Micheál Martin (Cork South Central, Fianna Fail)

While all company closures and their associated job losses are to be regretted and their impact on a personal, community and national level should never be underestimated, these losses have occurred during a period of unprecedented job creation. Well over half a million jobs have been created in the past six years. In the 12 months to February 2007 the number of people in employment increased by 16,000.

Overall, Ireland has performed very strongly over the last few years. However, as the country's economy moves to higher value added activities and providing quality sustainable jobs, some traditional lower cost industries throughout the country are under pressure and other lower value activities are transferring out of Ireland. This shift in the structure of international trade poses challenges to economic policy makers in all developed countries. The Government will continue to pursue policies to promote lifelong learning and upskilling to improve labour market flexibility and will ensure where necessary that appropriate training supports are provided for workers in sectors that are no longer competitive and assist workers who lose their jobs in finding alternative employment.

It must be remembered that Ireland also experiences the benefits resulting from globalisation as new markets and business opportunities open up for Irish companies. The level of foreign direct investment in Ireland relative to the size of the economy also remains one of the highest in the world. While competition from emerging markets for FDI has intensified, Ireland continues to punch above its weight when it comes to attracting overseas investment. Although our relative costs are now higher, we have responded nationally to a changing environment by positioning ourselves as the location for more advanced activities with more qualified and better paying jobs.

During 2006 IDA Ireland successfully marketed the country as a location for 71 new investments valued at more than €2.6 billion over the next few years. The agency also successfully negotiated 54 research and development projects representing an investment of almost €470 million. Ireland is now a global competitor for research and innovation investment from multinational companies and leading research institutions.

Notwithstanding these positive developments, the Government, my Department and the enterprise development agencies are not complacent about the future challenges facing the country's economy. One of our main tasks is to ensure Ireland remains an attractive place to do business and to support the development of economic competencies higher up the value chain. In that regard, we continue to work to maintain and enhance our framework competitive conditions, and promote new areas of competitive advantage by developing our research and development base, investing in critical physical and communications infrastructures and promoting tertiary education and lifelong learning.

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