Enda Kenny (Mayo, Fine Gael)

I am sure everyone in the House is concerned about the announcement yesterday of the loss of 350 jobs in the NEC plant in Ballivor, County Meath. Every politician is concerned about the impact this will have on the families and workers involved as the plant has been in operation for more than 30 years. It follows the announcement in the past month or so of job losses in Saehan Media, Magee, Platter Foods in Sligo and others.

While no one decries the strength of the Irish economy, credit for which goes to the workers, and everyone can share in that credit, there are fragilities and strains in the economy that the Government should be taking seriously. For instance, the CSO's quarterly national household survey indicated that the number of Irish people working in Irish industry fell by almost 13,000 in 2005, which is approximately 1,000 job losses a month. While the survey showed an increase in employment, it also showed that the manufacturing sector is losing jobs at an alarming rate. It is further evidence of the increasing costs Irish businesses must face to be able to compete. As the Taoiseach has pointed out, a small open economy must be able to compete, to which cost base is crucial. Traditional businesses are now suffering because the Government has failed to tackle the high cost of doing business here. This is having a detrimental effect on our previous attractiveness as a location for foreign direct investment. This is being compounded by intense competition from overseas.

The inflation rate for basic utilities and energy is running at almost twice the rate of that in the euro zone. Broadband penetration is seriously lacking. The competitiveness council report indicates that we are rated 14 out of 15 in this regard. Energy infrastructure shows us running at 14 out of 16 and port infrastructure shows us running at 13 out of 16. Is the Taoiseach concerned that the continuing decline in the manufacturing sector threatens seriously the prosperity of the country? Given the fragility in the economy, to which Deputy Bruton has referred on many occasions, does the Taoiseach agree that between a strong consumer spend and a thriving construction sector there are fragilities which are caused mainly by our cost base and our serious decline in competitiveness, and any fall-off in either the consumer spend or the construction industry would have a damaging effect on the economy? What action does the Government propose to take in the area of our cost base and in advancing our case for competitiveness where we have slipped on a world scale from fourth to 26th? Is this a cause for serious concern to the Government and what is its reaction to the continuing trend of 1,000 job losses a month in the manufacturing sector?

See this speech in context