Bernard Durkan (Kildare North, Fine Gael)
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Question 1128: To ask the Minister for Enterprise, Trade and Employment if, in the course of the recent promotional trip to south east Asia, information was gathered with a view to addressing the issues causing the relocation of Irish jobs to such locations; and if he will make a statement on the matter. [3035/07]

Micheál Martin (Cork South Central, Fianna Fail)
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I presume the Deputy is referring to my participation on the recent trade Mission led by An Taoiseach, to the Gulf region — Saudi Arabia and the United Arab Emirates — earlier this month. The Gulf region is not, in fact, an area to which Irish jobs relocate, this issue mainly arises in relation to some far eastern countries, principally China.

The Government's industrial policy concentrates on building up higher technology industry and the knowledge economy. Ireland's comparative advantage has therefore evolved to activities based on the generation and exploitation of knowledge based companies. In circumstances where there is a more attractive low cost environment abroad, it will inevitably attract some companies that are unable to produce in the high-wage environment of modern industrial economies. Where actual relocation has occurred to date, it should be noted that this has been largely limited to relatively low-technology, labour-intensive activities — those least suited to the economy that Ireland has become.

The continuing structural transformation of our economy is inevitable and indeed essential. The significant growth in trade in recent years has fundamentally contributed to our economic success and we are now one of the most open economies in the world. We are therefore a very strong supporter of the World Trade Organisation process to open up markets and we obviously support the strengthening of the multilateral trading systems and a further reduction in barriers to trade in goods and service. This policy has brought huge benefits to the Irish economy and while there are some inevitable difficulties in relation to sectors and jobs moving to lower wage economies in Asia, the overall process has, on balance, been hugely beneficial to Ireland. There is an inexorable and unstoppable trend toward more and more globalization of production and Ireland has to seize the opportunities this presents, despite the inevitable difficulties it generates in some areas.

To help address some aspects of this issue, Enterprise Ireland client companies are offered a range of supports of strategic importance as alternatives to outsourcing, including, automation, upskilling and product and process development. These initiatives assist companies to increase their exports, sales and employment, and develop a more competitive and self-sufficient industrial structure.