Richard Bruton (Dublin North Central, Fine Gael)

The Deputy is right, there is always a careful analysis of each closure, and the IDA seeks to work with companies to prevent that where possible. In many of these cases, however, the cost competitiveness comparisons are significant. This applies even to the UK. Over recent years there have been adverse cost comparisons between some Irish locations and some UK locations. Over the last two years there has been a significant improvement in unit wage costs in Ireland compared to other countries, and we are seeing developments and advantages due to this. Companies that were struggling are doing better as a result.

There is a range of issues here, as I said in my reply to the question. It is never one issue. Some companies have located service centres here, which will survive if they become more sophisticated over time, add value and become more integral to their companies. If they are allowed to become slightly marginalised from the central operations of the company they are vulnerable, and small cost differences can then undermine them. That is one analysis. However, the reason I pointed to the programmes run by the IDA is that they are built on that analysis. It is the application of new technologies, the introduction and upgrading of skills, investment in research and development, examination of the business process, and deeper involvement in the business - for example, if a centre is providing customer support, it could move to other areas of involvement with the business - that copperfasten the survival of businesses.

See this speech in context