John Browne (Wexford, Fianna Fail)

When the Minister for Enterprise, Trade and Employment, Deputy Martin, returns from abroad, he will meet Deputies Broughan and Martin Brady to discuss this issue. Both the Minister and Enterprise Ireland were aware for some time that the company was carrying out a strategic review of its operation in Coolock. It was only completed recently. During the course of the review, the company chairman, CEO of Enterprise Ireland and senior management from both organisations have been in discussions.

The Coolock facility is one of 11 similar facilities Cadbury has in Europe, the Middle East and Africa. Concern was expressed at the high level of operating costs at the Coolock plant and it was decided its current business model was unsustainable. Cadbury was faced with either the full closure of the operation in Coolock or to streamline and increase efficiencies. The latter option will require a reduction of 400 to 450 jobs on a voluntary basis over the next three years. Management and the unions will discuss the best way to achieve this. I am heartened by the commitment given by the company to the long-term future of the Coolock plant.

The Government is conscious of the effects the job losses will have on the workers involved, their families and their community. It is distressing news for those who will lose their jobs. The relevant State agencies will provide every support they can. The priority will be to find alternative employment for those involved at the earliest opportunity. The role of FÁS will be of particular importance in providing support and assistance to the workers concerned. The Minister for Enterprise, Trade and Employment, who is abroad on official business, has been following the case. Enterprise Ireland has been working closely with the company for some time.

There is a significant churn in employment. Traditional low-cost industries are under pressure and are closing, while other industries, especially the service industry, are providing much employment. In the past six years, more than 440,000 jobs were created in services and 150,000 jobs in high-end manufacturing, a significant turnaround in the nature of employment. Long-term, sustainable economic growth and expansion in employment depends on a competitive and adaptable economy. The effects of globalisation are felt in even the smallest markets and global competition will intensify and extend its reach. The Government has recognised the inevitable changes taking place across world markets for both trade and investment. Enterprise policies that equip companies with the ability to better compete in world markets, capture the opportunities from globalisation and build competitive advantage in innovation and knowledge have been central to policy development.

The impact of globalisation on Ireland has to be put in perspective. In the past eight years more than 523,000 people have been added to our workforce, an unprecedented growth of 35%, with more than 2 million people in employment. Job relocations, which inevitably arise in the globalised marketplace, are far exceeded by new job creation, usually accompanied by better paid high skilled employment. Furthermore, unemployment continues to fall.

The best response to globalisation is to ensure Ireland remains attractive for investment and enterprise growth. As the economy has matured, foreign direct investment incentives have been tailored to match our strengths. Low wage costs are no longer an enticement but have been replaced by other attractions. These include a benign tax and regulatory environment, a better educated workforce, an improving infrastructure and a commitment to world-class standards of research, development and innovation. Maintaining and improving upon these standards is vital to sustaining Ireland's competitiveness.

The IMD world competitiveness scoreboard ranked Ireland as the world's 11th most competitive economy in 2006, up one place on last year's position. The agencies under the Department of Enterprise, Trade and Employment are working to maintain Ireland's attractiveness to foreign investment while assisting indigenous industry. In 2005, the IDA supported more than 50 research and development projects related to business investment to the value of more than €275 million, a record both in number and value for the agency. Enterprise Ireland has introduced a productivity improvement fund for indigenous enterprises to improve levels of productivity through technology acquisition or labour force training. In 2005, Enterprise Ireland helped 515 client companies invest more than €100,000 each in meaningful research and development, with 33 companies investing more than €2 million. With this and other assistance, Enterprise Ireland is making significant progress in helping Irish enterprises to improve their export performance, with growth of 7% in 2005 and 15% in exports to Asia.

Dublin has been a success story in terms of foreign direct investment, FDI, with a critical mass of population, skills pool, educational infrastructure, international access connections, existing business activity across all sectors and extensive property solutions for future activity. New company arrivals in 2005 included Google, eBay, Kellogg and QLogic and, in 2006, SanDisk, Actel and Sage.

The Government strategy for Dublin is to progress the development of a knowledge economy so that the region can compete both nationally and internationally for foreign direct investment; work with the existing client base in Dublin to encourage it to expand and diversify into higher value added goods and services; act as a broker with the higher education authorities, key client companies and Science Foundation Ireland to encourage further research and development; provide modern property solutions with supporting infrastructure; and work with local authorities and other relevant agencies to influence the delivery of the necessary infrastructure in the county.

In 2005, there were 474 IDA companies in Dublin employing 48,178 people. The capital has traditionally been a centre for manufacturing industry for FDI. In recent years, however, there has been a shift away from manufacturing, due to cost competitiveness, to more knowledge-based higher value-added projects in fund management, e-commerce, software and high-end back office services. I assure the Deputies that the industrial development agencies will continue to promote north Dublin in order to create sustainable investment and job opportunities in the future.

I again apologise for the absence of the Minister. His officials have assured me he will meet both Deputies to discuss the matter further as soon as he returns.

See this speech in context