Micheál Martin (Cork South Central, Fianna Fail)

I understand that the Deputy is referring to recent announcements of job losses in IDA client companies, Motorola and Bourns Electronic in Cork, which is part of the south-west region, and Thompson Scientific in Limerick, which is part of the mid-west region. Job losses are regrettable, no matter where they occur, but they are a feature of economic development in all countries as various sectors expand and contract in response to market forces.

The development agencies under the remit of my Department are working with a range of local bodies in the south west and mid-west regions to develop a competitive knowledge economy and to assist their client companies in moving up the value chain. IDA Ireland is actively promoting both of these regions through its network of overseas offices to prospective investors across the full range of IDA Ireland targeted sectors, such as pharmaceuticals, medical technologies, information and communications technologies and internationally traded services.

While we have been successful over the past decade in attracting investment and jobs we now face new challenges. We are no longer a low cost country with high levels of unemployment. In Cork and Limerick, as elsewhere, there is a need to mobilise initiatives and resources on a regional rather than a purely local basis so as to compete effectively with other city regions for mobile investment.

The development of the gateway and hub locations in the south and mid-west under the national spatial strategy will assist in providing the critical mass in terms of population, skills and infrastructure that are needed to attract, sustain and grow investments in these regions.

In recent years, Cork has been particularly successful in attracting investment in the pharmaceuticals, medical technologies and ICT sectors. Such investments are attracted to Cork due to the availability of a high quality workforce and a well developed infrastructure as well as a positive business environment. Limerick's employment base is dominated by the ICT sector, with companies such as Dell, Analog Devices and Banta. The medical technology and life science sector is also strong, making up approximately 26% of FDI employment in the county, as is the engineering and consumer products sectors with 16% of employment.

This transition from a low-cost economy has resulted in some companies moving operations to lower cost locations in eastern Europe and Asia, but, more importantly, it has resulted in some companies expanding their remit to include higher value activities in their Irish operations.

In terms of job creation, Enterprise Ireland activity is focused on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies, the retention and creation of new jobs in existing companies and in enhancing the innovation capability of Ireland at a national and regional level through support of research in companies and third level institutions. I am confident the policies and strategies the agencies are pursuing will deliver the best results in terms of maximising investment and jobs.

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