Dáil Éireann Debate, Thursday - 13 May 2004
47 Mr. Quinn asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she intends to take to counter the growing trend of jobs being transferred to lower cost countries; and if she will make a statement on the matter. [13834/04]
View answer74 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she has taken or proposes to take to minimise job relocation to low wage economies; and if she will make a statement on the matter. [13874/04]
View answerI propose to take Questions Nos. 47 and 74 together.
The Irish economy has been undergoing substantial change which has impacted on both the manufacturing and service sectors. A fundamental shift in our strengths and competitive advantages has taken place and the economy is now one typified by high output and productivity together with high returns to labour in the form of wages, salaries and better living standards. Ireland has become a more prosperous and wealthy economy, converging with the broad income and prosperity levels of other EU member states.
The change taking place across our enterprise base will continue and is inevitable. With this, some plant transfers and other adjustments are bound to come. However, relocation to date has largely been limited to relatively low technology, labour intensive activities. In an open Europe, with no restrictions on where people can work or where investors can do business, there will always be competition for investment.
Figures released in March by the Central Statistics Office show a growth in total employment of more than 60,000 jobs between the end of 2001 and the end of 2003, a strong performance given global economic conditions in the same period. One of my key objectives is to develop a competitive economy that will be resilient to the toughest competitive pressures, either from within the EU or elsewhere. However, it is not the Government but businesses that make these investment decisions. Consequently, I am committed to making sure that when companies decide to invest, Ireland has the reputation as a secure world class investment location to meet the most demanding business requirements and where our citizens have the skills to blend creativity and adaptability with the resourcefulness needed by knowledge businesses.
Both at national and EU level, my Government colleagues and I are working to ensure this happens. Arising from the most recent work of the National Competitiveness Council, the Government has decided that it will assess our competitive status every six months. My Department's focus on helping generate sustainable employment growth complements work that I am pursuing at a European level. As president of the EU Competitiveness Council, I am acutely aware that we have to work together with other member states to reinforce our national objectives. Items on the agenda that must be progressed include entrepreneurship, strengthening the internal market and putting in place EU framework conditions to deliver greater and more effective research, development and innovation. I am chairing a further meeting of the EU Competitiveness Council next week and will ensure that all Ministers will engage in detailed discussions about the direction of European competitiveness and employment growth.
Last July, I set up the enterprise strategy group to be the architect of new enterprise policies for the coming decade. I asked its chairman, Mr. Eoin O'Driscoll, to specifically look at what is needed for a competitive, knowledge-based enterprise economy. The group was also asked to specifically take account of international trends in globalisation and EU enlargement. I expect to receive this report around the middle of the year.
