Dáil Éireann díospóireacht -
Tuesday, 18 Jun 2002

Vol. 553 No. 2

Written Answers. - Job Creation.

Bernard J. Durkan

Ceist:

97 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that Ireland is well placed to compete internationally for investment in job creation in both manufacturing and services; her plans in this regard for the future, keeping in mind international trends and developments and the competitiveness of the economy; and if she will make a statement on the matter. [13740/02]

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

The issue of job creation through the attraction of foreign direct investment is statutorily charged to IDA Ireland, for which it is a day-to-day operational issue.

I can assure the Deputy that the Government is committed to ensuring the most equitable regional distribution of job opportunities. I have impressed on IDA Ireland the crucial importance of making even greater efforts to provide employment throughout the country. The day-to-day work of promoting Ireland as an investment location continues apace.

The focus of IDA Ireland over the coming months and years will be on high quality new investment that is in keeping with the competitive characteristics of the Irish economy. In addition, IDA will continue to work closely with existing clients to upgrade the value of their products and services into higher order functions such as research and development. Many recent job losses are part of an ongoing process of adjustment, 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. In 2000 IDA Ireland negotiated nearly 40% of all new jobs in salary ranges above €31,700. The agency is working to ensure that overseas companies in Ireland are engaged in the kind of high value activity which is sustainable in the long-term.

First, the IDA's policy in this regard is to focus a major part of its efforts on embedding the existing overseas owned companies here. Through development programmes which IDA operate, it is aimed to have capable companies moving systematically up the value chain, from being subsidiary operations to becoming strategically independent operations within their corporate structures worldwide. The essential ingredient in this programme is to ensure that these companies continuously adapt to the changing nature of the economy and have an operation in Ireland that fits with the competitive characteristics of the Irish economy. Second, the IDA continues to work in attracting the kind of high value new projects which are sustainable in this economy and to focus on those business sectors which offer the best opportunities for success in the future.

With regard to these objectives, IDA Ireland has taken a number of key steps over the past year, including the setting up of two new divisions within the agency, the education, skills and research unit and the strategic business group, the regionalisation of a number of key divisions to regional offices in Athlone, Sligo and Waterford, and the introduction of a new research and development capability scheme.

The provision of quality office and industrial premises on high quality business parks in key centres is being undertaken by IDA Ireland working in partnership with local authorities and the private sector. This is recognised as being essential to attracting new greenfield investment to the regions.

In addition, the National Development Plan 2000-2006 outlines the improvements to the physical and educational infrastructure that need to be fully implemented to ensure improved access to the regions and increased availability of third level graduates which are a prerequisite for modern industry. These issues are being addressed both at local and Government levels to ensure complete implementation.

I am confident that the measures outlined above, which are currently being adopted by IDA Ireland, as well as the continuing commitment of the Government to regional development will bring positive results to the country. I will continue, along with the industrial development agencies, to promote Ireland with international firms for suitable industrial development projects.