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Dáil Éireann debate -
Wednesday, 14 May 1997

Vol. 479 No. 3

Ceisteanna — Questions. Oral Answers. - Manufacturing Employment.

Bertie Ahern

Question:

1 Mr. B. Ahern asked the Taoiseach the totals and the increases or decreases in manufacturing employment over each decade from the 1930s to date in the 1990s. [12673/97].

The information requested by the Deputy is contained in a statement which I propose to circulate in the Official Report.

Persons at work in Manufacturing Industries, 1936-1996

Year

Persons 000

Average annual change

Absolute (000)

Percentage

1936

138.1

1946

147.7

1.0

0.7

1951

184.2

7.3

4.5

1961

179.4

–0.5

-0.3

1966

198.4

3.8

2.0

1971

213.6

3.1

1.5

1981

238.1

2.5

1.1

1986

215.3

–4.6

–2.0

1991

218.7

0.7

0.3

1996

246.5

5.6

2.4

Source: Censuses of Population for 1936-1991, Labour Force Survey for 1996.

Does the Minister of State accept that the increase in internationally placed manufacturing and services industries that occurred through the 1970s and 1980s resulted from the 10 per cent corporation profits tax rate and that he is taking a very extensive gamble in proposing to increase that rate by 25 per cent to 12.5 per cent? Will the Minister of State give the House the figures for the last two decades?

The Deputy's question sought the number of persons at work in manufacturing industries since the 1930s. I have that information compiled on a census basis: the number of people working in manufacturing industry increased from 138,100 in 1936 to 246,500 in 1996. A number of factors operate here: we have a very vigorous, well educated, young workforce; a very stable industrial relations climate and the perception that because of our good economic performance, Ireland is considered to be a good place to locate by investors. Last but not least we offer a variety of inducements and incentives which make it worthwhile from the point of view of indigenous and foreign industry to locate here. Therefore, to isolate any one element would be to highlight that to the detriment of the perceived contribution of others. Cumulatively, all of these factors gave rise to our tremendous economic performance which the ESRI predicts will last into the next decade at least.

It will last particularly with a change of Government.

I welcome the success of many Governments since the 1930s to the point at which we have now 246,500 employed in manufacturing industry. Those employed at the International Financial Services Centre would add to those figures. Having served as Minister for Industry and Commerce and travelled abroad to attract foreign investment, I accept the package of measures the Minister mentioned were most important — the education system initiated by the late Donogh O'Malley, the stability wrought under the Programme for National Recovery in 1987 — and have added to this success. In negotiation with potential investors does he agree the commitment to a 10 per cent corporation profits tax rate by successive Governments has been a fundamental attraction and, if so, does he not consider the Government is making a gross mistake in proposing to increase that rate by 25 per cent in the dying days of its administration? On re-election to Government, we will rescind that decision?

I have allowed some latitude on this but it is essentially a statistical question and matters of policy ought not and cannot be raised. I am proceeding to Question No. 2.

Since there are now 246,500 people employed in manufacturing industries here, can the Minister of State give the House any details of their location?

I am sorry, Deputy——

I am seeking a breakdown of the figures.

The Deputy had better table a separate question.

The Minister has not answered.

Deputy, please, I decide these matters.

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