Dáil Éireann debate -
Thursday, 23 Oct 2003

Vol. 573 No. 2

Written Answers. - Job Protection.

Bernard J. Durkan

Question:

79 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she proposes to take to address the increasingly important issue of Ireland's position as an investment location on the international scene; if she or her Department have evaluated the reasons surrounding the relocation of major manufacturing industries to other more competitive economies; if it is intended to address the major contributory factors in this area with a view to ensuring future stability in the economy here; and if she will make a statement on the matter. [20936/03]

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

Maintaining Ireland's attractiveness as a profitable location from which to do business is a constant priority for both the Government and my Department. As a contribution to the debate on enterprise policy in the future, I published Review of Industrial Performance and Policy a few weeks ago.

We cannot be complacent about the relocation of firms, for whatever reason, to other countries nor the associated job losses. My Department and its enterprise support agencies pay particular attention to the structure of the country's manufacturing base and how it is evolving in response to international market forces. However, rapid economic growth over the past few years has changed the structure of our economy. Our strength and traditional competitive advantages in basic manufacturing and services is being gradually whittled away by the emerging economies of Asia and the fast modernising countries of EU accession states.

As our competitive characteristics have changed, enterprise development policies have changed to meet both the needs of society in terms of employment opportunities and the needs of businesses that generate those jobs. To meet more intensive competition for investment, Ireland needs in the longer term to move imaginatively to put itself in an indisputable position to offer the best possible location from which to undertake higher-level activities.

Some important new initiatives are showing good dividends. For example, Science Foundation Ireland has been set up to administer the €646 million technology foresight fund to support world class research that will be the genesis of future innovation and new technologies. This fund will help drive long-term growth and competitiveness by helping attract new high technology firms to Ireland while strengthening the capabilities of existing foreign and Irish owned enterprises. New centres in science, engineering and technology have been funded, which will involve partnerships between Irish universities, world leading research companies and some of Ireland's most promising firms in ICT and biotechnology.

We are also implementing a careful progression in the sophistication and breadth of higher value activities that companies carry out here. IDA Ireland has responded to the new value added imperative by attracting firms working with new technologies or involved in higher value activities. The higher priority my Department accords to quality inward investment projects is reflected in a number of new and superior strategic projects that have been secured since 2000, notably Wyeth Limited's €1.2 billion biotechnology investment in Dublin and Genzyme's €150 million investment in Waterford. Much emphasis is also placed on encouraging companies to add strategically important functions to their Irish operations. This is showing significant success.

These are some of the new policies in place and delivering strategic benefits to underpin new businesses and tomorrow's jobs in quality employment. However, more strategic thinking and policy development needs to take place however. Consequently, I have set up an enterprise strategy group under the chairmanship of Eoin O'Driscoll to recommend and prioritise new policies to ensure that the enterprise prosperity we have enjoyed will continue into the future. The group will examine the issues that will strengthen our enterprise environment, promote a very different innovation and knowledge driven economy and help sustain those industries already providing employment here.

I know the Deputy is concerned that we have the right balance of policies to promote the technologies and enterprises of tomorrow. I would like to invite him to contribute to the enterprise strategy group's thinking by making a formal submission of his views. His comments can be sent to the group through its secretariat at Forfás, Wilton Park House, Wilton Place, Dublin 2, or by email to [e-mail].

Paddy McHugh

Question:

80 Mr. McHugh asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will engage in discussions with a company (details supplied) in County Galway to determine the stability of same and to determine the commitment of the company to Ballinasloe as a result of the company's public announcement regarding short-time working and the fact that it is to continue for an indefinite period; and if she will make a statement on the matter. [24641/03]

Paddy McHugh

Question:

81 Mr. McHugh asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will report on her discussions with a company (details supplied) in County Galway on its recent announcement regarding short-time working and the fact that it is to continue for an indefinite period; and if she will make a statement on the matter. [24642/03]

Paddy McHugh

Question:

82 Mr. McHugh asked the Tánaiste and Minister for Enterprise, Trade and Employment if, following her discussions with a company (details supplied) in County Galway, the Government can be of assistance to same to ensure its future viability; and if she will make a statement on the matter. [24643/03]

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

I propose to take Questions Nos. 80 to 82, inclusive, together.

The company in question is currently undertaking a review of its operations, which is not expected to be completed until early next year. I understand that the company has recently introduced short-time working because of an increasingly competitive environment, with increased labour and insurance costs. Enterprise Ireland is working closely with the company, including assistance to develop overseas markets.