Dáil Éireann debate -
Wednesday, 10 Oct 2001

Vol. 541 No. 5

Written Answers. - Job Losses.

Pat Rabbitte

Question:

169 Mr. Rabbitte asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of redundancies or job losses notified to her Department during 2000 and to date in 2001; the number of anticipated job losses reported to her Department to date in 2001; if her attention has been drawn to the particular problems of job losses in the technology sector; the measures she will put in place to deal with these losses; and if she will make a statement on the matter. [23180/01]

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

A total of 13,316 proposed redundancies were notified to my Department in 2000. In the first nine months of 2001, 14,031 proposed redundancies were notified.

With regard to the technology sector, the particular problems which that sector in Ireland is experiencing at present are a reflection of events in that industry globally. Many of the world's leading high technology companies are experiencing stagnant or falling market demand and have had to retrench their operations worldwide. The Irish operations of the global ICT companies that are experiencing job losses or closures attribute their difficulties to global factors and not to problems inherent in the Irish economy. They state the causes principally as loss of sales for their particular product, European and world downturn in the global ICT industry, increasing global competitiveness or overcapacity due to the buoyancy of recent years.

The Government's strategy is to focus intensely on ensuring that Ireland remains an attractive location for the ICT sector. This will help to miti gate the worst effects of the downturn and ensure that we are well placed to benefit from the undoubted long-term growth potential of the sector. Key issues in this respect include implementing the NDP on schedule, particularly the rollout of infrastructure into the regions; maintaining the competitiveness of the economy by controlling wage and price inflation; enhancing our skills base by continuing to tailor education and training to market needs and encouraging existing companies to undertake value-added functions in Ireland to ensure that the products and services located here are not competing purely on cost.

Despite recent bad news, the basic building blocks are in place and we still have an immensely strong international reputation in this vital industry. For the moment it will be important for the development agencies to liaise closely with their client companies and, particularly in the context of multinational companies, support the favourable positioning of Irish located operations in the context of restructuring decisions made by global parents. The ICT industry will continue to be a dynamic, growing sector of the world's economy and we are determined that Ireland will maintain the leading position we have earned over the last decade.