Dáil Éireann debate -
Wednesday, 4 Jul 2007

Other Questions.

Job Creation.

Sean Sherlock

Question:

6 Deputy Seán Sherlock asked the Minister for Enterprise, Trade and Employment if his attention has been drawn to the enterprise element of the special local area plan for Mallow recently agreed; if he will be seeking assurances or commitments from Greencore, or if he will be targeting particular resources from his Department or its agencies, to ensure employment opportunities are created on the site of the former sugar factory in Mallow; and if he will make a statement on the matter. [18611/07]

Deputy Micheál Martin

The industrial development agencies work closely with local interests in Mallow for the purpose of advancing the attractiveness of Mallow as a location for both indigenous industry and foreign direct investment. In this regard, Enterprise Ireland was involved with the Mallow development partnership and contributed to a commissioned plan on an integrated development strategy for the town undertaken by outside consultants. The plan took an overall view of the town's potential, particularly in the areas of industrial development, retailing, housing, education and sport. The agencies will work closely with the local area plan for the town.

On 21 March 2006 the Taoiseach, the Minister for Agriculture and Food, the Minister of State at the Department of Enterpise, Trade and Employment, Deputy Michael Ahern, and I met a delegation of various interests and concerned parties in regard to the sugar factory site in Mallow. At the time I indicated my intention to ensure possible alternative uses of the company's facility would be explored. There is now a €500 million development plan for the site. This includes enterprise space of 800,000 sq. ft., a hotel, recreational facilities and plans to create up to 2,000 jobs. This is without doubt a very significant initiative for the Mallow area. The development will add greatly to the ongoing development of the town. In addition, Enterprise Ireland has had discussions with the company about the development of land in Mallow. The agency is prepared to consider supporting any suitable projects that might emerge.

IDA Ireland is marketing six hectares of remaining land at Mallow Business Park. There are now eight companies located on the park, employing approximately 120 people. A new office block of 2,000 sq. m is also nearing completion. As a means of improving the attractiveness of Mallow for further investment, the IDA has engaged in a programme of works at its business park consisting of road repairs, the upgrade of water mains and sewers and the construction of a new entrance. The agency has also appointed a landscaping consultant to design complementary landscaping works for the park which will be completed in 2007. There are five IDA supported companies in Mallow employing approximately 540 people, including more than 450 employed at the Kostal facility outside the town.

The development of indigenous industry in Mallow continues to be supported by Enterprise Ireland. The pumping equipment company, EPS, employs more than 200 people in the town. I am satisfied the combined efforts of the industrial development agencies and local area interests will continue to bring new investment and job opportunities to the Mallow area.

Deputy Seán Sherlock

I join other Members in congratulating the Leas-Cheann Comhairle on his elevation and wish him well for the future.

An Leas-Cheann Comhairle

Go raibh maith agat.

Deputy Seán Sherlock

If I am in order——

An Leas-Cheann Comhairle

After that, the Deputy will be.

Deputy Seán Sherlock

I thank sincerely the people of Cork East for the privilege they have afforded me by electing me to the House. I look forward to working for them and on their behalf.

To be blunt, the Minister's reply has been heard many times before. He did not answer the question as I posed it and as it pertained to the Greencore site specifically. Although he met the Taoiseach and others in March 2006, much progress has been made since, in so far as a special local area plan has been adopted for Mallow. I was glad to participate in drawing up the plan, in which we designated 30 acres within the site to be used as a high environmental, quality enterprise and employment zone. The question on everyone's lips in Mallow and north Cork is whether an enterprise will be located on the site. The north Cork and wider east Cork region has been dealt a savage blow in terms of job losses and the people of Mallow have high expectations for the site. The Minister should state whether there is a specific proposal because before the general election a Government backbencher made an announcement to the effect that an American company would make an announcement on job creation. Was the Minister aware of this so-called announcement? If such negotiations took place, did they bear fruit?

Deputy Micheál Martin

First, I replied to the question tabled. It asked whether my attention was drawn to the enterprise element of the special local area plan for Mallow. The answer is yes. My Department has been party to it, as have the enterprise agencies. The question continued by asking whether I had sought assurances or commitments from Greencore. When I met representatives from the company more than a year ago, I made it clear that I considered the site to have potential for the regeneration and economic development of Mallow. This is the reason I backed the workers strongly in respect of the redundancy issue which I considered to have the potential to clear the pitch, so to speak, in terms of a clear road map ahead. Sometimes the closure of something facilitates the birth of something new. In that context, I asked the agencies to work with the various interests in Mallow.

