Paul Connaughton Snr (Galway East, Fine Gael)
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Question 47: To ask the Minister for Enterprise, Trade and Employment his views on whether rising import prices in the manufacturing sector threaten the recent limited growth in the sector; and if he will make a statement on the matter. [31918/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The recent rise in prices for manufacturing industry imported inputs is partly caused by increasing oil prices. The increasing price of oil, of course, must be paid for by manufacturers the world over, so this does not place Ireland at a particular competitiveness disadvantage.

The issue of cost competitiveness and the health of manufacturing depends on a much wider array of issues, from the availability of suitable skills to the impact of higher wage costs. The difficulties being faced by some manufacturing sectors in Ireland is mainly due to shifting patterns of international comparative advantage and the process of structural change, with capital and labour resources tied up in declining firms and industries being allocated to other 'higher value-added' activities more suited to the new, higher cost, Irish operating environment.

The Irish manufacturing sector has been a key component of the Irish economy over the last two decades and it will continue to be a significant contributor to exports, employment and economic growth in the future.

To assist industry to maintain competitiveness and increase productivity, the economic development agencies are working on an ongoing basis, to promote the adoption of new technology and best practice at company level. The agencies aim to support sustainable, high value added enterprise in Ireland through the provision of mentoring and developmental supports, the enhancement of management capabilities and critical workforce skills in client companies, support for the creation and implementation of strategies for market entry, development and growth, and strong supports for innovation and for research and development.