Vol. 504 No. 5
92 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the indications, if any, she has received that relocation to low wage economies is affecting industrial investment here; and if she will make a statement on the matter. [12445/99]
I refer the Deputy to a similar question raised by him on 23 March last. In my reply to the Deputy, I outlined that the main element of Ireland's industrial policy has been to seek to move our economy further up the value chain by promoting the quality of our education, skills and overall competitiveness.
The quality of our educated and skilled workforce is our key advantage in any competition with low labour cost locations for overseas mobile investment. Many companies in Ireland, both Irish and overseas owned, are highly competitive in the international marketplace. Wages, whilst important, constitute only one element of a company's overall costs.
Obviously companies do, from time to time, make a decision to relocate their facilities. This is generally for a combination of reasons including lack of competitiveness in certain labour intensive operations, consolidations, the availability elsewhere of spare capacity or as a result of mergers and acquisitions.
The long standing objective of our industrial policy has been to increase overseas companies' commitment to Ireland and our economy. I am pleased to say that we have been increasingly successful in this approach and I see this as the way ahead. The impact on the economy of IDA Ireland supported companies has increased by nearly 20 per cent in value terms in the past four years. This economic impact is a major contributory factor to the high levels of growth in other sectors of the economy. The maintenance of Ireland's low tax regime beyond the year 2010, as recently agreed with the EU Commission will facilitate Ireland's current competitive stance in Europe.
