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Job Losses

Dáil Éireann Debate, Thursday - 24 January 2013

Thursday, 24 January 2013

Questions (102, 108)

Bernard Durkan

Question:

102. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if, arising from any studies following the relocation of manufacturing or service jobs from this jurisdiction to others throughout the EU or otherwise over the past six years, a determination has been made as to any common factors causing such relocation; the extent to which any such factors have been addressed; the benefit of such action in terms of future projections; and if he will make a statement on the matter. [3673/13]

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Bernard Durkan

Question:

108. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department has identified the most commonly cited reasons for job losses in the manufacturing, services and commercial sectors in the course of the past five years to date; the extent to which he has addressed or intends to address the underlying issues in the short and medium term; and if he will make a statement on the matter. [3679/13]

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Written answers

I propose to take Questions Nos. 102 and 108 together.

While manufacturing has been an important sector in Ireland since the 1960’s, there has been a noticeable decline in numbers employed in this sector. This is not necessarily surprising and it echoes what has been happening in most developed economies. This has also been experienced in other industrialised countries such as Germany, UK, USA, Netherlands and Korea.

It is clear that, arising from greater globalisation, reduction of tariff barriers and the ease of transporting goods, the nature of industry and the location of specialisations will be changing and there will be an inevitable movement of production of lower-cost, less-specialised goods towards cheaper labour economies in Asia, for example. This is part of a wider global pattern. Although it is very challenging in an internationally competitive environment, there is considerable potential for the manufacturing sector in Ireland, as we are strongly placed to create opportunities and employment in many higher- value sub sectors, for example chemicals, pharmaceuticals, medical devices and food, amongst others.

Despite this trend, there are now 197,000 people directly employed in manufacturing (both full-time and part-time), and a similar number of people employed indirectly. This figure has stabilised over the last two years. It is noteworthy that exports of manufactured goods are continuing to rise despite a difficult environment. Even more heartening is the fact that exports by the services sector are going from strength to strength, with an 11% increase in the first nine months of 2012. In addition, the contribution of manufacturing to GDP has risen significantly over the last decade

To promote job opportunities in this sector, the Action Plan for Jobs 2012 included several specific initiatives to develop the sector. The Manufacturing Development Forum, which I established last year, has provided valuable insights into the sector. I also asked Fortas to develop a new Strategy for Manufacturing up to 2020 and this study is currently being finalised. A new report on the skills needs of the sector will also be a key driver in pursing those specific needs.

The services sector accounts for two thirds of total employment. While the majority of service firms are not supported by the State, 125,644 persons are employed in agency-supported firms, an increase of 4.6% on 2010. A total of 46,634 of these are employed by Irish companies, with growth particularly strong in areas including business services, ICT and financial services. By concentrating on where our competitive advantages lie, in both manufacturing and services and building on last year’s Action Plan for Jobs and the new Jobs plan to be announced in the near future, I am confident that growth in employment will be achieved.

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