Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

Question 5: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the figures for the level of industrial employment at the latest date for which figures are available; the way in which this compares with the equivalent date in each of the previous five years; the steps that are being taken to counter the decline in industrial employment; and if she will make a statement on the matter. [13835/04]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

Rather than go through the figures for average annual level of industrial employment for each year between 1998 and 2002, I will give the Deputy the figures I know he will want to comment on. In 1998, the figure was 257,900, and the latest provisional figure at December 2003 was 244,100. That is a job reduction of 13,000 or so. In each of those years from 1998, the figure was falling by about 2,000 or so.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

If I had the figures I would not have asked the question.

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

Industrial employment is a key element of our economy and will continue as such well into the future. Nevertheless, we have to set the decline in industrial employment against continued employment expansion in the broader economy. In the time period to which the Deputy's question relates, between 1998 and 2003, more than 270,000 jobs have been created and Irish unemployment is among the lowest in the European Union and significantly lower than that in France, Germany, Finland or Sweden. This has been helped in no small part by the Government's economic policies.

While industrial employment has reduced in recent years, employment in international and financial services has displayed remarkable resilience despite international difficulties. Among firms within these sectors supported by the development agencies, employment has grown consistently from 39,800 in 1998 to more than 67,000 in 2003. Employment in these sectors remained relatively stable last year, which is quite an achievement given what happened in the global economy.

The development agencies are targeting more resources to underpin the competitiveness of companies by encouraging them to move into higher order functions such as research and development, pumping more effort into innovation and developing more complex or customer driven services. Increasing enterprise competitiveness in high-margin activities will give companies the sustainable competitive advantage required to survive in the evolving aggressive cost driven, global business world.

In this regard I have asked the enterprise strategy group to recommend and prioritise new strategies and policies to ensure that the prosperity we enjoyed in the past decade will continue into the future. The group is examining the issues that I and my Government colleagues will need to take to strengthen our enterprise environment, promote an innovation and knowledge driven economy and help sustain those industries already providing employment here. The group is working towards submitting a report to me by the end of this month.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

I tabled this question to discover the Tánaiste's attitude to the decline now evident over a number of years in industrial employment. It is a very important issue, and I am taken aback by the apparent complacency the Tánaiste has shown. Does the Tánaiste accept that the proportion of people in industrial employment here will continue to decline? Does that ring alarm bells with her? Will she accept that industrial employment is a bedrock that spins off service jobs, and that if we continue to erode our industrial employment base, this will have critical impact across the entire economy? Will she accept that as The Irish Times indicated in an analysis done at the end of last year, one of the consequences is a reduction in the average earnings per hour towards the end of last year? The analysis showed that average earnings per hour fell by 0.7% over the final quarter of last year, and average weekly earnings fell by 0.2% over the same period.

Many of the service jobs now being vaunted are in the lower wage category. It reminds me of a comment made in the United States to the effect that thousands of additional jobs had been created, and the respondent agreed, saying he had three of them — "because I need three to survive".

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

Deputy Howlin asked if the decline will continue. Unfortunately, I believe it will. This matter took up a great deal of attention at our recent informal EU Council meeting, and a paper from the European Commission will be discussed next week at our Council meeting in Brussels on relocation or de-industrialisation. The matter is a concern of every European country. Some 70% of EU employment is in services, which also account for 70% of the EU GDP, a figure which will probably grow over time. The reason Deputy Howlin supplied his own answer is that many of the industrial jobs are in basic manufacturing, and there are many areas of the world, such as China, Morocco, Brazil and Mexico, where wage costs are very significantly lower than in Europe and in the United States. This is also an issue in the United States in the context of the election. All developed economies are experiencing a decline in industrial employment, and companies are now acting on a global basis, and restructuring very rapidly. They are moving jobs very quickly to places where not only wages but cost bases are substantially lower.

That is why we are putting such huge emphasis on alternative forms of employment. I accept that not everyone will be a scientist or a highly-skilled employee, but there will be many jobs in services and in higher value-added activity as far as manufacturing is concerned. The hope is that employment opportunities will be generated for everyone who is available to work in Ireland. That means we must move everyone up to the next level.

Notwithstanding what I have said, I have seen fantastic examples of Irish companies in textiles, engineering and in basic activities which against the odds, because of imaginative in-house policies, are doing extraordinarily well, and increasing employment.