Written Answers. - Job Protection.
Bernard J. Durkan
Question:
129
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the steps, if any, she has taken to address the issue of the re-location in low wage economies of a number of industries in the recent past; if her Department has evaluated the potential danger of these developments; the action, if any, proposed in this regard; and if she will make a statement on the matter.
[3767/00]
Bernard J. Durkan
Question:
130
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
if she has satisfied herself that the level of overseas investment in employment creating industry will continue for the foreseeable future, with particular reference to competition in a number of low wage economies; and if she will make a statement on the matter.
[3768/00]
I propose to take Questions Nos. 129 and 130 together.
The dynamic inherent in an enterprise-driven international market economy can result in the movement of firms between different regions and national economies. Ireland has benefited from such movement to a greater extent than we have lost. Our losses have tended to be in lower productivity firms. Changing market circumstances will challenge both indigenous and foreign firms alike to look at market-driven solutions to business issues. Not only will indigenous Irish firms locate in other economies for reasons of cost but also to be closer to customers or to gain access to relevant distribution networks.
The thrust of enterprise policy is increasingly to provide firms with relevant support to radically improve their productivity and ability to compete. To be competitive, firms must develop the technical capability and management skills to move up the value-chain into more profitable markets and products. Building Irish firms with competitive scale and strong positions in international niche markets often require that they not alone build up competence and capability at home but also make strategic investments in other economies. Such investments can be of long-term benefit to Ireland and have not so far been shown to restrict economic or employment growth at home.
The changing nature of competition for foreign direct investment projects is reviewed on a regular basis. Policies are being pursued to maximise the continued attractiveness of Ireland as a competitive and desirable location for investors in high technology and high growth sectors and to increase overseas companies' commitment to the economy.
Ireland is particularly strong in the electronics, software, pharmaceutical and health care sectors where our competitive advantage is a highly educated workforce, a supporting infrastructure of universities and technology institutes, advanced global communications links and an attractive taxation environment. These attributes will be reinforced by further significant investments, through the national development plan, in human resources, skills, research and development and infrastructure which will underpin our competitive position as a location for high technology and high value added enterprise. Wage costs, while important in the overall competitiveness context, constitute one element in firms' overall cost structure and decision making process.
In working with overseas firms that have located here the emphasis will be on encouraging their operations to move into higher value activities, to encourage them to develop in Ireland strategically important operations for their world-wide corporate structure and to increasingly deepen their activities within our country by establishing such critical business functions as research, development and innovation.
The availability of high quality business parks, industrial estates and advance building in key centres is necessary to attract greenfield investment, particularly to the regions. IDA Ireland is working to provide these facilities in partnership with local authorities and the private sector.
I am satisfied that the thrust of the national development plan towards infrastructure and skills will make a very strong contribution towards the competitiveness of enterprise in Ireland in the years ahead.
