Bernard J. Durkan
Question:91 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to address the issue of the relocation of jobs to low wage economies; and if she will make a statement on the matter. [24734/03]
Vol. 573 No. 2
91 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to address the issue of the relocation of jobs to low wage economies; and if she will make a statement on the matter. [24734/03]
The Irish economy is undergoing fundamental change at present. Ireland can no longer be seen as a low cost location for investment. Ireland, as a location for what might be called basic, moderate to low technology production only, forms of mobile investment, is being overtaken by other less developed economies, notably in eastern Europe and the Far East, in terms of cost competitiveness.
A key component of the Government's strategy to tackle the competitiveness challenge from countries with lower labour costs is to increase the levels of investment in research, technological development and innovation in industry in Ireland. This will assist resident companies to move up the business value-chain, safeguard employment and, in the longer term, provide more sustainable and higher quality jobs. In recognition of the importance of this task, the budget for Enterprise Ireland, targeted at increasing research and innovation in Irish companies, has been significantly increased in recent years.
Furthermore 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.
Last May, a new financial support package for indigenous industry was launched by Enterprise Ireland, which is more suitable to clients' development needs. The Agency has also recently launched the €10 million competitiveness fund, which is designed to build competitiveness in small and medium enterprises. The development of export markets is also a critical factor in sustaining indigenous companies and Enterprise Ireland's range of supports is designed to help Irish companies broaden their reach into more competitive, demanding but more profitable overseas markets.