We are now operating in a competitive global market where products have life cycles and certain industrial processes become uncompetitive as technology migrates to the emerging low-wage economies. Accordingly, in a dynamic, open economy, companies must constantly review their products and processes and be prepared to restructure and retrain in response to global competitive pressures. In certain cases it is regrettable but inevitable that closures or scaling back will result from addressing the effects of the global marketplace.
My recent trip to the US demonstrated strongly to me that companies must be truly global in their approach. In this context, they plan the location and restructuring of production to maintain a cost advantage over their competitors. Failure by firms to do so will inevitably lead to their demise. Ireland is gaining from the process of globalisation as very many companies have recognised the competitive advantage of Irish skills and our business environment. However, there will also inevitably be certain job losses in this global restructuring process.
Information about individual firms in difficulty or likely to be in difficulty is both sensitive and confidential and it could be potentially damaging if it were to be publicised. For that reason it would not be desirable or prudent of me to mention specifically the cases I had in mind following my comments on my recent trip to the United States.
As regards the early warning system in my Department, it has been improved by introducing a more systematic review of problem cases where the State bodies consider there is a particular risk to the maintenance of jobs or the continuance of the business. The Deputy can rest assured that every effort is made to identify and help firms to take remedial action where that is possible with a view to improving competitiveness and maintaining employment to the maximum levels possible. There are some 24 firms included on the early warning system operated by my Department.
My Department, including its employment protection unit, plays a central role in co-ordinating and overseeing the early warning process. There is a close working relationship with State agencies and other interests involved with a view to ensuring that any assistance possible is made available in the most effective and efficient way.
It should be recognised that, despite the best endeavours of my Department and State agencies, responsibility in the final analysis for decisions on employment, and their timing, rests with the companies. Furthermore, it must be understood that the best early warning system will not in itself save companies in light of my earlier comments on competitiveness. A realistic approach to rescue activities has to be taken by the industrial development agencies.