Dáil Éireann debate -
Thursday, 5 Dec 2002

Vol. 558 No. 6

Written Answers. - Employment Levels.

Bernard J. Durkan

Question:

71 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which the relocation to low wage economies has affected jobs here; and if she will make a statement on the matter. [25258/02]

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

My Department and its agencies are continuously monitoring the position of firms in both the manufacturing and services sectors, to identify both opportunities and threats to employment. There is no evidence available to suggest any increasing tendency for firms to relocate to lower wage economies. The reasons for such relocation are many, varied and complex, and on balance Ireland continues to benefit from such movement due to the underlying strength of our economy despite the recent world downturn. We cannot be competitive in all types of industrial activity, and we continue to seek to secure worthwhile employment for our people in areas where Ireland has a competitive advantage.

The quality and sustainability of the jobs we create is a particular focus for the future. In order to maximise the potential of our existing base of overseas companies, and to minimise job losses, IDA Ireland is encouraging them to add strategic functions including research and development, technical support, software development, e-commerce, logistics, and shared services. In this way, such firms can move up the value chain and become more embedded in the Irish economy.

To further facilitate enterprise development, the Government is focusing on strengthening Ireland's research capacity, enhancing the country's skills base, implementing the infrastructure elements of the national development plan, and shaping the regulatory environment for enterprise. The need to remain competitive in world markets is a key factor in current issues such as negotiation on post-PPF arrangements and control of public spending.