Micheál Martin (Cork South Central, Fianna Fail)

They were created towards the end of the year.

Despite the pressures experienced in some sectors, total unemployment in Ireland remains relatively low, at 4.3%, and economic growth is estimated at 4.8% for 2005. With more than 2 million people in work, Ireland enjoys one of the lowest unemployment-to-employment ratios in the EU 15.

In recent years, Irish manufacturing firms, particularly in more traditional sectors, have operated against a backdrop of significantly declining external demand, downward price pressure, and an increasingly competitive international environment, together with upward pressure on costs and the strengthening of the euro against our key trading partners' currencies. In contrast, the 12,212 new jobs created in Enterprise Ireland client companies during 2005 are heavily concentrated in high value-added, knowledge-based companies that offer greater security in the face of intense international competition. The headline figures do not reflect the considerable churn taking place in the Irish economy or the quality of jobs being achieved.

Irish manufacturing companies must increasingly compete though innovation, adopting best practice, maintaining a relentless focus on driving productivity gains and increased automation to maintain competitiveness. In addition, companies need to be outward-looking in their development strategies.

Enterprise Ireland's strategy for 2005 to 2007, which I launched last year, sets out the role the agency will play in transforming Irish companies into market-focused and innovation-driven companies with the ability to complete successfully in world markets. A significant initiative under the strategy is the productivity improvement fund, which supports manufacturing companies to adopt advanced technologies and focus on skill developments to improve productivity, thus laying the foundation for export readiness. Research and innovation are also critical to success in the increasingly global marketplace for all companies, regardless of sector.

Additional information not given on the floor of the House.

Enterprise Ireland encourages sustained levels of research and development activity through its RTI scheme and research and development initiatives. In addition, support for entrepreneurs to establish high-potential start-up companies, HPSUs, is vital to ensure a constant stream of companies providing valuable employment opportunities as such companies grow in scale. In 2005 alone, 75 HPSUs were established with Enterprise Ireland support in sectors as diverse as biotechnology, photonics, medical devices, functional foods, ICT and entertainment.

I am confident these measures will ensure a fully integrated approach to developing Ireland's indigenous enterprises.

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