Written Answers. - Job Protection.
Bernard J. Durkan
Question:
119
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
if she has identified particular industries which are vulnerable in the current climate given the number of jobs lost in the past 12 months; if attempts are being made to safeguard jobs in such industries; and if she will make a statement on the matter.
[17460/01]
Bernard J. Durkan
Question:
120
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
if, arising from the various industrial closures culminating in job losses, she has identified the main cause or causes of such closures; if she has identified a methodology to reverse the trend; and if she will make a statement on the matter.
[17461/01]
Bernard J. Durkan
Question:
129
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the steps she has taken to protect industry from low wage economies; and if she will make a statement on the matter.
[17471/01]
Bernard J. Durkan
Question:
130
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
if she has detected any changes in the world-wide economy which may affect prospects here in a positive way; and if she will make a statement on the matter.
[17472/01]
I propose to take Questions Nos. 119, 120, 129 and 130 together.
Many of the recent jobs losses which have occurred are as a result of the restructuring process which is going on in industry in Ireland whereby activities, and hence jobs, at the lower end of the value-added scale are being phased out, as these activities become uneconomic in an Irish context.
The most vulnerable jobs in Ireland are those in relatively low-skill areas, where Ireland is becoming an uncompetitive location for manufacturing. As companies located in Ireland continually upgrade their activities in response to the ever-changing economic environment in which they operate, this can sometimes result in a relocation of lower value-added activities to lower wage economies. In this respect a primary element of the policy implemented by the development agencies is to assist client companies to move up the value chain, from being, basically, mandated subsidiary operations to being strategically independent operations within their corporate structures world-wide. This will result in activities requiring higher skilled employees which will help to create more secure employment into the future.
The agencies seek to ensure that as jobs are lost at the lower end of the scale, they are more than compensated for by greater numbers of jobs at the higher end. This process has been more than successful over the past decade.
The slowdown in the US economy is having a negative but limited impact on the overseas owned manufacturing sector in Ireland. The impact has been confined to the information technology related sectors to date and our base of companies in this sector is relatively young and focused on higher value products, often incorporating functions such as customer-technical support, software development, and logistics, which make them less vulnerable than basic manufacturing plants.
As regards developments in the world economy, those that may affect Ireland in a positive way are; interest rate cuts by the European Central Bank, the Bank of England and the US Federal reserve; evidence that the EU economy is continuing to grow moderately, despite the downturns in the US and Japanese economies, and the continuing low rate of price inflation in OECD economies.
To take advantage of positive developments such as these we must continue to focus on those factors over which we have some control, and which impact significantly on the competitiveness of Ireland as a base for investment. These issues include implementing the national development plan on schedule, particularly the rollout of infrastructure into the regions, wage and price inflation, ensuring a stable industrial relations environment and addressing the important question of skills supply.
