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Industrial Development.

Dáil Éireann Debate, Thursday - 7 October 2004

Thursday, 7 October 2004

Ceisteanna (64)

Seán Ryan

Ceist:

59 Mr. S. Ryan asked the Minister for Enterprise, Trade and Employment the figures for the level of industrial employment at the latest date for which figures are available; the way in which these compare with those of the equivalent date in each of the previous five years; the steps being taken to counter the decline in industrial employment; and if he will make a statement on the matter. [23677/04]

Amharc ar fhreagra

Freagraí scríofa

Industrial employment has not experienced the same, almost consistent expansion that we have seen in other sectors of the economy over the past five years. The reduction in industrial employment after 2001 had much to do with the well-acknowledged global trading difficulties at that time. More recently, more intensive international competition that is a very real issue for many businesses has affected manufacturers based here. Nevertheless the most recent quarterly industrial employment figures for June shows an upturn in industrial employment on the previous quarter. Furthermore, the ESRI expects industrial employment to increase by 0.6% this year and by 1% in 2005.

Manufacturing is an intrinsic component of the economy and is likely to remain so despite services output and employment becoming more important. While industrial employment has declined in the past few years, we must view these losses against employment expansion in the broader economy. The latest quarterly national household survey, quarter two, 2004, shows that the total at work rose by 42,800 to more than 1.836 million in the year, while total employment has increased in each of the past five years. Some 247,100 more people or an extra 16.5% were at work in the March to May quarter this year, than in the corresponding period in 1999. The outlook for the Irish economy is good with the ESRI, in its quarterly economic commentary autumn 2004, expecting economic growth to increase this year to around 5.2%.

Enterprise policy is being actively refocused towards creating the conditions that will make possible a sustained shift to higher skill, knowledge-intensive activities and in which advanced manufacturing expertise will be an important contributor to growth and employment. These are essential if our enterprises are to capture sustainable competitive advantage in niche markets that are less susceptible to cost based competition. The range of incentives provided through the enterprise development agencies are designed to meet these objectives and to help enterprise operate at higher levels of skill and undertake higher order strategic investments, product development and innovation. The agencies want to be active and supportive partners with enterprise in helping new market oriented investment projects.

The enterprise strategy group recognised the importance of developing the specialised manufacturing skills we have developed. The ESG made a number of key recommendations that are being considered by a high level group, set up by my predecessor, to look at the most appropriate way to implement them. I will shortly be making a report to Government on their work and recommendations. I refer the Deputy to the following table.

Table 1: Total and Industrial Employment in Ireland,1999-2003

Industrial Employment (June of each year) Source: CSO — Industrial Employment

Total Employment (Mar-May of each year) Source: CSO Quarterly National Household Survey

1999

255,900

1,589,100

2000

268,800

1,671,400

2001

269,000

1,721,900

2002

256,500

1,763,900

2003

250,000

1,793,400

2004 *

243,700

1,836,200

*Preliminary estimate
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