Dáil Éireann díospóireacht -
Tuesday, 9 Jul 1991

Vol. 410 No. 6

Written Answers. - Industrial Development Policy.

Mervyn Taylor

Ceist:

27 Mr. Taylor asked the Minister for Industry and Commerce if he will outline the work currently in progress in his Department on the likely impact of the Single European Market on industrial development policy and its effect on employment on which Irish industries are most vulnerable; if he will give details of the advice which has been offered; and if he will make a statement on the matter.

Minister for Industry and Commerce (Mr. O'Malley)

The process of completing the Single European Market is likely to give a spur to the growth of the European economy from which industry in Ireland, as elsewhere in Europe, can benefit. The integration of the market will also increase competition for many producers as the remaining vestiges of national barriers to trade within Europe are removed. Nationally we stand to gain from this process as we have not resorted to barriers to imports and our exporters have improved their cost competitive positions in recent years.

Deputies will be aware of the many exhortations I have given over the past few years to Irish companies that they must gear up to take full advantage of the opportunities the internal market will bring. I have also constantly stressed that there cannot be any complacency on anyone's part that the Single Market will tolerate incompetent or inefficient firms. These firms will not survive. The message is that stark.

The Government have placed, and will continue to place, great emphasis on the need to develop our indigenous industry. It is essential that areas of perceived weakness such as marketing, technology and management development are addressed and brought up to the level where Irish firms can not only compete but secure additional markets for our products.

The development of greater scale in Irish industry has been identified as a critical need in the context of the greater competition arising from the Single European Market. This need will be addressed in a number of ways: State support will be concentrated selectively on those indigenous companies capable of achieving positions in international markets, enabling them to grow to the scale necessary to maintain these positions, particularly through marketing, product development and management development supports; supports will be offered in appropriate cases for the merger of companies or co-operatives where such restructuring would lead to growth in employment and added value in Ireland, and the industrial development agencies have adopted an operational target to increase by 100 within ten years the number of Irish manufacturing companies having an annual turnover greater than £5 million in real terms over the period.

The development of the necessary physical, technical and educational infrastructure to support industrial growth will be facilitated by the EC Structural Funds which have been put in place for this purpose.

The sectoral implications of the Single Market were highlighted by the various studies carried out under the aegis of the EUROPEN campaign, and these are kept under continuous review by my Department and the development agencies.

Finally, the implications of the Single European Market for industrial policy will, of course, be one of the major considerations of the review group recently announced by me.