I was greatly struck by the professionalism of the urban council, of which the Deputy was a member prior to his election to Dáil Éireann — I congratulate him on his election. In particular, while I am not supposed to mention names in the House, the manager, Mr. Tim Lucey, had a clear focus. The agencies will work with county and urban councils, particularly in attracting investment to an area in which there are property solutions and business parks of high quality. There is the opportunity to so do in Mallow, to this site in particular.

I never discuss negotiations the IDA may be having with any company. I was delighted to be in Fermoy last week with the news in respect of Sanmina. This involved a €30 million investment in a contract manufacturer that has moved the company up the value chain and secured more than 400 jobs. There are 450 full-time and 250 temporary jobs. There would have been challenges had this not been achieved.

Enterprise Ireland will also work with indigenous companies. I was in Charleville relatively recently to open a company which had relocated from Cork city. People sometime fail to focus on such developments. They continue to think of major plants from overseas but much happens indigenously.

Deputy Seán Sherlock

As for the Government's support for the workers when the redundancy argument was ongoing, it washed its hands of the issue.

Deputy Michael Ahern

The Deputy's contention is wrong.

Deputy Seán Sherlock

Were it not for the intervention of Mallow Town Council and the members of Cork County Council, I believe strongly they would not have received their redundancy payments.

An Leas-Cheann Comhairle

Does the Deputy have a question?

Deputy Seán Sherlock

A statement was made by a Government backbencher prior to the election to the effect that an announcement on job creation at that site was imminent. The Minister has not answered this question adequately.

Deputy Micheál Martin

I do not accept the Deputy's statement regarding the Government's position on the workers. We had a number of meetings in that respect and I articulated my position clearly and publicly to the company, as did the Minister of State, Deputy Michael Ahern.

Deputy Michael Ahern

Successfully.

Deputy Micheál Martin

Thankfully. The labour relations machinery of the State kicked in to bring about a satisfactory outcome. Regarding the backbencher's statement, I suggest that Deputy Sherlock ask the Deputy about the announcement.

Deputy Arthur Morgan

Election licence.

Deputy Ruairí Quinn

Perhaps the Minister should ask the backbencher.

Deputy Micheál Martin

It is a long-standing precedent that the Minister does not comment or speculate on a potential investment in any way.

Deputy Seán Sherlock

The people of Mallow would like to know whether the jobs are coming.

An Leas-Cheann Comhairle

While I am obliged to call the next question, I will call Deputy Hogan for a brief supplementary question because I did not catch his eye a minute ago.

Deputy Phil Hogan

In the context of the development of Greencore's sites in Mallow, what is the up-to-date situation in Carlow?

Deputy Micheál Martin

The Deputy would know more than I.

An Leas-Cheann Comhairle

It is a stretch on the question, but the Minister should reply briefly.

Deputy Micheál Martin

It is a matter for the public representatives on Carlow County Council.

Deputy Phil Hogan

The Minister ought to know a thing or two about Greencore.

Deputy Micheál Martin

I am anxious to see development everywhere.

Deputy Phil Hogan

So am I.

Industrial Development.

Joe McHugh

Question:

7 Deputy Joe McHugh asked the Minister for Enterprise, Trade and Employment the way he will expand the role of FÁS and Enterprise Ireland in the coming years; and if he will make a statement on the matter. [18999/07]

Deputy Micheál Martin

The role and functions of FÁS are reviewed on an ongoing basis. The current FÁS strategy statement outlines the vision and direction for FÁS for the period 2006 to 2009. The strategy is closely aligned with the policy goals of my Department and was developed in close collaboration with it.

The current FÁS strategy recognises the changes in the labour market, including the relatively low level of unemployment, and places an increased emphasis on the need to upskill those at work. Additional funding has been provided to FÁS to enable it to increase capacity and activity in this area through its One Step Up programme and other initiatives.

In line with the programme for Government, we will work to expand the role of FÁS to increase the employers' commitment to training, particularly in the SME sector. To date, FÁS has funded management development in the SME sector through two projects run by the Small Firms Association and the Irish Small and Medium Enterprises Association at a total cost of €2 million. Last month, the FÁS board approved six projects costing €10 million for the same purpose. I also recently established a management development council for the SME sector to facilitate the provision of appropriate management development training for businesses and to promote its importance.

