Dáil Éireann Debate, Tuesday - 31 May 2005
116 Mr. Naughten asked the Minister for Enterprise, Trade and Employment the action he is taking to develop the indigenous manufacturing sector of the economy; and if he will make a statement on the matter. [17798/05]
Amharc ar fhreagraThe principal means of delivering direct assistance to indigenous manufacturing companies is through the national enterprise development agency, Enterprise Ireland. Enterprise Ireland can assist those indigenous manufacturing companies that are, or at least have the potential to be, export focused. The decision to provide support to a client company is a day-to-day administrative matter for the agency concerned, and not one in which I have a direct function.
In May 2005, I launched Enterprise Ireland's strategy 2005-07 entitled, Transforming Irish Industry. This strategy is focused on implementing the recommendations of the enterprise strategy group, ESG, action plan to accelerate the development and internationalisation of Irish owned business in the manufacturing sector and internationally traded services sector, which I published following Government consideration of the recommendations of the enterprise strategy group.
Enterprise Ireland is acutely aware of the significant challenges and opportunities that have emerged as a result of globalisation and increased global competition. Ireland is at a turning point in its economic development. The reality is that the low cost model is no longer an option for Ireland. Irish companies must increasingly compete though innovation, adopting best practice, a relentless focus on driving productivity gains and increased automation. In addition, to be successful, companies need to be outward looking in their development strategies and should consider Enterprise Ireland as their development partner in harnessing opportunities that global markets offer.
Enterprise Ireland offers a set of sophisticated solutions tailored to the needs of its individual client companies throughout all regions. Each company is assigned a development adviser who works with the company across all business functions through the business development model, BDM, process. The BDM ensures that support is applied to critical business functions, namely, strategy, finance, research and development, marketing, human resources and production. Financial and non-financial support is provided to companies with a business strategy that encompasses all elements required for business success. Enterprise Ireland also provides expertise to companies in the indigenous manufacturing sector who wish to expand through increased export activity. Through its network of 33 international offices, Enterprise Ireland assists companies to create and implement successful strategies for market entry, development and growth.
Research and innovation, both product and process development, are critical to success in the increasingly global marketplace. Enterprise Ireland encourages sustained levels of research and development activity through its RTI scheme and research and development initiatives. Research and development awareness campaigns are also run to demonstrate the benefits of such investment. Enterprise Ireland also fosters research collaboration between companies and colleges through instruments such as the innovation partnership initiative.
To assist the drive towards competitiveness and productivity within manufacturing, Enterprise Ireland promotes the adoption of new technology and best practice at company level. Enterprise Ireland's specialist technologist team delivers mentoring and developmental supports to individual manufacturing companies.
In May 2005, I also launched a new productivity improvement fund. The productivity improvement fund managed by Enterprise Ireland will make available €20 million over the next three years to support eligible SME client projects on a competitive tendering basis. It will enable companies adopt advanced technology and focus on skill developments to improve their competitive position by increasing the companies' gross output, value added and exports while providing new employment or securing existing employment. More than 300 Irish companies are expected to avail of support under this initiative in order to improve their productivity and remain competitive in the face of global pressures.
