Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 91: To ask the Minister for Enterprise, Trade and Employment when the forum on manufacturing will convene a meeting; if there is a timescale for a report; and if he will make a statement on the matter. [8585/07]

Micheál Martin (Cork South Central, Fianna Fail)
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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.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I thank the Minister for his reply. Does he agree with the recent statements by the Central Bank and the Department of Finance to the effect that at present, no increase in export growth is taking place in our economy? Moreover, does he agree with Mr. Joe Macri, managing director of Microsoft Ireland, who recently stated the only reason Microsoft was in Ireland was because of its low tax regime?

Micheál Martin (Cork South Central, Fianna Fail)
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While I will deal with this question later, there has been and continues to be export growth in Ireland.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I refer to manufacturing export growth.

Micheál Martin (Cork South Central, Fianna Fail)
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In the past three years alone, Ireland's merchandise exports have recorded year on year increases of approximately 3% per annum. This was achieved despite adverse conditions in many markets, including currency rate changes. It follows a long-standing trend of many years that was disrupted in the aftermath of the attacks on 11 September, as well as the bubble difficulties associated with the technology sector.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister does not agree.

Micheál Martin (Cork South Central, Fianna Fail)
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Ireland continues to have a very healthy trade surplus, which stood at €29 billion on merchandise trade. On the issue to which people are adverting, it is always important to retain a sense of perspective about debate. The Deputy has had a tendency in the past four or five years to predict continually——

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister does not agree with his own people.

Micheál Martin (Cork South Central, Fianna Fail)
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——doom and gloom. I can quote all his comments to the effect that——

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I know the Minister has a communications unit.

Micheál Martin (Cork South Central, Fianna Fail)
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——unemployment would rise dramatically and employment would collapse. While I have all such quotations to hand, I will not repeat them as the Deputy is aware of them.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I am.

Micheál Martin (Cork South Central, Fianna Fail)
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Thankfully, the Deputy's predictions have not been borne out.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Does the Minister agree or disagree? He should answer the question asked of him.

Micheál Martin (Cork South Central, Fianna Fail)
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As a percentage of world share exports have fallen from 1.5% to 1.4%. However, there also have been changes in terms of the volume of world share. Obviously, growth in the past decade has been extremely rapid and the National Competitiveness Council compares Ireland with a number of benchmarked countries. This is important when preparing for the future and in ensuring that we provide the key ingredients to ensure our future competitiveness.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I asked the Minister whether he agreed with those who advise him, namely, the Department of Finance, the Central Bank and Mr. Macri, who chairs the Small Business Forum. He does not agree with them and considers everything to be great.

In recent hours, there have been some rumours in respect of the Proctor and Gamble plant in Nenagh, County Tipperary. If the Minister has any information in this regard, will he take this opportunity to indicate to Members whether there will be changes in the numbers employed there? The workers at least expect clarification on this matter. If the Minister has information available I am sure the House would be grateful.

Regarding these matters generally, is the early warning system operated by the IDA still in place? If so, is there any information we should know about this or rumours circulating about other facilities? How soon will we be able to engage with those companies? Is the Department or the IDA engaging with them to ensure the minimal amount of restructuring takes place in these plants in the context of employment?

Micheál Martin (Cork South Central, Fianna Fail)
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Mr. Hogan is correct to state the employees should be the first to be told by the company. The company indicated it will make an announcement to the workers tomorrow morning. We have been aware of the situation. A study on the optimal solution for Procter and Gamble as a company with regard to its future production of cosmetics in the Nenagh region has been ongoing for approximately nine months.

Engagement between the IDA and Procter and Gamble has been ongoing during that period. The Deputy can take it that the input of the IDA is to support the retention of jobs at Nenagh. We do not have specific details on the announcement to be made by the company tomorrow morning. Today, the company indicated to the IDA its first priority is to communicate directly to the workers tomorrow morning. In this situation, several scenarios are possible. It would be unwise to pre-empt the announcement.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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What about the early warning system?

Micheál Martin (Cork South Central, Fianna Fail)
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The early warning system is in operation. We continue to receive alerts. In some instances they come through and in others they are averted. The IDA has an ongoing programme of interacting with its client companies, particularly where it identifies areas that might be at risk, to see whether it can bring added and increased activities from other areas of a company's operations to Ireland. We had very good success stories in this regard throughout the country. Any decision is made by corporate headquarters at the company concerned. We engage in dialogue with the company where possible and the early warning system alerts us to any potential difficulties.