Dinny McGinley (Donegal South West, Fine Gael)
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Question 207: To ask the Minister for Enterprise, Trade and Employment if he will consider providing extra resources to those State agencies involved in job creation in view of the huge levels of job losses in the manufacturing sector; and if he will make a statement on the matter. [25041/05]

Micheál Martin (Cork South Central, Fianna Fail)
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The total Oireachtas grants to the industrial development agencies under my remit amount to over €560 million in 2005. Enterprise Ireland delivers a wide range of supports to Irish companies, targeted at the specific requirements of clients throughout all regions to ensure that they develop to their full potential in terms of employment, innovation and exports. Enterprise Ireland's financial supports to industry amounted to €107 million in 2004, while client companies created 11,898 new jobs in 2004, of which 7,934 were first-time job gains.

In 2004, overall client exports increased by 5.6% to €10.2 billion with 107 first time exporters and 154 companies establishing a new market presence in overseas locations. In 2004, €50 million was invested in companies to undertake research and development projects. In May, I announced the launch of the productivity improvement fund, which will provide supports leading to sustainable improvements in productivity in recipient manufacturing companies.

The employment level at Shannon Development assisted companies for 2004 remained stable at 19,739. The agency has a number of initiatives aimed at stimulating new enterprise and sustaining existing companies. Shannon Development's knowledge network is focused on transforming the Shannon region into Ireland's leading knowledge-based business location. Since its launch in 2001, the company has invested over €40 million of its own resources in developing the network and significant progress has been achieved at all five knowledge network locations.

IDA Ireland reports that foreign direct investment, FDI, jobs in less technologically advanced sectors or companies are now beginning to be counter-balanced to some degree by several significant new investments in high technology projects, including some notable research and development investments, which require high skill levels and are, therefore, a better fit with the competitive attributes of Ireland today. Between 1995 and 2004, full-time employment in manufacturing increased by approximately 6% from 79,000 to 84,000.

These activities are well complemented by the work of the county enterprise boards, CEBs. Since their establishment to the end of 2004, the CEBs have assisted 17,050 projects worth over €155 million in grants. The actual net employment creation in CEB-supported enterprises has yielded 28,296 jobs nationwide.

Furthermore, other agencies are contributing to the creation of an innovation climate. Through its investments, Science Foundation Ireland is supporting knowledge creation and human capital development, which are the corner stones of a knowledge economy. By the end of August 2005, SFI had awarded over €464 million to more than 600 projects to support in excess of 1,000 outstanding researchers and their teams in creating the knowledge and driving the discoveries to underpin future competitiveness in key industries. The SFI programme is part of our research and development effort in the national development plan, under which we are increasing the research and development spend in 2000 to 2006 to five times what it was in the previous period.

I am confident that the agencies will continue to contribute to shaping our economy into one that supports businesses with the ambition and capability to succeed, as well as providing employees with the opportunities to gain skills of lifelong usefulness and jobs of value, and that they have been allocated sufficient resources to carry out these functions.