Bernard Durkan (Kildare North, Fine Gael)
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Question 289: To ask the Minister for Enterprise, Trade and Employment the number of manufacturing jobs lost in County Kildare in the past two years; if, in either or any case, such jobs relocated to other countries; and if he will make a statement on the matter. [18466/05]

Micheál Martin (Cork South Central, Fianna Fail)
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The tabular statement sets out the gains and losses in manufacturing jobs of agency supported companies in County Kildare in the years 2003-04. These data are only compiled on an annual basis.

As the statement indicates, there has been a net increase in agency supported jobs in the manufacturing sector in Kildare over the two year period of 589. Overall permanent employment in agency supported firms in County Kildare has increased from 9,171 in 1995 to 16,094 in 2004, an increase of over 75% which is significantly above the national average.

It is not possible to advise on the extent to which jobs lost in the period 2003-04 have been lost directly through relocation. Relocation is just one factor in the many enterprise related issues that determine employment levels. Firms invest in different regions for a variety of reasons and while there is little doubt that some firms establish themselves primarily to take advantage of reduced costs in lower wage economies, this is often not the only factor in deciding where to invest.

To counterbalance the competitive threat from lower wage competitor economies, our policy is to encourage a move to higher levels of productivity and value added products and services. The application of technology and intellectual endeavour is becoming more important than simple cost competitiveness as the foundation for growth and prosperity. Sustainable employment will be driven by companies with higher profitability that are more technologically advanced and prove a better fit with the competitive characteristics of our economy and are, therefore, less likely to move on the basis of simple cost influences.

Over the past few years the enterprise support agencies under my Department have been mandated to adjust their support strategies to meet both the needs of society in terms of high quality employment opportunities and the needs of businesses that generate and sustain those jobs.

Kildare continues to thrive across a broad range of activities in a number of important sectors. As a result, many job opportunities are being created within the county. IDA Ireland, in addition to targeting potential new projects, is also working with its existing client base with a view to supporting these companies with expansion and diversification of their activities, which will strengthen their presence in the region. I recently performed the official opening of the new International Fund Services (Ireland) Limited office in Naas, which is on target to employ 140 people by end 2005 and 240 by end 2006. In 2004, we saw the announcement of the largest ever ICT investment in the country, €1.6 billion, by Intel and a €21.4 million technology development centre by Hewlett Packard. A number of other large overseas companies continue to provide job opportunities.

Enterprise Ireland is actively involved in assisting Kildare based client companies to grow and develop their businesses. Since the beginning of 2002, EI has approved €9.3 million in support to companies to help them grow their sales and exports and improve innovation and new product development, in order that they can compete on world markets. Enterprise Ireland activity, in terms of job creation, is focused on supporting entrepreneurs setting up new high potential start-up companies, the retention of existing jobs and the creation of new jobs and also in enhancing innovation capability at a national and regional level, through support of research in companies and third level institutions.

Enterprise Ireland also works with other local agencies and organisations in the county to develop the local business infrastructure and is represented on all of the major development committees in the county. The development of community based enterprise centres is a crucial part of the drive to create new regional enterprise through the provision of infrastructural facilities to support the establishment and expansion of micro-enterprises through local community participation. Enterprise Ireland has supported the development of community enterprise centres in Kildare, at Allenwood, Clane and Athy, which are significantly contributing to job creation.

Kildare has also benefited from a significant investment in recent years in technological infrastructure in NUI Maynooth. This will be the key to ensuring that Kildare is an attractive location for knowledge based industry in future years. I am confident that the strategies and policies being pursued by the enterprise development agencies will continue to maximise sustainable investment and jobs for the people of Kildare.