Enterprise Ireland's current strategic plan, Transforming Irish Industry, for the period 2005 to 2007 will be completed at the end of this year. Consequently, Enterprise Ireland is formulating a new strategic plan for the period 2008 to 2010, which will fully incorporate national policy and the findings of the Enterprise Strategy Group and the Small Business Forum. I will consider Enterprise Ireland's new strategic plan in the autumn, in respect of which we are working.

Enterprise Ireland is an enterprise development agency with a mandate to provide a range of different supports and funding options to manufacturing and internationally trading companies. These supports are provided across the full range of business functions on the basis of demonstrated need and in the context of the potential return that may accrue to the State from those interventions. Enterprise Ireland has a wide remit covering the full gambit of business development needs, ranging through marketing, sales, productivity, research and development, management development etc. These supports are provided where appropriate through Enterprise Ireland's business development model. This is a recognition that State supports in assisting companies should be offered in a holistic manner, maximising their impact where they mutually reinforce one another rather than acting as stand-alone offers.

Enterprise Ireland works in partnership with companies. In the context of a long-term business development plan, it advocates and persuades as to the benefits of activities such as management development and training. Necessary supports are provided if it is in the best interests of the company's growth prospects, if need is demonstrated by the company and if Enterprise Ireland's intervention is justifiable.

Deputy Phil Hogan

I welcome the Minister's statement on Enterprise Ireland and the strategy for the coming three years that is under discussion. In recent months, the Minister launched a document on upskilling the labour force. A significant reorientation of FÁS is needed. Will the Minister introduce measures this year to demonstrate that the objectives laid out in his future skills strategy programme will be implemented and what role will FÁS play therein?

Deputy Micheál Martin

With the science, technology and innovation strategy, the national skills strategy will be a fundamental pillar of economic policy during the coming years. Both are essential for the country's competitiveness. The national skills strategy does not relate to FÁS alone. Rather, it is concerned with upskilling the workforce. We concentrated on the unemployed in previous decades, as we will continue to do, but the emphasis must move to upskilling those at work and increasing their qualification levels, for which there is a good appetite in the workforce.

FÁS will have a significant role in this regard, as will the institutes of technology, colleges of further education and education providers in general. We want to broaden this aspect. There is no point in reinventing the wheel or creating new programmes when there are existing resources in the education and training fields. Ireland will face a considerable challenge in terms of the upskilling agenda and all of the institutions, including FÁS, have a role to play and should compete to provide for the requirements of the State.

Deputy Arthur Morgan

Ar dtús baire, comhghairdeas mór duit ar an post nua, a Leas-Cheann Comhairle, agus fosta to all the new Ministers who have been appointed.

An Leas-Cheann Comhairle

Go raibh maith agat.

Deputy Arthur Morgan

Is FÁS examining ways to make a connection between retraining and upskilling and the institutes of technology and, in particular, workers in the construction industry, many of whose jobs would be at significant risk in the event of a relatively minor slow-down in the sector? Does the Minister accept that FÁS was criticised for being slow and old-fashioned when dealing with businesses and enterprise in general and when upskilling workers in that regard?

Deputy Phil Hogan

Arising from the Minister's reply, will he accept that if there is no incentive for employers to carry out a programme of retraining and upskilling in the factory or business, it is unlikely to be successful? What negotiations are under way between employer groups and trade unions to ensure the objectives outlined in the future skills strategy lead to an incentive for employers, which is obvious, and to time being made available in the working day for upskilling programmes on the factory floor?

Deputy Micheál Martin

Strong linkages are developing between FÁS and the institutes of technology in terms of skills, a good example of which is the LÍONRA initiative in the north west involving institutes from Letterkenny to Sligo and Galway. The idea is that where there can be complementarity, there should be, and where institutes can provide a certain component of training or programmes, they should do so. FÁS can contract out to the institutes to provide specific programmes. They should not compete to get the same business. Rather, we should try to get higher standards and quality of provision.

Regarding the construction industry, we had to increase the apprenticeship provision in this year's Estimate by €17 million because of bottlenecks. The overall amount for apprenticeships this year will be €128 million with approximately 19,600 places in FÁS and the institutes of technology. Despite all the commentary, demand was still present last year and coming into this year. It is worth pointing out.

