Dáil Éireann Debate, Wednesday - 15 November 2006
116 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the steps he has taken or proposes to take to address the issue of job relocation to the more competitive economies; the number of jobs so far lost to such locations; the number pending over the past five years; and if he will make a statement on the matter. [37951/06]
View answerIt is not possible to determine the number of jobs which have relocated to lower wage economies, nor can the number of posts awaiting relocation be identified. The offshoring of lower value-added functions is, however, part of the reality of modern global manufacturing for a highly developed economy such as Ireland.
There are a variety of differing and complex factors which might influence a decision to relocate all or part of a firm's functions. In addition to relative wage rates and other cost factors, these may include business takeovers, consolidations and changes in product or market focus. While offshoring can contribute to job losses for firms in some sectors, productivity gains achieved through offshoring also represents an opportunity to develop higher end manufacturing and related activities domestically.
Ireland no longer operates as a low cost location for investment: our strengths and competitive advantages have changed. Our economy is now characterised by high output and productivity, together with high returns to labour in the form of wages, salaries and better living standards. Higher technology and services enterprises are replacing low technology production, which in the past was the predominant source of economic output. The fact is that since 1999 overall employment has grown by 26.9%. We now have over 2 million people in employment, with historically low levels of unemployment.
My Department and the enterprise development agencies are continuing to work to ensure that Ireland remains an attractive place to do business. In that regard, we are making significant efforts to enhance our framework competitive conditions, and to promote new areas of competitive advantage, such as developing our R&D base as elaborated recently in the new Strategy for Science, Technology and Innovation. We are also continuing to pursue policies to promote lifelong learning and up-skilling to improve labour market flexibility and, where necessary, ensure that appropriate training supports are provided for workers in sectors that are no longer competitive, to help them find alternative employment.
Our priority remains the creation of high quality, sustainable employment, driven by companies with higher profitability, that are more technologically advanced and prove a better fit with the competitive characteristics of our economy, and that are consequently less likely to move on the basis of simple cost influences.
