Dáil Éireann Debate, Thursday - 23 March 2006
123 Mr. Durkan asked the Minister for Enterprise, Trade and Employment if he has examined the implications of the intention by some oil companies to cease business here; if this is likely to have implications for competition; and if he will make a statement on the matter. [11496/06]
Amharc ar fhreagraConsumers benefit from competition in the market and the Government is committed to fostering competition in all sectors of the economy. The national markets in which oil companies operate are no exception. Should any oil or fuel company decide to exit the market, I expect that there would be a high level of interest in the business being sold and many suitable prospective bidders. However, there is nothing the Government or anyone else can do to force incumbents to stay in a market. It is the right of any individual or corporation to sell its business and exit the market if it so wishes.
Form a competition perspective, any acquisition of an oil company currently operating in the Irish market is likely to be subject to regulatory clearance by the Competition Authority under the merger and acquisition provisions of the Competition Act 2002.
124 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the action he proposes to take to combat job relocation to low wage economies; and if he will make a statement on the matter. [11515/06]
Amharc ar fhreagra126 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the number of jobs relocated from here to low cost economies; and if he will make a statement on the matter. [11518/06]
Amharc ar fhreagra127 Mr. Durkan asked the Minister for Enterprise, Trade and Employment if he has identified the main contributory factors to job relocation to other economies; the action he proposes to take to address same; and if he will make a statement on the matter. [11519/06]
Amharc ar fhreagra129 Mr. Durkan asked the Minister for Enterprise, Trade and Employment his proposals to avert job relocation from this economy; and if he will make a statement on the matter. [11521/06]
Amharc ar fhreagra130 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the way in which he proposes to ensure that Ireland can regain its competitive edge; and if he will make a statement on the matter. [11522/06]
Amharc ar fhreagra132 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the number of jobs lost to lower cost economies in the past five years; and if he will make a statement on the matter. [11524/06]
Amharc ar fhreagraI propose to take Questions Nos. 124, 126, 127, 129, 130 and 132 together.
The National Competitiveness Council through its work on competitiveness benchmarking highlights where the economy is strong in competitiveness terms but also warns us of emerging or potential challenges. I give very careful consideration to the council's annual analyses when they are published. These reports provide a valuable input to the essential formation of policies necessary to encourage and support enterprise development.
Since the beginning of 2006, Amgen, the largest biotechnology company in the world, announced it has chosen Ireland in which to invest $1 billion and create 1,100 jobs by 2010. Vesta Corporation, a leader in virtual commerce solutions, will establish a European operations centre in Dundalk. Georgia Tech Research Institute will set up an applied industry research institute in Athlone and Actel will set up a European processor centre in Dublin. These are just a sample of high technology investments that have been attracted to Ireland because of our developing competitive strengths in technology, science infrastructure and knowledge confident and skilled employees.
Decisions by global businesses to make investments of this importance and scale are not made in favour of uncompetitive and lowly rated locations. In global terms we have not lost but are sharpening our competitive edge in terms of technological and innovation advantage — the very attributes that will sustain enterprise as the impact of globalisation becomes more influential and the severity of competition more intense. We are making impressive progress in winning significant employment from the outsourcing and relocation decisions of foreign investors. These investments, as well as the 65 high potential start-ups that were supported by Enterprise Ireland last year, are just some of the capital Ireland is generating to seed future growth.
As further evidence of our commitment to assisting and developing Ireland's knowledge economy, overall Government investment in research and development increased fivefold, from €500 million between 1994 and 1999, to €2.5 billion between 2000 and 2006. My Department is using some of these funds to aggressively support Science Foundation Ireland in its programme to build centres for science, engineering and technology. These connect world class researchers with industry through grants worth as much as €20 million over five years. These are targeted investments in areas with the most likely scientific and economic impact. I believe our aim to invest in performance and excellence is already paying off by repositioning Ireland at the sharp end of what global companies are looking for when making decisions about complex, high value investments.
To help indigenous firms tackle technological vulnerability that can lead to job losses, the enterprise development agencies under my Department's aegis have developed a range of programmes to encourage more firms to innovate and undertake research and development that will transform their ability to compete. This is critical for Irish small and medium sized enterprises, SMEs, because virtually all companies regardless of size now have to compete in some form of global marketplace. For example, Enterprise Ireland's productivity improvement fund helps companies access new capital equipment, acquire strategic new technologies or fund training and management development initiatives. Our aim is to drive productivity performance across indigenous companies so they not only survive the globalisation process but have the ability to profit from opportunities which globalisation offers.
Our future is inextricably linked to succeeding as a knowledge economy. Knowledge companies develop by collaboration and by building networks and clusters for mutual benefit. In response to the recommendations of the enterprise strategy group, I have authorised Enterprise Ireland to explore how these could be best utilised in an Irish context by promoting pilot industry-led networks with the aim of meeting either national economic or joint company development objectives. This is an exciting project for enterprise to work with my Department's agencies to imagine the future and help shape it.
