I propose to take Questions Nos. 244, 246 and 247 together.
In the period 2003-2007, annual growth in total Irish exports has averaged 6.7%. In relation to Merchandise exports, the growth has averaged 2%, while Services exports grew at an average of 15.3% during this period. Services exports have risen steadily from 31% of total exports in 2003 to 43% in 2007. Of total exports of €154.4bn in 2007, our trade surplus was an extremely healthy €23.3 bn, the biggest surplus in any of those 5 years. This very positive trend was achieved despite poor economic growth in many of our trading partners and also against the backdrop of adverse exchange rate trends in our two biggest export markets, the United States and the United Kingdom, due to the rise of the Euro against both the US Dollar and Sterling.
In relation to manufacturing, this sector is in transition but is well positioned to meet future challenges. Ireland's manufacturing future depends on a manufacturing sector that is capital intensive, knowledge intensive and skills intensive, focused on developing innovative products, services and solutions and meeting the needs of markets and customers. The report of the High Level Group on Manufacturing, which was launched by Minister Micheál Martin, in April last, identifies the focused actions needed by employers, employees and Government to respond to challenges and take advantage of opportunities to further develop the sector in Ireland.
That report contains 26 recommendations, directed at the key areas of:
Innovation and productivity, leading to transformational change.
Reskilling and management development for the innovative firm.
Increasing awareness and take-up of existing supports.
The restoration of cost competitiveness, which is of critical importance.
The establishment of a Manufacturing Forum to progress the implementation of the recommendations outlined in the report and to act as a strong advocate and champion for the manufacturing sector.
The Government is committed to ensuring that the recommendations of this Group receive a high level of priority to ensure that the manufacturing sector continues to evolve and to provide high value added and high quality employment for the future. The report is currently being considered by the Social Partnership Forum, as part of the ongoing review of "Towards 2016".
In relation to Services, almost two thirds of the Irish workforce is currently employed in services and Ireland is now the 10th highest exporter of services in the world. The future performance in services activities will therefore be increasingly important to overall growth in the economy.
The Services Strategy Group, which was set up last year by Forfas and my Department, published its report — "Catching the Wave: A Services Strategy for Ireland", earlier this month. The report sets out new policy proposals on how the State can ensure the continued development and growth of Ireland's services sector. It deals with the following issues:
The impact of services on the national economy
Developing a Strategic Framework for Services
Exploiting opportunities for services to optimise impact on the national economy
Putting in place a support framework
Implementing a Services Strategy.
The recommendations in this report will guide the development of our services strategy into the future, to exploit the opportunities that this sector presents.