Dáil Éireann Debate, Thursday - 13 May 2004
21 Mr. McCormack asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the paper prepared by her Department in April 2004 and presented to EU Industry Ministers which warned against a pre-occupation with the threat of jobs moving to low cost locations; and if this represents a policy shift by the Government to seek no longer to protect the jobs of those who do not work in the high skilled sector. [13771/04]
View answerThe agenda for Dromoland and the paper prepared by my Department for the meeting were drawn up in the context of concerns within the Union about the issue of de-industrialisation, the extent to which it represents a threat to the EU's competitiveness and how the Union might respond to it. In addition to the Presidency paper entitled Forging Productivity Growth in Europe, the EU Commission introduced a new Communication entitled Fostering Structural Change: An Industrial Policy for an Enlarged Europe. The Commission communication similarly addresses the issue of structural change in European industry.
The Irish Presidency paper prepared for the Dromoland conference was designed as a contribution to the debate now under way within the European Union on how best to meet the challenges that the Union faces in light of increased global competition.
The Irish Presidency paper argued that there is a danger that a pre-occupation with de-industrialisation as a result of competition from lower cost countries could lead to inappropriate policies. "Stopping" industrial relocation is not feasible in an increasingly globalised economy. What is required is a range of policies that will lead to increased productivity and innovation within the European Union, including providing education on an ongoing basis to ensure that European workers have the requisite skills; that the Union is innovative in the creation of new products and services; and that the Union responds to the challenge of changing technology by promoting its ability to facilitate restructuring of industry.
The Commission's view, as set out in its communication, is that there is no evidence, at this stage, that a general process of de-industrialisation has been taking place in the European Union but that this gives no grounds for complacency. The communication also notes the Commission's view that weak productivity growth, insufficient innovation and investment in R&D, in a context of intensifying international competition and de-localisation, are challenging trends which, if sustained, could severely undermine the competitiveness of industry with serious consequences for the EU.
The Commission paper concludes that we have to face up to the challenges posed by international competition and suggests action on three fronts — improving the regulatory environment, optimising synergy between different EU policies and tailoring industrial policy to meet particular sectoral needs. The importance of promoting innovation, R&D, investing in human capital, the application of ICTs and robust competition policy are identified as key policy areas to help underpin the competitiveness of European industry.
This set of prescriptions mirror the view of this Government for some time now that the best way to safeguard sustainable employment growth both now and in the future is to create an environment that encourages entrepreneurship, stimulates company growth and promotes innovation.
