Paul Kehoe (Wexford, Fine Gael)
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Question 175: To ask the Minister for Enterprise, Trade and Employment if he will set up a national forum on manufacturing comprising all major players in the industry in order to address the continuing loss of jobs in the sector; and if he will make a statement on the matter. [25043/05]

Brendan Howlin (Wexford, Labour)
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Question 685: To ask the Minister for Enterprise, Trade and Employment the steps he intends to take to deal with the continuing serious level of job losses in the manufacturing industry; his views on the rate of job losses in the traditional manufacturing sector; the steps which are being taken to provide replacement jobs in these areas; and if he will make a statement on the matter. [25670/05]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 175 and 685 together.

Job losses in the manufacturing sector are of ongoing concern and the Government is doing all in its power to create structures through its enterprise development and training agencies, which will facilitate those who have lost jobs to gain new ones, particularly ones that offer more opportunity both in terms of skills and permanence. However, there is no escaping the fact that job losses occur and will continue to occur as our economy changes. Ireland cannot continue to compete in low-value activities with countries that have a much lower cost base and wage base.

My objective and the Government's objective is to ensure that our economy remains a globally competitive, profitable and secure location for business. I believe we can best help enterprise, including the manufacturing sector, by continuing to implement policies that are pro business and by implementing the right balance of enterprise supports and at the right time to help business. When provided with the best supporting and competitive environment, business and industry will develop to capitalise on investment and growth opportunities. It is the Government's intention to enable enterprise growth by policies tailored to address the competitive pressures transforming the global economy.

Manufacturing has been a key driver of prosperity across the economy for many years and enterprise policies will continue to emphasise the strategic importance of the sector to future economic growth. Indeed, the Enterprise Strategy Group, ESG, recognised the importance of the sector in providing a foundation of skills and technologies on which to build a high performance, high value added and technologically orientated manufacturing sector into the future. We must realise, however, that global competition from fast developing economies is placing unprecedented competitive pressures on manufacturing plants, and particularly those involved in low margin activities. Some firms are unable to compete in these new competitive circumstances.

The success of many world class plants gives us some solid cause for optimism that our manufacturing base will continue to operate at the leading edge of technologies and processes, while sustaining significant employment. From a policy perspective it is important to put in place selective initiatives to maximise this potential. Both IDA Ireland and Enterprise Ireland have specific programmes to assist their manufacturing clients tackle competitiveness problems.

I am also very encouraged by the continued ability of the industrial development agencies to secure new projects. I am satisfied that the strategies and policies being pursued by the Government and by the State development agencies under the aegis of my Department, will continue to maximise sustainable job creation and investment opportunities. The capacity of our economy to consistently expand quality employment opportunities, not only for our own labour force but for thousands of immigrants as well, strongly suggests that we have significant competitive strengths in the global context.