Dáil Éireann Debate, Thursday - 16 December 2004
133 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the action he has taken to address the issue of job relocation to low wage economies; and if he will make a statement on the matter. [33998/04]
View answerWe have become a more sophisticated and developed economy in which the application of technology and intellectual endeavour is becoming more important than simple cost competitiveness as the foundation for growth and prosperity. We now have one of the most open economies in the world in which trends in world trade, global business investment and consumer decisions directly influence the pattern of economic growth, company development and job prospects more so than in other developed economies.
A balanced combination of pro-enterprise policies has helped propel economic growth and employment expansion and these have encouraged deeper and stronger links to both the enlarging European Union markets and internationally. Consequently, enterprise and society have benefited significantly from the ability of entrepreneurs to operate more profitably both in and from Ireland.
Naturally a more attractive cost environment abroad will inevitably entice some firms which are unable to generate their required return from the modern enterprise economy into which we have transformed. A continuing structural evolution of our economy is both unavoidable and necessary to maintain present levels of growth and low unemployment. With this, some plant transfers and other adjustments are bound to come, but where relocation has occurred to date, it has largely been limited to relatively low technology, labour intensive activities.
To counterbalance the competitive threat from lower wage competitor economies, our policy is to encourage a move to higher levels of productivity and value added products and services. Sustainable employment will be driven by companies with higher profitability which are more technologically advanced and prove a better fit with the competitive characteristics of the economy and are, therefore, less likely to move on the basis of simple cost influences. This new investment will be sourced by a combination of developing existing clients and new investors in existing or new activities or sectors. The enterprise development agencies have a clear mandate to align their operations with this policy objective.
The latest data from the Central Statistics Office's quarterly national household survey shows that employment increased by 57,200 on the corresponding period in 2003, bringing the total number in employment to a record 1,893,600. This is a remarkable achievement at a time when there is considerable debate and comment about the impact of competition from lower wage economies on employment levels in developed economies.
