Written Answers. - Job Protection.
Bernard J. Durkan
Question:
163
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the number of jobs which have relocated to low wage economies in each of the past three years; and if she will make a statement on the matter.
[30133/03]
Bernard J. Durkan
Question:
164
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the results of her efforts to combat job losses to low wage economies; and if she will make a statement on the matter.
[30134/03]
Bernard J. Durkan
Question:
169
Mr. Durkan
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the number of jobs created in each of the past five years; the number lost in the same period; and if she will make a statement on the matter.
[30139/03]
I propose to take Questions Nos. 163, 164 and 169 together.
Maintaining Ireland's attractiveness as a profitable European location from which to do business is a key priority for both the Government and my Department. However, it is that our economy is undergoing fundamental change and we can no longer be seen as a low cost location for basic manufacturing investment. Our strength and competitive advantages vis-à-vis emerging economies and rapidly developing overseas growth centres has changed considerably over the past few years. Primarily, this arises because we have become a modern, advanced European economy. Consequently, competing in international markets with low value added services or low technology, basic manufacturing industrial activity, no longer matches the competitive characteristics of doing business in modern Ireland. In a globalising business world it is inevitable that the investment decisions of some companies will be influenced by the competitive attractions of alternative business locations. My Department and its agencies are acutely aware of this and what business needs to tackle this reality. However, no measure is available to accurately quantify jobs that may have relocated to other countries.
We must acknowledge that Ireland operates in a global economy and that market forces influencing investment decisions will be both pervasive and unrelenting. Our response needs to be strategic yet reflect the business needs of companies. A key element of the Government's strategy to help enterprise is to encourage increased levels of investment in research, business-related technological development and innovation across all enterprise sectors. This will assist firms to produce improved, value added products and services. In the long-term, this will provide more sustainable and higher quality jobs. To this end, the budget for Enterprise Ireland targeted at increasing research and innovation in Irish companies, has been significantly increased in recent years.
This year Enterprise Ireland launched a new financial support package for indigenous industry to assist with clients' development needs. The agency has also launched the €10 million competitiveness fund, designed to build competitiveness in small and medium enterprises, particularly those that have found new product development a difficult process. 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 businesses broaden their reach into competitive and demanding, but more profitable overseas markets.
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 is intended to drive long-term growth and competitiveness by helping attract new high technology firms to Ireland and strengthening the capabilities of existing foreign and Irish owned enterprises.
We are also implementing a careful progression in the sophistication and breadth of higher value activities that foreign owned 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. I am glad to observe that the higher priority my Department accords to quality inward investment projects is reflected in a number of superior, new strategic projects that have been secured. Furthermore, good success has been achieved by IDA Ireland in encouraging their clients to undertake more important strategic research and development in their Irish operations.
Recent innovations in the support package available to investors, such as the changes to the taxation treatment for head office operations and research and development, clearly demonstrate the high priority Government accords to ensuring that Ireland aligns its business supports to the competitive requirements of doing business here.
I share the concerns of the Deputies about the impact of international market forces on enterprise in Ireland and I want to see new foundations for enterprise policy that will help create the conditions to support a sustained shift to a higher skilled, higher value added and a more knowledge intensive enterprise economy. In this connection, I have recently set up a new enterprise strategy group, under the chairmanship of Mr. 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 the group to examine the issues that need to be taken into account to help strengthen our enterprise environment, to promote a very different innovation and knowledge driven economy and help sustain those industries already providing employment here, as well as addressing the competitive challenges presented by developing economies elsewhere.
There have been job gains and losses over the last five years. While figures for 2003 are not yet available, it is expected that the uncertain global climate, which has continued through much of the year will impact on employment in companies supported by my Department's agencies. While net employment growth in the period 1998 to 2000 was strong, we could not expect to be insulated from declining global growth. This is reflected in some employment reduction in client companies of the agencies for 2001 and 2002. However, these companies generated over 30,500 new jobs in 2001 and almost 25,600 in 2002. In the context of difficult economic conditions, should properly be viewed as considerable achievement. The impact of the global economic slowdown on firms ability to sustain and expand employment has been undeniable, and the Deputies should note that current levels still represent a 50% increase in employment in the space of a decade.
Question No. 165 answered with Question No. 145.
