Dáil Éireann Debate, Tuesday - 10 November 2020
183. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which Covid-19 supports have sufficiently addressed job losses in the manufacturing sector; his plans for further investment in this area in the future; and if he will make a statement on the matter. [35401/20]
View answerEssential manufacturing, including pharmaceuticals and medical devices has remained open throughout the pandemic under the public health guidelines. However initial restrictions in March 2020 saw 37% of manufacturing employment move to employment supports. This reduced gradually following the opening of residual elements of manufacturing in Phase I of the Roadmap for Reopening the Economy and Society to 17% at the end of August.
The numbers in the manufacturing sector in receipt of Pandemic Unemployment Payment (PUP) remained relatively steady between May and October and at around 5-6% of total PUP claimants. While recipients increased by approx. 3,000 as of November 3rd due to Level 5 Restrictions introduced on 21 October, the increase was lower than average. EWSS data indicates an ongoing impact on the manufacturing sector with the sector accounting for 8% of employments supported under scheme.
The manufacturing sector faces ongoing challenges of capacity constraints, reduced demand and supply chain disruption. Given its export intensity, the manufacturing sector is very reliant on international trade flows and functioning global supply chains and on recovery in EU and global markets. Wider external economic and policy developments will also will also affect prospects for the sector and there is a longer-term risk of countries seeking to repatriate their supply chains to avoid the risk of future pandemic related disruption.
Manufacturing has a significant vulnerability in terms of international competition and, for multinationals, intra-corporate competition. Connectivity is crucial and the sector is emphasising the need for a system allowing international travel at the earliest opportunity. Supporting digital transformation of the manufacturing sector and its supply chain under Ireland’s Industry 4.0 Strategy will underpin the competitiveness of the manufacturing base into the future to support recovery and drive productivity.
Looking further ahead, the National Economic Plan currently being developed will set out the Government’s guiding priorities and policy objectives for a sustainable recovery, restoring employment and supporting the longer-term capacity and reorientation of our economy with an integrated and multi-sectoral coordinated approach taking account of the pandemic, Brexit and broader trends.
