Written answers

Wednesday, 17 May 2006

Department of Enterprise, Trade and Employment

Economic Competitiveness

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 211: To ask the Minister for Enterprise, Trade and Employment the action he has taken or proposes to take to combat job relocation to lower cost economies; and if he will make a statement on the matter. [18832/06]

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)
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Ireland's raised standard of living over the past decade, with its associated rise in consumer purchasing power has meant that the economy can not always compete with low wage economies like China in the manufacture of many low value added, basic goods. Improving our standard of living and competitiveness requires a focus on contemporary economic strengths, moving up the value-chain and attracting high-grade investment that rewards a highly educated workforce with commensurate high incomes.

Ireland has been successful in this approach and in extending employment opportunities across the economy. According to the CSO, employment increased by 87,000 in 2005, or by 4.7%. This was the largest growth in employment Ireland has seen since 2000 and compares very favourably with employment growth in the EU as a whole of just 1.6%.

Maintaining the capacity of the economy to consistently generate new employment opportunities is a key policy of this Government. To this end, our policies have a strong competitiveness focus and we are succeeding. Recent research by the IMD World Competitiveness Scoreboard ranked us as the world's 11th most competitive economy, up one place on last year's position.

Many challenges remain however. Employment growth must be matched with corresponding productivity improvements. Programmes such as Enterprise Ireland's Productivity Improvement Fund are aimed at doing just that. The Fund is directed at Irish SMEs who wish to improve their productivity through technology acquisition or labour force training.

We are directing more investment towards research and development so that our enterprises can build leadership positions in new technologies and markets. This will extend our reputation for excellence in science. Research and development is intrinsically associated with product development and business innovation, precisely the type of economic activity Ireland is attracting. This Government has invested heavily in these areas, with much of this made available through Science Foundation Ireland and the Higher Education Authority. Over the period of the current National Development Plan the Government has invested €2.5 billion in science and R&D.

My Department is also developing a strategic implementation plan for research, technology development and innovation. R&D will be a key theme and major area of investment in the next National Development Plan.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 212: To ask the Minister for Enterprise, Trade and Employment if he has examined the performance of Irish exports in each of the past five years; the extent to which action is required to stimulate the export business; and if he will make a statement on the matter. [18833/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 213: To ask the Minister for Enterprise, Trade and Employment the reason for the recent fluctuations in the volume of Irish exports; the remedial action he proposes; and if he will make a statement on the matter. [18834/06]

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)
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I propose to take Questions Nos. 212 and 213 together.

The table below gives details of Irish merchandise exports and imports over recent years. Trade volumes reached a peak in the 2001/2002 period and were then negatively impacted by the world economic slowdown, which particularly affected the US and European markets. Despite this setback, the volume of Ireland's trade has risen in the two years since 2003 and exports grew by about 5% between 2004 and 2005, which was a very creditable performance, as many of our key trading partners still have very low levels of economic growth. Our Trade surplus for the last five years has been over €30bn each year and this very healthy position has been maintained despite the significant rise in the cost of oil imports in recent times.

Notwithstanding these positive trends, work is ongoing to ensure we increase our level of exports to world markets. My Department, through its agency, Enterprise Ireland, is active in a wide range of promotional activities to assist indigenous companies to find new markets. I have been active in leading Trade Missions to further develop our existing markets and to pursue new opportunities. The markets in Asia, in pursuance of the Government's Asia Strategy and also in the new EU Member States, represent exciting possibilities. Development of export opportunities is therefore ongoing, to ensure that the recent very favourable trends will continue.

Year Exports Imports
€bn €bn
2000 83.9 55.9
2001 92.7 57.4
2002 93.7 55.6
2003 82.1 47.9
2004 84.4 51.1
2005 88.4 56.5

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