Enda Kenny (Mayo, Fine Gael)
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Question 166: To ask the Minister for Enterprise, Trade and Employment the action he intends to take to reverse the continuing trend of job losses in the manufacturing sector; and if he will make a statement on the matter. [31627/05]

Micheál Martin (Cork South Central, Fianna Fail)
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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.

Ireland has a predominantly modern manufacturing base which competes in a range of growth sectors. However, as with most other European countries, there are areas of activity in which Ireland's competitiveness is seriously challenged. In the main, these are in areas where the availability of lower cost locations is making cost the primary driver behind business decision making. It is inevitable that the investment decisions of some companies will be influenced by the competitive attractions of alternative geographic locations. Our focus is firmly concentrated on managing the current transition with the best possible blend of policies to strengthen both national and firm level competitiveness.

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. 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.

My objective and that of the Government is to ensure that our economy remains a globally competitive, profitable and secure location for business. 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.

A key element of the Government's strategy to help enterprise is to encourage increased levels of investment in research, business related technological development and innovation across all enterprise sectors. These increased levels will assist firms to produce improved products and services with added value. In the longer term, this approach will provide both more sustainable and higher quality jobs.

While there has been a decrease in the number of jobs in manufacturing in recent times, there is consistent growth in job numbers in other areas. The most recent quarterly national household survey published by the Central Statistics Office on 14 September 2005 shows that there were 2,014,800 persons in the labour force, which represents an annual increase of 94,500 or 4.9%. This is the highest year on year increase since the survey began.