Deputy Arthur Morgan

It is turning.

Deputy Micheál Martin

FÁS is rising to the challenge of upskilling. When the business forum produced its report and identified a deficiency in management capability training in the country and the need to do better in that respect, FÁS stepped up to the mark and worked with the SMEs on training programmes.

On Deputy Hogan's comment, the best model of upskilling in and incentivising businesses I have seen is Skillnets, to which the State makes a substantial contribution while the companies make some contribution. I understand it is on a 50:50 or 60:40 basis, depending on the nature of the schemes. It has been a runaway success and is the type of partnership initiative of which I wish to see more. That is why we expanded significantly the funding for Skillnets in the medium term to 2009.

Consumer Rights.

John Perry

Question:

8 Deputy John Perry asked the Minister for Enterprise, Trade and Employment when on-the-spot fines for breaches of consumer law will be introduced; and if he will make a statement on the matter. [18996/07]

Deirdre Clune

Question:

16 Deputy Deirdre Clune asked the Minister for Enterprise, Trade and Employment how he will make consumers more aware of their rights; and if he will make a statement on the matter. [18997/07]

Deputy Micheál Martin

I propose to take Questions Nos. 8 and 16 together.

Section 85 of the Consumer Protection Act 2007 provides that an authorised officer of the National Consumer Agency who has reasonable grounds for believing a person is committing, or has committed, a relevant offence may serve, personally or by post, a notice, popularly known as an on-the-spot fine, for an offence or offences relating to price display and product pricing.

The fixed payment provision is an innovative option which expands the suite of enforcement functions at the National Consumer Agency's disposal and should ensure a greater compliance with consumer protection law. Section 85(3) of the Act provides that the fixed payment notice shall be in the prescribed form, and section 2 provides that "prescribed" means prescribed by regulations made by the Minister. The agency is currently preparing the template for the fixed payment notice and expects to be in a position to submit it to the Minister in the near future. The necessary regulations will be made in consultation with the Office of the Parliamentary Counsel as soon as possible thereafter.

With regard to awareness raising, section 8 of the Act places a specific obligation on the agency to promote public awareness and conduct public information campaigns for the purpose of educating and advising consumers on consumer protection and welfare. Even prior to its establishment as a statutory entity, the National Consumer Agency conducted a number of high-profile campaigns to raise awareness of consumers' rights, including its shoppers' rights card and Know your Rights campaigns. Given the NCA's commitment in this area and its specific statutory mandate, I am confident that raising awareness of consumers' rights will continue to be a focus of the agency's activities in the future.

Deputy Phil Hogan

Does the Minister agree there is a low level of consumer awareness? I accept there is a motivation, through the establishment of the National Consumer Agency, to correct the deficit in information for consumers. For whatever reason, Irish people are not aware of their rights to the same extent as consumers in other jurisdictions. A concerted initial effort is required by the National Consumer Agency to ensure people are fully informed. Is there a specific initiative that the Minister will advise the National Consumer Agency to undertake to ensure citizens have the best possible information about their consumer rights?

Deputy Micheál Martin

There is no doubting the validity of the Deputy's point about the need substantially to increase awareness among consumers of their rights and to advocate on the basis of the need to assert those rights when purchasing goods or services. If we can achieve that, we will improve competitiveness in the economy.

The Consumer Protection Act specifies the precise function of the National Consumer Agency in the promotion of public awareness and information campaigns. The agency enjoyed success last year with its shoppers' rights cards and Know your Rights campaigns. It recently launched a guide to buying a car for consumers purchasing new and second-hand cars. This aims to increase consumer awareness of their rights on issues that may arise when buying cars. The agency systematically updates its website on consumer issues, which we launched last year, providing consumer tips and responding to topical issues as they arise in the press and on the website. To coincide with the ploughing championship next September, the agency will release leaflets and pamphlets on various consumer rights topics.

Deputy Phil Hogan

We cannot wait.

Deputy Micheál Martin

The Deputy asked about specific upcoming projects, so I am being specific in my reply. The agency recently commissioned consultants who will work to produce a publication in October or November, entitled Construction and the Consumer in Ireland. Also in autumn, the agency will release a guide on the consumer and bereavement.

Question No. 9 withdrawn.

