Vol. 535 No. 3
45 Ms McManus asked the Tánaiste and Minister for Enterprise, Trade and Employment the likely implications for Irish exports of the down turn in the US economy and the knock-on effect on US technology companies based here; and if she will make a statement on the matter. [12195/01]
Although the extent of the slow-down in the US economy is not yet fully known, it is clear that competition in the US market will be greater in the immediate future than it has been.
It is likely that the medium – to low-technology sectors in particular will find it more difficult to sell to US industry. Some consolidation among Irish customers in the US is likely, and this may tighten the market further.
However, the US market will continue to offer huge opportunities for Irish exporters generally, and particularly in the high-technology field. In this sector, Irish exporters are generally focused on efficiency related products and services, which have been less affected by the slow-down.
Feedback from companies assisted by Enterprise Ireland suggests that they are maintaining their planned levels of business and the most recent statistics for exports to the US support this, as they demonstrate that exports to the US continued to grow up to the end of 2000. If, as is expected, the US economy begins to recover in the second half of the year this position is likely to improve.
Job losses announced in IDA Ireland assisted companies and which are directly related to the downturn total about 1,200 to date. In addition some of the major multi-nationals have temporarily halted recruitment or slowed the build-up of planned expansions.
Overall, IDA Ireland hopes to create about 12,000 new jobs in 2001, which is not as strong as in 2000 but is still high by historical standards.
The implementation of the national development plan, and in particular the roll-out of infrastructure to the regions, and measures taken to ensure the adequate supply of skilled labour will help to maintain the competitiveness of Ireland as an attractive investment location.
