Dáil Éireann díospóireacht -
Thursday, 3 May 2001

Vol. 535 No. 3

Written Answers - Company Relocation.

Bernard J. Durkan

Ceist:

84 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the degree to which she has taken action to counter the tendencies by some firms to relocate to low wage economies; and if she will make a statement on the matter. [12687/01]

Bernard J. Durkan

Ceist:

85 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the action she plans for the future to safeguard against the tendency for some firms to relocate to lower wage economies; and if she will make a statement on the matter. [12688/01]

Bernard J. Durkan

Ceist:

93 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has undertaken any studies in relation to firms which have recently relocated to other economies with the particular objective of identifying the single biggest contributory factor in such cases; if a trend can be identified; and if she will make a statement on the matter. [12696/01]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I propose to take Questions Nos. 84, 85 and 93 together.

While I am concerned at any factors that might adversely affect industrial employment, there is no evidence available to my Department or the industrial development agencies of any increased tendency for firms to relocate to low wage economies.

The experience of the agencies is that the reasons for relocation are many, varied and complex. Ireland has on balance benefited from such movement in recent times due to the strength of our economy, and the trend in employment arising from inward investment continues to be extremely favourable. A record 23,300 new jobs were created in IDA Ireland supported companies during 2000. Allowing for job losses of 8,100, total employment in IDA companies increased by 15,200 to almost 140,000 and this represents an increase of 12.2%.

Those job losses which are occurring are mainly as a result of the restructuring process which is going on in industry in Ireland whereby activities, and hence jobs, at the lower end of the value added scale are being phased out as these activities become uneconomic in an Irish context. The agencies, in working with their client companies, make every effort to assist them in addressing any constraints which impact on their investing within the Irish economy. In the event of a client considering relocation of all or part of its Irish operation, the agency concerned would pursue the recovery of grants and grant aided assets as appropriate.

The IDA's policy is to focus a major part of its efforts on an embedding programme for the existing overseas owned companies in this country. It also seeks to ensure that, as jobs are lost at the lower end of the scale, they are more than compensated for by a greater number of jobs at the higher end. This process has achieved considerable success over the past decade and would not have occurred without the IDA's continual active promotion of Ireland as an investment location against competition from other destinations for foreign investment.