Written Answers. - Job Losses.
Seán Ryan
Question:
95
Mr. S. Ryan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the number of job losses in IDA sponsored companies to date; the anticipated number by the end of 2001; the steps being taken to secure replacement jobs; and if she will make a statement on the matter.
[28633/01]
Bernard J. Durkan
Question:
174
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the efforts she has made to attract further industry in an effort to offset job losses in the past 12 months; and if she will make a statement on the matter.
[28993/01]
I propose to take Questions Nos. 95 and 174 together.
Employment figures for 2001, which are based on the preliminary figures of the Forfás annual employment survey, will not be available until the end of the year. It is very difficult to forecast at this stage what the effect of the current downturn may be on employment numbers. The IDA knows that there are more jobs at risk than normal and this will continue until there are clear signs of a sustained recovery in the US and globally. Nevertheless, employment growth continues in some companies and sectors and the IDA believes it will end 2001 with as many people employed in IDA supported companies as at the end of 2000. This means that the exceptional gains of more than 16,000 jobs in overseas companies last year will be retained.
Enterprise Ireland considers that, in balancing out jobs created and jobs lost by indigenous manufacturing and internationally traded services firms, there should be a small increase, perhaps 1,000 or thereabouts, in the numbers at work in those firms.
Given the current climate, the development agencies have increased the intensity of their relationships with clients to ensure that the impact of the recent downturn is minimised. Where there have been closures of layoffs, IDA and Enterprise Ireland are working closely with the companies and with FÁS to assist the people involved in finding other employment opportunities.
However, despite the downturn in world economic activity, world class ICT companies with significant activities in Ireland have assured the IDA of their immense confidence in the country, its positive business environment and the flexibility with which they can operate here. If, as a country, we can maintain our competitiveness and build skills and infrastructure needed for the knowledge economy, Ireland will be well placed to win a disproportionate share of the next wave of their knowledge-intensive investments.
In this regard, steps taken in recent years will stand to the IDA in competing for new investments. In particular, the Science Foundation Ireland initiatives and programme of research for third level initiative in the research areas and the broadband developments driven by Government have been of special value. Similarly, the range of skills initiatives has been highly effective in persuading potential investors that Ireland can cater better for prospective needs than most other countries.
The implementation of infrastructural investments under the NDP over the next few years will also be critical. The continued reduction of the standard rate of corporation tax and its assured long-term nature will be a very significant contributor to the attractiveness of Ireland to many new investors in the next few years.
