published Programme for National Recovery.

Top
Share