Bernard J. Durkan
Ceist:91 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to address the issue of the relocation of jobs to low wage economies; and if she will make a statement on the matter. [24734/03]
Written Answers. - Job Protection.
The Irish economy is undergoing fundamental change at present. Ireland can no longer be seen as a low cost location for investment. Ireland, as a location for what might be called basic, moderate to low technology production only, forms of mobile investment, is being overtaken by other less developed economies, notably in eastern Europe and the Far East, in terms of cost competitiveness.
A key component of the Government's strategy to tackle the competitiveness challenge from countries with lower labour costs is to increase the levels of investment in research, technological development and innovation in industry in Ireland. This will assist resident companies to move up the business value-chain, safeguard employment and, in the longer term, provide more sustainable and higher quality jobs. In recognition of the importance of this task, the budget for Enterprise Ireland, targeted at increasing research and innovation in Irish companies, has been significantly increased in recent years.
Furthermore Science Foundation Ireland has been set up to administer the €646 million technology foresight fund to support world class research that will be the genesis of future innovation and new technologies. This fund will help drive long-term growth and competitiveness by helping attract new high technology firms to Ireland while strengthening the capabilities of existing foreign and Irish owned enterprises.
Last May, a new financial support package for indigenous industry was launched by Enterprise Ireland, which is more suitable to clients' development needs. The Agency has also recently launched the €10 million competitiveness fund, which is designed to build competitiveness in small and medium enterprises. The development of export markets is also a critical factor in sustaining indigenous companies and Enterprise Ireland's range of supports is designed to help Irish companies broaden their reach into more competitive, demanding but more profitable overseas markets.
We are also implementing a careful progression in the sophistication and breadth of higher value activities that foreign owned companies carry out here. IDA Ireland has responded to the new value added imperative by attracting firms working with new technologies or involved in higher value activities. The higher priority my Department accords to quality inward investment projects is reflected in a number of new and superior strategic projects that have been secured. Furthermore, good success has been achieved by IDA Ireland in encouraging their clients to undertake more important strategic research and development in their Irish operations.
Fundamental changes are taking place in our economy and internationally, including increased competition from EU accession countries for mobile investment. Consequently, new foundations are needed for enterprise policy that will help create the conditions to support a sustained shift to a higher skilled, higher value added and a more knowledge intensive enterprise economy. In this connection, I have recently set up a new enterprise strategy group, under the chairmanship of Eoin O'Driscoll, to recommend and prioritise new strategies and policies to ensure that the enterprise prosperity we enjoyed in the last decade will continue into the future. I have asked Eoin O'Driscoll's group to examine the issues that I and my Government colleagues need to take into account to help strengthen our enterprise environment, to promote a very different innovation and knowledge driven economy and help sustain those industries already providing employment here, as well as addressing the competitive challenges presented by developing Asian and European economies.