While I share the Deputy's concern at the slight decline in the numbers in industrial employment, I should point out that the issue of job creation is a day-to-day operational issue for the enterprise development agencies of my Department and not one in which I have a direct function. IDA Ireland, Enterprise Ireland, Shannon Development and the county enterprise boards are the relevant agencies under the aegis of my Department with responsibility for industrial development nationally.
While the economy slowed last year from the performance of the previous year, in line with deteriorating global economic conditions, Irish economic conditions remained robust when compared to the rest of the EU. However, enterprise development in Ireland is now facing a number of challenges with sluggish growth in the main export markets, increased competition from low-cost locations and some erosion in Ireland's competitiveness on the global stage.
While overall employment levels in Ireland increased marginally in 2002 as a result of job creation in the public sector and other non-traded sectors of the economy, employment in firms in the more exposed internationally-traded manufacturing and service sectors contracted by 2.8% in 2002.
Companies supported by IDA Ireland and Enterprise Ireland created more than 23,000 permanent full-time jobs in 2002, a strong achievement in the context of difficult economic conditions. However, these employment gains were outweighed by job losses of just over 31,000, as the economic downturn impacted on our ability to sustain jobs.
Total permanent employment in firms supported by IDA Ireland and Enterprise Ireland reduced from 284,900 in 2001 to 277,000 in 2002. However, this still represents a 50% increase on ten years ago. Jobs created outweighed jobs lost in financial services and the chemical industry. The largest job decreases were experienced in metals and engineering-electronics and internationally traded services – software.
While it is not possible to predict job gains or losses given the uncertain economic environment, the Government and the development agencies are undertaking a number of co-ordinated strategies to sustain and promote growth in industrial employment, including the following: a moderation in pay increases in line with slowing productivity growth, accompanied by a slowing of other price and cost increases; promotion of greater competition in the non-traded services sectors of the economy; continued emphasis on the importance of research and development and of new process and product innovation; and accelerated delivery of vital economic infrastructure for businesses including broadband, roads, electricity and waste management.
The development agencies are continuing to work closely with existing clients to improve their productivity and competitiveness. The agencies are also actively identifying and working with high potential start-ups and attracting new foreign direct investment.