Written answers

Tuesday, 21 February 2006

Department of Enterprise, Trade and Employment

Company Closures

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 410: To ask the Minister for Enterprise, Trade and Employment the implications for consumers here in the event of more oil or other fuel companies exiting the Irish market; and if he will make a statement on the matter. [7064/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Consumers benefit from competition in the market and the Government is committed to fostering competition in all sectors of the economy. Should any oil or fuel company decide to exit the market, I expect that there would be a high level of interest in the business being sold and many suitable prospective bidders. However, any such acquisition would be subject to regulatory clearance by the Competition Authority under the merger provisions of the Competition Act 2002.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 411: To ask the Minister for Enterprise, Trade and Employment the policy measures which have been put forward for consideration in view of concerns regarding operations previously undertaken here relocating to other countries; and the assessment he has undertaken of the various policy options. [6339/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The phenomenon of globalisation is changing the way economic production is organised the world over. Lower barriers to trade and improvements in transport technology are increasing the specialisation of production, resulting in a global supply chain. Products consumed today are most likely the result of production in several countries, with the package indicating only the location of final assembly. Our experience of this globalising trend has been a largely positive one, and Ireland is now one of the most open economies in the world, with a large merchandise trade surplus.

The shift in the structure of international trade does pose challenges to economic policy makers. In particular, the act of "moving up the value chain" as set out in the Enterprise Strategy Group report, sometimes results in the moving of production from Ireland. More attractive cost environments abroad will inevitably entice some firms that are unable to generate their required return from the modern enterprise economy into which we are evolving, but where relocation has occurred to date, it has largely been confined to relatively low technology, labour-intensive activities.

One of the principal tasks of my Department is to ensure that Ireland continues to be an attractive place to do business, and to help foster economic competencies higher up the value chain. In that regard, we have made significant attempts to maintain and enhance our framework competitive conditions, and to promote new areas of competitive advantage such as by developing our research and development base. Our priority is the creation of sustainable employment — such 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 that are consequently less likely to move on the basis of simple cost influences.

Ireland has so far shown itself to be sufficiently flexible and adaptable to move to higher value-added activities, providing quality, sustainable jobs. In large companies, this process of transformation often stimulates a reallocation and retraining of staff within the company. Encouraging such ongoing internal reorganisation in the face of international competition and continuing to encourage companies to undertake more sophisticated activities is a key policy governing the activities of the enterprise development agencies.

To support workers in acquiring the necessary skills to allow them the flexibility to take up new opportunities as they emerge, we are developing the national skills strategy, which will have as a central aim the task of updating our skills policies to ensure that Ireland is equipped with a flexible, skilled workforce.

I welcome the recent ICTU outsourcing statement, which recognised the importance of outsourcing to raising Irish living standards, and I echo its call to maintain labour market flexibility and promote training as a means to ensure that the benefits of international trade and investment are enjoyed by all.

Comments

No comments

Log in or join to post a public comment.