Vol. 571 No. 1
231 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment whether she has monitored the growing trend for manufacturing industry to relocate to more competitive economies; if she proposes to take any corrective measures; and if she will make a statement on the matter. [21274/03]
My Department and its enterprise support agencies pay particular attention to the structure of the country's manufacturing base and how this is evolving in response to international market forces. The position of firms vis-à-vis the competitive appeal of other economies is continuously monitored, especially in the context of maintaining Ireland as an attractive and competitive location for investment. However, factors influencing a decision to relocate all or part of a firm's manufacturing function are many, varied and complex. Many of these are outside the direct influence of government policy makers and may include business take-overs, consolidation and changes in product or market focus as well as relative wage rates and other costs and incentives. In a modern, entrepreneurial and open economy such as ours, manufacturing enterprise will always be influenced by competitive challenges and opportunities. The response by enterprise may well include the option of relocating operations to other economies. That is a fact of business life both in the context of an open Europe and in a global economy. On balance, Ireland gains more from the underlying movement of firms due to our competitive strengths and our attractions as an excellent European business location.
Nevertheless, I cannot be complacent about business problems, competitiveness challenges or the impact sluggish world economic growth has on firms and jobs in Ireland. A few weeks ago I set up a new enterprise strategy group under the chairmanship of Eoin O'Driscoll to recommend and prioritise new strategies and policies to ensure that the enterprise prosperity we enjoyed in the last decade will continue into the future. I have asked Eoin O'Driscoll's group to examine those issues that my Government colleagues and I must take into account to strengthen our enterprise environment, to promote a very different innovation and knowledge driven economy and to sustain those industries already providing employment here. I expect the group to complete its work within the next six to nine months.
Questions Nos. 232 to 236, inclusive answered with Question No. 229.
