I should like to thank Deputy Sheehan for his good wishes. This Government's primary goal is to bring about increased employment, greater wealth and higher living standards for all our citizens. To do this we must have a strong internationally competitive industrial sector, allied to a positive business environment.
Our economy has come through a difficult period over the past 12 months. The external environment continued to be hostile mainly due to the Gulf War and the recessions in the UK and US economies. In spite of these difficulties, real output of about 2 per cent was achieved in 1991. While this level of growth will not generate significant employment nor resolve the other economic difficulties facing Ireland, it compares quite favourably with growth in most other European countries and especially in the United Kingdom. Our strong export performance which, at £15 billion represents an increase in value of 4 per cent over 1990, demonstrates the continuing competitiveness of Irish industry which has managed to increase its market share despite the difficult trading conditions.
I am also glad to be able to say that, in the face of this demanding economic environment, the State industrial promotion agencies turned in a creditable performance by creating over 18,000 jobs last year, which substantially met the job creation target for manufacturing and internationally traded services industry which had been set under the Programme for Economic and Social Progress.
The south-west region of the country continued its growth in manufacturing employment during 1991 with 1,868 first-time jobs being created in new and expanding IDA-backed companies, while a further 577 jobs were recovered in companies which in previous years had cut back their employment. These new jobs more than offset total job losses, giving a modest increase of 150 in total manufacturing employment in the region. The region benefited from a strong number of projects grant-approved during 1990. Many of these companies started recruiting in 1991, including QC Data and Motorola in Cork city and Mitsumi in Mallow. The year 1991 also saw a continued emphasis by the IDA south-west office on improving linkage between Irish-owned companies and the established original equipment manufacturers — companies like Walsh Western, Hoermann Electronics, Chip Electronics and BG Turnkey. This continued to give valuable local employment by exploiting the many linkage opportunities with the larger companies in the region.
The IDA are confident that 1992 will see a continued modest growth in manufacturing employment in the region. They have assured me that they will be making a concentrated effort, in co-operation with local communities, to help create employment opportunities in the more rural locations throughout the region. The IDA have been to the forefront in decentralising functions and devolving powers to regional level in the regionalisation of their small industry programme. In fact, the regionalisation process commenced in 1983 with the setting up on a pilot basis of a regional small industry board in Cork. Encouraged by the Cork regional board experience and as required by the 1984 White Paper on Industrial Policy, the IDA small industry programme was formally regionalised in 1985. All the operational elements of the programme for promotion, through project negotiation and evaluation to grant payment and after-care was then decentralised to regional level. This ensures that the IDA, together with other local bodies and community groups, can maximise the talents and strengths of individual regions.
It is generally recognised that we have not enjoyed the same success with the development of Irish-owned firms as we have with foreign companies. Most recently, the Industrial Policy Review Group, chaired by Mr. Jim Culliton, concluded that future employment growth and living standards will be severely constrained unless we succeed in developing a strong indigenous sector of industry. There is little doubt that our industries will face the most serious challenge they have ever known as the Single Market takes effect. Therefore, one of the principal concerns in the years ahead must be to tackle the urgent need for Irish companies to grow and achieve the scale necessary to be successful in the new Europe. If we are to generate jobs and wealth in Ireland we must build indigenous companies of sufficient quality, scale and strength to win and sustain profitable positions in international markets. With a view to achieving this goal, the IDA will be concentrating their efforts both in the Cork region and throughout the country on supporting Irish companies, both big and small, who demonstrate a willingness and capability to inter-nationalise their businesses.
The Dáil adjourned at 9.30 p.m. until 10.30 a.m. on Wednesday, 26 February 1992.