Vol. 544 No. 3
96 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans she has to bolster sustainable and indigenous employment opportunities in the light of growing job losses in the inward investment sector. [23530/01]
The issue the Deputy has raised is primarily a day-to-day mat ter for the industrial development agencies. However, I will outline the key responses of the two main agencies, Enterprise Ireland and the IDA, to the changing economic environment and the challenges facing their clients.
Regarding indigenous industry, given the changed market conditions, Enterprise Ireland is encouraging suppliers to diversify into other market segments through the identification of opportunities in the medical devices and healthcare sector. Also, a number of inward buyer missions and supplier days have been organised with new potential customers.
Enterprise Ireland also continues to work with its clients to increase and diversify their exports with a view to ensuring sustainable employment. The agency is also working in conjunction with my Department to develop a network of venture capital funds. The funds will have a specific emphasis on regional projects and early phase start-ups where there is a serious lack of available funding.
In the area of foreign direct investment, the IDA believes there are real prospects of winning valuable new investments over the next six to 12 months, but it must also be said that there seems to be an unusual degree of investor uncertainty in the US just now which may be ascribed to the events of 11 September. The health care, pharmaceutical and international services sectors seem to offer the best prospects in the short term.
Employment growth continues in some companies and sectors and the IDA believes that it will end 2001 with as many people employed in IDA supported companies as at the and of 2000. Where there have been closures or layoffs, it has been made clear to the IDA that, for the most part, these were attributable to sectoral and global difficulties and not to problems inherent in the Irish economy. Steps taken in recent years will stand to the IDA in competing for new investments which will result in sustainable employment. The timely implementation of infrastructural investments under the national development plan in 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.
Nonetheless, I assure the Deputy that the IDA is working closely with the companies who have suffered job losses and with FÁS to assist the people involved in finding other employment opportunities.
