Vol. 563 No. 4
124 Mr. M. Higgins asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps being taken to combat the decline in the numbers in industrial employment; her forecast for the likely growth or decline in the numbers employed in this sector in 2003; and if she will make a statement on the matter. [8119/03]
141 Mr. Broughan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the recent purchasing manager's index, published by NCB, showing that the manufacturing sector experienced a fifth successive month of decline in February 2003; the steps being taken to address the decline in manufacturing; and if she will make a statement on the matter. [8113/03]
I propose to take Questions Nos. 124 and 141 together.
The latest Central Statistics Office quarterly industrial employment release gives preliminary estimates of industrial employment for September 2002. These estimates point to a decrease of 18,100 in industrial employment from 271,400 in September 2001 to 253,300 in September 2002. Given the fluctuating and uncertain world economic climate, it is not possible to provide definitive forecasts of numbers employed.
According to the latest NCB Survey of Irish manufacturing, the purchasing managers index fell to 48.3 in February – a reading above 50 indicates growth in manufacturing compared to the previous month. This compares to the 48.1 index reading recorded in January, indicating that the rate of decline in manufacturing output eased slightly in February. Nevertheless, conditions in manufacturing remained soft in February, especially in respect of exports. The underlying employment position, however, remains very strong, with overall employment having increased by around 22% in the four years to August 2002, and the unemployment level continuing at a very low level.
The Government and the industrial development agencies remain committed to implementing policies which will assist firms in sustaining and improving their overall competitive position. Continued implementation of the provisions of the national development plan and of the outcome of the recent partnership negotiations will be very important in that regard.
125 Mr. F. McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether changing world markets will lead to more job losses here due to cheaper labour costs in the developing world; and the strategies she has in mind to face this huge challenge. [8084/03]
137 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which her Department has monitored the relocation of jobs from this country to low wage economies; if she has identified a formula to counter this trend; and if she will make a statement on the matter. [8147/03]
176 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment her proposals to counter the relocation of some industries to low wage economies; and if she will make a statement on the matter. [8366/03]
I propose to take Questions Nos. 125, 137 and 176 together.
It is not possible for the industrial development agencies to determine the number of jobs which have been relocated to low wage economies in any particular period due solely to lower labour costs, as the reasons for relocations are varied and complex. Factors contributing to a decision to relocate all or part of an enterprise may include consolidation, merger or acquisition, or changes in product or market focus, in addition to relative wage rates and other costs and available incentives. However, in the context of maintaining Ireland as an attractive and competitive location for investment, my Department and its agencies are continuously monitoring the position of firms in the manufacturing and services sectors to identify both opportunities for, and threats to, employment.
Ireland gains more than it loses from its status as an open economy, and this trend is likely to continue in the coming years with any job losses being counteracted by firms choosing this country as a location for certain higher value added business functions. We have been remarkably successful at attracting long-life investments, with a number of foreign-owned companies successfully operating here for more than two decades.
