Ivor Callely (Dublin North Central, Fianna Fail)
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Question 96: To ask the Minister for Enterprise, Trade and Employment the measures in place to monitor and maintain the attractive and competitive position of the Irish economy; the policies in place to sustain and grow the economy; and if he will make a statement on the matter. [8125/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 121: To ask the Minister for Enterprise, Trade and Employment the action he will take to address the issue of a lack of competitiveness in the economy leading to major job relocation to various overseas destinations with particular reference to the quality and value of the jobs now relocating; and if he will make a statement on the matter. [8533/07]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 96 and 121 together.

Every economy of the developed world experiences flows of capital as firms make adjustments to their operations and decide where to locate different aspects of their value chain.

The National Competitiveness Council in its most recent report, Ireland's Competitiveness Challenge, has made a number of recommendations aimed at improving our overall competitiveness. It outlines policy recommendations across the following areas: labour force; social capital; public income and expenditure; regulatory environment; infrastructure; productivity of Irish-based enterprise; Ireland's education system; innovation, research and development; costs of doing business in Ireland; and energy.

The Government is committed to acting on the recommendations of the National Competitiveness Council, which are designed to stimulate productivity growth and improve our ability to sell goods and services abroad. For example, the National Development Plan 2007-13 proposes a wide range of investments which will improve productivity by removing infrastructural bottlenecks that increase costs. It will enhance the skills of graduates and people already in the labour market, and will create a more supportive environment for enterprises in developing new products and services. The strategy for science technology and innovation will drive research and development performance and underpin long term competitiveness.

In summary, the Government recognizes the need to stimulate productivity growth and improve our ability to sell goods and services abroad. A range of strategies is now in place to assist and I am confident that we can build on our past achievement while laying the pathways for growth and higher productivity in the future.

Catherine Murphy (Kildare North, Independent)
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I wonder whether the Minister read the article at the weekend by the Irish chief executive of Intel on his concerns about our competitiveness. Intel is accustomed to making adjustments. It is at the cutting edge of technology and research and development is a major aspect of its activity. It is involved in all aspects of manufacturing from research and development and innovation right through to production, and from that viewpoint, it is a very impressive operation. Is the Minister concerned about some of the adjustments being made by Intel which has reduced seriously its number of contractors who were a permanent feature on the Intel site for some time? Perhaps the job losses in this sector have gone under the radar. They might not have been noticed because they have been spread among a number of contractors. Will the Minister engage with firms such as Intel in respect of the concerns they are expressing? As Intel is based in my home town, as well as the constituency I represent, I tend to be realistic when I comment on the adjustments it has to make. However, I am concerned about the loss of jobs at contractor level. Intel has expressed concern about Ireland's economic competitiveness. Does the Minister engage with companies such as Intel, or is he removed from the process, whereby the various agencies discuss matters of this nature with such companies? Does he hear from the agencies rather than directly from companies?

Micheál Martin (Cork South Central, Fianna Fail)
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Since my appointment as Minister for Enterprise, Trade and Employment, I have met the managements of such companies, including the manager of Intel's Irish operation, on a regular basis. The employment offered by Intel is robust. Many towns would love to have an employer such as Intel which continues and will continue to make a significant contribution to the economy. Intel is investing significantly in research and development initiatives. As part of its ongoing contact with the company, IDA Ireland is anxious to broaden the range of activities in which Intel engages in Ireland. IDA Ireland and Intel are hoping to work together over the next ten years to engage in research which will produce new products and solutions for the market. That is the best way of underpinning Intel's contribution to the Irish and global economies, which has been to produce quality products.

The number of jobs in many major companies varies as demand peaks and falls over the course of the year. Seasonal employment is distinct from the core employment offered by such operations. It is obvious that more temporary contracts are offered by many companies in the run-up to Christmas, before the level of such employment decreases again. The volume of activity sustained by a company the size of Intel and those who engage with it will always ebb and flow. The Government has been articulating the need to safeguard in a vigilant manner the cost base of the economy as it has developed. We have to be conscious of the competition we face in areas such as energy and labour costs. We are taking on board the concerns outlined to us by many companies. When I met representatives of a number of companies, not including Intel, in the United States last week, they spoke positively about the degree to which their Irish facilities contributed to their global successes. They made no bones about the high level of skill of the Irish workforce and the continuing contribution of Irish workers to the successes of global companies. Such comments have been repeated by representatives of many companies which operate in Ireland.