Micheál Martin (Cork South Central, Fianna Fail)

The high level group on manufacturing has been established. The terms of reference for the group, as set out in section 7 of part 1 of Towards 2016, are to review the challenges facing the manufacturing sector and having regard to initiatives currently under way, identify any further measures that would help to meet those challenges. The group, membership of which is in accordance with the standard tripartite model for social partnership, comprises four representatives for each of the three main partners, namely, IBEC, ICTU and the Government. The group is chaired by a senior industry representative who was appointed by me. A full list of the members of the group will be furnished to the Deputy by my office.

The first meeting of the group took place on 9 February and the next meeting is scheduled for 16 March. While my Department is providing the secretariat for the group, it has been established under the auspices of the partnership process and is mandated to report on its deliberations to that forum. In this context, it is a matter for the group to determine its schedule of meetings and timescale for reporting.

Overall, manufacturing continues to be an important and integral part of the economy. It provides inputs to other sectors of the economy and satisfies a broad range of final and intermediate demands. In particular, high value manufacturing is a key driver of innovation and technological advance. It increases opportunities for attracting and embedding research and development activities, collaboration with the higher education sector and stimulating networks.

Many components of the more traditional manufacturing sectors such as engineering have also seen employment growth in recent years, indicating that the manufacturing sector throughout Ireland remains healthy. While employment in some traditional sectors has declined, these jobs have been replaced with employment in higher value activities. For example, the medical devices and pharmaceuticals sectors are thriving with high growth in employment and high levels of productivity.

In the five years from 2000 to the end of 2005, slightly more than 31,000 jobs have been lost in manufacturing. To put the decline in manufacturing employment in context, more than half a million new jobs have been created in Ireland since 1997. The losses in manufacturing have been more than offset by job creation in services. It should also be noted that the latest Central Statistics Office release on industrial employment of 28 December 2006 indicated an increase of 4,000 in the numbers employed in manufacturing in the quarter ending September 2006 relative to the same period in 2005.

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