Industrial Development.

Aengus Ó Snodaigh

Question:

10 Deputy Aengus Ó Snodaigh asked the Minister for Enterprise, Trade and Employment the progress of the high level working group on manufacturing in reviewing the challenges faced by workers in vulnerable sectors, and proposals they have made. [18805/07]

Lucinda Creighton

Question:

33 Deputy Lucinda Creighton asked the Minister for Enterprise, Trade and Employment the latest activities of the high level group on manufacturing; and if he will make a statement on the matter. [18994/07]

Deputy Micheál Martin

I propose to take Questions Nos. 10 and 33 together.

The high level group on manufacturing was established under the Towards 2016 social partnership agreement. Its terms of reference as set out in section 7 of that agreement are to review the challenges facing the manufacturing sector and, having regard to initiatives currently under way, identify any further measures that would help to meet those challenges. The group comprises four representatives from IBEC, ICTU and the Government, and is chaired by a senior industry representative. My Department is providing the secretariat for the group.

The group has met on five occasions since February of this year and is examining a range of issues concerning the performance of the sector and the challenges it faces. Since it was established under the auspices of the partnership process, it will report on its deliberations to that forum in the first instance. While it is a matter for the group to determine its schedule of meetings and timescale for reporting, I understand it hopes to complete its deliberations by the end of the year.

Deputy Arthur Morgan

Does the Minister accept that the last Government failed to replace jobs, particularly in the manufacturing sector, in regional towns? There have been significant losses in this regard. Has the high level working group on manufacturing made any specific recommendations to the Government? If so, when will we be told what those recommendations are? Has the group identified sectors that would make suitable replacements for declining manufacturing industry and the skills needed for the workforce to become employable in target sectors?

Deputy Micheál Martin

The commentary on manufacturing has been overplayed. The NCB report of 14 June on Ireland's competitiveness takes a more robust position than that of some other commentators. The report argues that Ireland's competitive position is safe. However, I do not accept we can ever be safe; it is essential to safeguard our competitiveness.

It is worth pointing out that the yield from manufacturing has been significant. We have lost jobs in some traditional sectors but manufacturing continues to be an important and integral part of the economy, directly employing some 250,000 persons. Output grew by 35% in volume terms and turnover increased by 16% in 2005. Employment decreased by 11%, which may be a combination of outsourcing or improved technology and innovation. High value manufacturing continues to be a key driver of innovation and technological advance.

The working group, which was established under Towards 2016, has not yet made recommendations either to me or to the social partners. I have met with the chairperson and I look forward to clear, implementable recommendations being brought forward.

Deputy Arthur Morgan

When?

Deputy Micheál Martin

We must be balanced in how we describe and comment on manufacturing. The Government is committed to the sector. It is changing, however, and we have a different type of manufacturing from what we had five years ago.

Deputy Arthur Morgan

Can the Minister allay the concerns of many that this working group may be little more than a talking shop and that there is no date for delivery of recommendations and no specific timeframe for an outcome? Must we wait until 2016 to see results?

Deputy Micheál Martin

The indications are that the working group will complete its deliberations by the end of the year, if not sooner.

Deputy Phil Hogan

Has the Minister received representations from the Irish Exporters Association regarding its worries about port capacity to deal with the transport of goods onto mainland Europe? We must ensure an appropriate infrastructure is in place to deliver our manufacturing goods to the marketplace.

Deputy Micheál Martin

This is an issue of which I am aware from my discussions with representatives of the port authorities earlier this year. The issue of port capacity was raised with the Irish Exporters Association at its annual awards event. As the fundamental vehicle through which we export much of our goods, it is important we expand and develop our port capacity.

The Deputy asked about manufacturing.

Deputy Phil Hogan

I asked the Minister whether he is aware of the representations he might have received from the Irish Exporters Association in the context of ensuring we have a port capacity appropriate to transporting our manufactured goods to mainland Europe.

Deputy Micheál Martin

I am aware.

Departmental Prosecutions.

