Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 63: To ask the Minister for Enterprise, Trade and Employment the action he is taking to develop the manufacturing sector of the economy; and if he will make a statement on the matter. [6117/05]

Micheál Martin (Cork South Central, Fianna Fail)
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Enterprise policy is being actively refocused towards creating conditions that will make possible a sustained shift to higher skill, knowledge-intensive activities and in which advanced manufacturing expertise will be an important contributor to growth and employment. That new focus is essential if our enterprises are to capture sustainable competitive advantage in niche markets that are less susceptible to cost-based competition. The range of incentives provided through the enterprise development agencies is designed to meet those objectives and help enterprise operate at higher levels of skill, undertake higher-order strategic investments, product development and innovation. The agencies are active and supportive partners with enterprise in helping new, market-oriented investment projects.

As Ireland becomes more economically sophisticated, services will become a much more important source of wealth and employment creation. Because of the importance of manufacturing, however, we cannot afford to be complacent about any consistent long-term erosion in employment in such an important economic sector.

Manufacturing remains at the heart of overseas investment and is likely to do so for a considerable time. That is reflected in changes to tax rules to encourage more research and development activity to take place here, particularly in the area of high-value-added and customer-driven innovation. The sustainability of employment levels in manufacturing is heavily tied to the sustainability of their competitiveness in delivering products and services in Ireland and in export markets. To that end Enterprise Ireland is working with its client base to improve the productivity of this important aspect of our industrial base.

The Government is committed to developing a competitive economy that will be resilient to competitive pressures from today's global economy. That involves maintaining a pro-business environment that will provide firms with a solid stable platform from which they can successfully compete on both domestic and international markets. Our economic and enterprise policies are designed to promote deeper, stronger and more profitable connections with global markets, and to make Ireland one of the most attractive locations in the world from which to do business.