These policies are designed to improve national competitiveness, sustain employment in Ireland and limit the attractiveness of lower cost economies for job relocation. It is not possible to identify the number of jobs that have relocated from Ireland over the past five years to low cost economies nor is it feasible to identify the myriad business reasons companies might have for making this decision. Furthermore, the life cycle of companies influences the ebb and flow of employment and investment and relocation is just one factor in the many enterprise related issues that determines employment levels. Nevertheless, the Government and I are determined that Ireland will be a competitive economy for the clever, research driven innovations that will be demanded by tomorrow's industrial and personal consumer markets.
125 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the action he has taken to reduce the costs to industry; and if he will make a statement on the matter. [11517/06]
Amharc ar fhreagraSustaining Ireland's competitiveness continues to be a key priority for the Government. It is monitored in particular through the work and advice of the National Competitiveness Council. The Government's response is manifested in numerous ways, most recently as evidenced by the introduction of a non-inflationary budget for the third consecutive year. This displays the Government's prudent fiscal management of the economy at a time of ever increasing global competitiveness pressures.
Competition is the best way to ensure we have a competitive cost base. In my Department, I have assigned more resources and given more powers to the Competition Authority. I have abolished the groceries order and strengthened competition legislation to deliver more competition and help create a more cost-effective base for doing business from Ireland.
Developed economies usually have higher costs than less developed regions and Ireland is no exception. While our cost base may be relatively higher than other economies, our competitiveness in skills, education, knowledge infrastructure and an ambitious workforce sets us apart from our competitors. This makes our economy an attractive location for investment and from which to do business globally. The consistent flows of high quality, sophisticated and research orientated investments that locate here is tangible evidence we are at the sharp edge of competitiveness in the products and services that will be needed by tomorrow's industrial and consumer markets.
Nevertheless, with global competition becoming more pressing and influential, enterprise needs to place a greater emphasis on productivity improvement. To help indigenous firms in this area Enterprise Ireland is running a productivity improvement fund that will help firms access new technology or initiate training and management development projects.
Finally, I have no doubt that the competitiveness and business costs imperative will be a critical overarching issue that must be taken into account by the various stakeholders in the social partnership discussions.
128 Mr. Durkan asked the Minister for Enterprise, Trade and Employment if he is satisfied that Irish exports are in a position to compete on world markets; and if he will make a statement on the matter. [11520/06]
Amharc ar fhreagra133 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the way in which he intends to create the climate for an increase in Irish exports; and if he will make a statement on the matter. [11525/06]
Amharc ar fhreagraI propose to take Questions Nos. 128 and 133 together.
I would refer the Deputy to the reply I made to similar questions put by him on 7 February 2006. As a small open market economy, exporting over 90% of its GDP, Ireland is hugely dependent on the ability of its exporters to succeed in world markets and has, as a result, fully embraced the global economy. Figures released this week by the Central Statistics Office show that Irish exports for 2005 increased by 5% on 2004 export figures. This compares with a 2% increase for Irish exports between 2003 and 2004. I am heartened by the continuous improvement in our export position against a background of continuing low growth rates in the European and US economies over the past year.
The Government is strongly supportive of Irish exporting firms seeking to increase their level of exports on world markets and in that regard my Department, through its agency, Enterprise Ireland, is active both domestically at the developmental level and through promotional activities carried out from a range of locations abroad, in assisting Irish indigenous companies to find new markets for their products and to increase their existing level of market share.
In this, Enterprise Ireland is ably assisted by Irish embassies abroad whose staff work closely with the agency in facilitating the development of export markets for Irish exporting companies. Close co-ordination is also maintained with other export promotion organisations, such as Bord Bia, Bord Iascaigh Mhara and non-governmental bodies such as the Irish Exporters' Association and the Chambers of Commerce of Ireland. In addition, both I and my colleague, the Minister for Enterprise Trade and Employment, Deputy Martin, have been active in leading trade missions, in conjunction with Enterprise Ireland, to the new member states and Asia, with a view to increasing the share of exports by Irish companies to these countries.
While the focus of our efforts has in recent years been towards developing and expanding markets in northern Europe and the USA and, consequently, reducing our dependence on the UK export market, we have also begun to explore the potential for increasing our exports to Asia and the Far East. In that context the Taoiseach last year launched the second phase of the Asia Strategy 2005-2009, following his successful visit to China. The Asia strategy contains a number of export oriented targets and objectives, which is overseen by a committee representative of public and private sector interests, with a view to exploiting fully the potential for Irish companies to develop new markets in Asia over the coming years.
My Department and its agencies will continue to work with other organisations engaged in export promotion, with a view to increasing the overall level of Irish exports in existing markets and creating new markets for Irish exporting firms.