Joe Costello

Question:

11 Deputy Joe Costello asked the Minister for Enterprise, Trade and Employment the number of prosecutions taken by him or by agencies under the aegis of his Department under Acts (details supplied) for each year from 2002 to 2006 and to date in 2007; and if he will make a statement on the matter. [18608/07]

Deputy Billy Kelleher

The Acts are the National Minimum Wage Act 2000, the Organisation of Working Time Act 1997, the Industrial Relations Acts 1946-2001, the Protection of Young Persons (Employment) Act 1996, the Payment of Wages Act 1991, the Employment Agency Act 1971, the Protection of Employment Act 1977, the Protection of Employees (Employer's Insolvency) Acts 1984-2003, the Carer's Leave Act 2001 and the Parental Leave Act 1998

The number of prosecutions initiated by my Department or by agencies under the aegis of my Department under the Acts included in the question for each year from 2002 to 2006 and to date in 2007 is set out in the following table.

Legislation	2002	2003	2004	2005	2006	2007 to Date
National Minimum Wage Act 2000	3	0	1	0	1	0
Organisation of Working Time Act 1997	3	0	1	0	3	2
Industrial Relations Acts 1946-2004	10	6	42	37	56	27
Protection of Young Persons (Employment) Act 1996	12	19	10	22	2	4
Payment of Wages Act 1991	3	0	0	0	0	0
Employment Agency Act 1971	0	0	0	0	0	0
Protection of Employment Act 1977	1	0	0	0	0	0
Protection of Employees (Employers Insolvency) Acts 1984-2003	0	0	0	0	0	0
Carers Leave Act 2001	0	0	0	0	0	0
Parental Leave Act 1998	0	0	0	0	0	0
Totals	32	25	54	59	62	33

The primary role of the labour inspectorate in the case of breaches of employment rights legislation is to seek compliance and rectification of any breaches identified, including redress for the individuals concerned and payment of any arrears due to employees. In this regard, the labour inspectorate in 2006 recovered from some 349 employers arrears of pay amounting to almost €1.4 million.

The Deputy should be aware that rights commissioners of the Labour Relations Commission, a body independent of my Department, also hear complaints concerning breaches of the National Minimum Wage Act 2000, the Organisation of Working Time Act 1997, the Carer's Leave Act 2001, the Parental Leave Act 1998 and the Payment of Wages Act 1991. In addition, unions may make a complaint to the Labour Court under section 32 of the Industrial Relations Act 1946 in respect of breaches of a registered employment agreement, while section 45 of the 1946 Act provides that employees may initiate proceedings in respect of failure to comply with the minimum wage conditions of an employment regulation order. Under the Carer's Leave Act and Parental Leave Act, the Minister may prosecute only in respect of offences relating to the obstruction of authorised officers as redress for other contraventions is required to be made through a rights commissioner.

Job Losses.

Jim O'Keeffe

Question:

12 Deputy Jim O’Keeffe asked the Minister for Enterprise, Trade and Employment his views on the recent spate of job losses and evidence of reduced investment here; and the measures he will take to reverse these trends. [18795/07]

Deputy Micheál Martin

While all company closures and their associated job losses are to be regretted and their impact on a personal, community and national level should never be underestimated, these losses have occurred during a period of unprecedented job creation. Well over half a million jobs have been created in the past six years. In the 12 months to February 2007 the number of people in employment increased by 16,000.

Overall, Ireland has performed very strongly over the last few years. However, as the country's economy moves to higher value added activities and providing quality sustainable jobs, some traditional lower cost industries throughout the country are under pressure and other lower value activities are transferring out of Ireland. This shift in the structure of international trade poses challenges to economic policy makers in all developed countries. The Government will continue to pursue policies to promote lifelong learning and upskilling to improve labour market flexibility and will ensure where necessary that appropriate training supports are provided for workers in sectors that are no longer competitive and assist workers who lose their jobs in finding alternative employment.

It must be remembered that Ireland also experiences the benefits resulting from globalisation as new markets and business opportunities open up for Irish companies. The level of foreign direct investment in Ireland relative to the size of the economy also remains one of the highest in the world. While competition from emerging markets for FDI has intensified, Ireland continues to punch above its weight when it comes to attracting overseas investment. Although our relative costs are now higher, we have responded nationally to a changing environment by positioning ourselves as the location for more advanced activities with more qualified and better paying jobs.

During 2006 IDA Ireland successfully marketed the country as a location for 71 new investments valued at more than €2.6 billion over the next few years. The agency also successfully negotiated 54 research and development projects representing an investment of almost €470 million. Ireland is now a global competitor for research and innovation investment from multinational companies and leading research institutions.

