Dáil Éireann debate -
Wednesday, 22 Nov 2000

Vol. 526 No. 4

Written Answers. - Industrial Development.

Bernard J. Durkan

Question:

193 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she continues to monitor any relocations of Irish industry to low wage economies; the potential loss in terms of employment of any such developments to date; and if she will make a statement on the matter. [27041/00]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

Many factors can contribute to a commercial decision to relocate a plant ranging, inter alia, from wage costs to the local incentive package available to firms. The reasons behind companies decisions on where to locate a business are of ongoing interest to my Department and the development agencies in the context of maintaining Ireland as a competitive location for foreign direct investment.

In this context a close eye is kept on firms relocating from Ireland to all other economies. Relocations are a difficult fact of life in modern industrial policy particularly in the context of globalisation. Ireland has both gained and lost from decisions by firms to relocate and it is likely that this trend will continue in years to come with losses being compensated for by firms deciding to relocate and pursue some higher value business functions here.