Dáil debates

Wednesday, 4 July 2007

Other Questions

Industrial Development.

3:00 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 10: To ask the Minister for Enterprise, Trade and Employment the progress of the high level working group on manufacturing in reviewing the challenges faced by workers in vulnerable sectors, and proposals they have made. [18805/07]

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Fine Gael)
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Question 33: To ask the Minister for Enterprise, Trade and Employment the latest activities of the high level group on manufacturing; and if he will make a statement on the matter. [18994/07]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 10 and 33 together.

The high level group on manufacturing was established under the Towards 2016 social partnership agreement. Its terms of reference as set out in section 7 of that agreement 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 comprises four representatives from IBEC, ICTU and the Government, and is chaired by a senior industry representative. My Department is providing the secretariat for the group.

The group has met on five occasions since February of this year and is examining a range of issues concerning the performance of the sector and the challenges it faces. Since it was established under the auspices of the partnership process, it will report on its deliberations to that forum in the first instance. While it is a matter for the group to determine its schedule of meetings and timescale for reporting, I understand it hopes to complete its deliberations by the end of the year.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Does the Minister accept that the last Government failed to replace jobs, particularly in the manufacturing sector, in regional towns? There have been significant losses in this regard. Has the high level working group on manufacturing made any specific recommendations to the Government? If so, when will we be told what those recommendations are? Has the group identified sectors that would make suitable replacements for declining manufacturing industry and the skills needed for the workforce to become employable in target sectors?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The commentary on manufacturing has been overplayed. The NCB report of 14 June on Ireland's competitiveness takes a more robust position than that of some other commentators. The report argues that Ireland's competitive position is safe. However, I do not accept we can ever be safe; it is essential to safeguard our competitiveness.

It is worth pointing out that the yield from manufacturing has been significant. We have lost jobs in some traditional sectors but manufacturing continues to be an important and integral part of the economy, directly employing some 250,000 persons. Output grew by 35% in volume terms and turnover increased by 16% in 2005. Employment decreased by 11%, which may be a combination of outsourcing or improved technology and innovation. High value manufacturing continues to be a key driver of innovation and technological advance.

The working group, which was established under Towards 2016, has not yet made recommendations either to me or to the social partners. I have met with the chairperson and I look forward to clear, implementable recommendations being brought forward.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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When?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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We must be balanced in how we describe and comment on manufacturing. The Government is committed to the sector. It is changing, however, and we have a different type of manufacturing from what we had five years ago.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Can the Minister allay the concerns of many that this working group may be little more than a talking shop and that there is no date for delivery of recommendations and no specific timeframe for an outcome? Must we wait until 2016 to see results?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The indications are that the working group will complete its deliberations by the end of the year, if not sooner.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Has the Minister received representations from the Irish Exporters Association regarding its worries about port capacity to deal with the transport of goods onto mainland Europe? We must ensure an appropriate infrastructure is in place to deliver our manufacturing goods to the marketplace.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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This is an issue of which I am aware from my discussions with representatives of the port authorities earlier this year. The issue of port capacity was raised with the Irish Exporters Association at its annual awards event. As the fundamental vehicle through which we export much of our goods, it is important we expand and develop our port capacity.

The Deputy asked about manufacturing.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I asked the Minister whether he is aware of the representations he might have received from the Irish Exporters Association in the context of ensuring we have a port capacity appropriate to transporting our manufactured goods to mainland Europe.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I am aware.