Notwithstanding these positive developments, the Government, my Department and the enterprise development agencies are not complacent about the future challenges facing the country's economy. One of our main tasks is to ensure Ireland remains an attractive place to do business and to support the development of economic competencies higher up the value chain. In that regard, we continue to work to maintain and enhance our framework competitive conditions, and promote new areas of competitive advantage by developing our research and development base, investing in critical physical and communications infrastructures and promoting tertiary education and lifelong learning.

Deputy Jim O’Keeffe

I ask the Minister to provide a realistic assessment of the present situation. The election is over and I am merely asking for an assessment of where we stand. How serious is the problem? We have had evidence in recent times of quite a number of job losses and, more worrying, losses in high value sectors in which we prided ourselves on our competitiveness. How does the Minister view the present situation, taking into account those factors?

What is the current position with regard to foreign direct investment? In the past we received a high proportion of the FDI going to Europe but the percentage seems to have decreased greatly in recent times. Does the Minister accept that is a worrying trend?

Is it clear that our competitiveness is being called into question compared to others who are competing for the same jobs? A recent IBEC magazine report referred to Ireland as one of the most expensive countries in Europe for energy. Clearly, energy is a major factor in many industries. There is a problem but how serious is it and is the Government facing up to it? What measures are being taken to address the problem?

Deputy Micheál Martin

We are in a globalised world, which means we can never stand still but must consistently look ahead and ask where we should be in five or ten years time. That is the approach I take as Minister for Enterprise, Trade and Employment and the reason for my concentration on the science and technology innovation strategy published last year. I worked with eight other Departments under the aegis of the strategy for science, technology and innovation Cabinet sub-committee to say to the world that Ireland is moving up the value chain, particularly in the area of fourth level research, and that we want to become a world-class centre for innovation and the development of new products, services and ways of doing things. We have also put in place the national upskilling strategy, which is intended to make sure that all the people working in the economy at present can explore ways of increasing their qualifications and certifications, be more flexible and adaptable and rise up the value chain.

In terms of our current position, I refer Deputy Jim O'Keeffe to the 2006 annual report from IDA Ireland. Last year was probably one of the best in the past five to six years for FDI. The quality of FDI, which is the key issue, is of the highest standard. Companies such as Amgen, notwithstanding its decision to delay, chose to come to Ireland as opposed to anywhere else. Glaxo Smithkline and Beecham have made significant investments in the pharmaceutical sector. The first ever drug discovery centre has been established in tandem with the alimentary pharmabiotics centre in UCC. PepsiCo, eBay, Amazon, Georgia Tech in Athlone and Google, with up to 96 language competencies in Dublin, are further examples of companies locating in Ireland. In the higher end sectors of digital media, financial services such as Northern Trust in Limerick, medical devices and pharmaceutical and biopharma, Ireland is punching above its weight and doing very well.

Deputy Jim O’Keeffe

I take it the Minister has an early warning system in place in his Department.

Deputy Micheál Martin

Yes.

Deputy Jim O’Keeffe

Is that system giving signs of trouble in the short term and can we anticipate difficulties in the near future in terms of employment?

Deputy James Reilly

I congratulate the Minister and the Ministers of State on their appointment.

Given the increasing competitiveness faced by Irish industry and the critical importance of research and development to our future growth and competitiveness, what plans, if any, has the Minister to increase funding for research and development? More specifically, will the Minister tell us what the spending was in 2005 and 2006 and what he plans to spend in 2007? I am not seeking definite figures but rough estimates.

Deputy Micheál Martin

I congratulate Deputy Reilly on his election. He asked questions of me in a different context previously, when I held a different portfolio. Deputy O'Keeffe asked about competitiveness and the early warning system. We get early warnings related to specific companies.

The current commentary on manufacturing is quite positive. Following the prolonged period of slow growth in continental Europe, we have seen a growth in Irish manufacturing. It reached a low ebb in 2004 and 2005 but last year, with the emergence of more robust activity and growth elsewhere in Europe, manufacturing in this country began to recover and output grew by 5.2%. In the first quarter of this year, the recovery accelerated sharply and output was over 14% higher than a year earlier. The strengthening growth in employment in the first quarter is a further indication that the recovery is solidly based. Some economists are expressing the view that manufacturing is recovering very well and is in a very solid position overall because of a more robust European market position, which has led to increases in exports.

We get early warnings related to specific companies. If a particular company is in difficulty, agencies such as Enterprise Ireland will notify the Department. We try to work with those companies to determine whether we can salvage anything. Obviously, the communication would be confidential because the companies ——

Deputy Jim O’Keeffe

Would that be initiated by the companies?

Deputy Micheál Martin

It would be initiated by the company or the agency. On an ongoing basis, companies would contact the agency and——

Deputy Jim O’Keeffe

Do we not have an overall monitoring of the situation?

Deputy Micheál Martin

We have an overall monitoring of the economy and of broad sectors. I prefer to look at these situations as challenges.

To deal with Deputy Reilly's point, the Forfás annual report contains very good data on the dramatic increases in research and development expenditure over the past few years, particularly in 2006 and 2007. I do not have the specific figures here but sufficit to say our plans are very clearly articulated in the science and technology innovation strategy which aims to do the following: double PhD numbers by 2013; double the business spend on research and development between now and 2013; strengthen the partnerships between industry, universities and institutes of technology, in which the Minister of State, Deputy Michael Ahern will have a key role; increase the technology transfer from third level campuses to businesses; and increase participation rates in science and information technology courses.

Labour Inspectorate.

Kathleen Lynch

Question:

13 Deputy Kathleen Lynch asked the Minister for Enterprise, Trade and Employment the number of labour inspectors currently employed by the labour inspectorate of his Department; the number of labour inspectors currently available for assignment on normal duties; the number of labour inspectors currently in training following recruitment; the status of the recruitment campaign to increase the labour inspectorate to 90 inspectors; and if he will make a statement on the matter. [18597/07]

Caoimhghín Ó Caoláin

Question:

15 Deputy Caoimhghín Ó Caoláin asked the Minister for Enterprise, Trade and Employment the progress he has made in increasing the labour inspectorate; the proposed timetable for subsequent increases to the labour inspectorate; and if he will make a statement on the matter. [18802/07]

Damien English

Question:

47 Deputy Damien English asked the Minister for Enterprise, Trade and Employment when the number of labour inspectors will reach 90; and if he will make a statement on the matter. [19002/07]

Deputy Billy Kelleher

I propose to take Questions Nos. 13, 15 and 47 together.

The delivery of commitments on employment rights under Towards 2016 is a key priority for the Government. The necessary resources to ensure their delivery have been provided. One of the main commitments under Towards 2016 is the establishment of the National Employment Rights Authority, NERA. NERA has been established on an interim basis with Department of Finance sanction for 141 staff. The director of NERA has been appointed and took up duty on 12 February 2007. The management and administrative team are substantially in place. As part of the Government's decentralisation programme, NERA will have its headquarters in Carlow and the Carlow premises will be ready for occupation by the end of July 2007, with the full complement of management and administrative staff in place.

Three units, which were formally part of the Department of Enterprise, Trade and Employment, have been subsumed into NERA, namely, the employment rights information unit, the labour inspectorate and the prosecution and enforcement unit. The social partnership agreement, Towards 2016, provides that the number of labour inspectors will be progressively increased from 31 to 90 by the end of 2007. Recruitment of the additional labour inspectors is progressing.

Seven new labour inspectors were appointed in April 2007, one of whom has reverted to his former office. The remaining six have undergone intensive training and have now commenced on-the-job training.

Advertisements were placed in the national newspapers on Sunday, 10 June to recruit the ten inspectors with specific language skills, namely, Polish, Lithuanian, Latvian, Russian and Chinese. The closing date for this competition is 5 July 2007.

Agreement has now been reached with the Civil Service unions regarding the recruitment process for the remaining additional 43 inspectors. The recruitment process has now been initiated with a view to all assignments being made by the end of 2007, in accordance with the commitment under Towards 2016.

Deputy Ruairí Quinn

I wish the Minister of State well but his progress to date in ramping up the recruitment to 90 staff has not been satisfactory. Will he meet the targets before the end of 2007, which is not too far away?

Deputy Billy Kelleher

An issue arose with the unions regarding the recruitment process but that has now been addressed. As soon as it was addressed, advertisements were placed in the national newspapers. I am quite confident we will meet the commitments we made in Towards 2016 by the end of this year. We will then have 90 inspectors, including some with special language skills.

Written Answers follow Adjournment Debate.