Brendan Howlin (Wexford, Labour)
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Question 135: To ask the Minister for Enterprise, Trade and Employment the number of redundancies in 2006; if he has specific plans to address this problem during the first half of 2007; and if he will make a statement on the matter. [2524/07]

Micheál Martin (Cork South Central, Fianna Fail)
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23,684 actual redundancies were notified to my Department in 2006.

Over the last number of years there has been a significant churn in employment. Some traditional low-cost industries throughout the country are under pressure and are closing. Other sectors, especially the services sector, are providing significant new employment opportunities. Since 1997, over half a million new jobs were created in Ireland and the number in employment now exceeds 2 million. The unemployment rate is 4.5%, which is the second lowest in the EU, and is considered to be virtually full employment.

In the last 12 months alone, almost 26,000 new permanent full time jobs were created in firms supported by the enterprise development agencies. Despite increasing global competitive pressures, the latest Quarterly National Household Survey (Quarter 3 2006) from the CSO also shows an increase of 83,500 in employment compared to the corresponding period in 2005. Furthermore, this increase is spread across all sectors of the economy.

While the changing nature of our economy has seen some losses, in contrast, the new jobs created in the enterprise development agencies' client companies in the last number of years are heavily concentrated in high value-added, knowledge-based companies that offer greater security in the face of intense international competition. Irish manufacturers engaged in specialised, sophisticated, high technology and value-added activities, and/or operating in non-commoditised markets (e.g. the medical technologies and pharmaceuticals sectors) can continue to compete successfully on international markets going forward. These sectors require specialised skilled staff, specialised technologies, flexible operations, and other factors that are not readily available in many low cost economies, such as modern Intellectual Property (IP) protection laws, a business friendly regulatory environment, etc.

One of my Department's main tasks is to ensure that Ireland remains an attractive place to do business, and to support the development of economic competencies higher up the value chain. In that regard, we continue to work to maintain and enhance our framework competitive conditions, including our general taxation package which incentivises both the wealth creating business community and those in, and preparing to enter the labour force. We are also working to promote new areas of competitive advantage, such as by developing our R&D base through the Strategy for Science Technology and Innovation.

The enterprise agencies also 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. Furthermore, we are continuing to pursue policies to promote lifelong learning and up-skilling to improve labour market flexibility and, where necessary, ensure that appropriate training supports are provided for workers in sectors that are no longer competitive, and who may need to find alternative employment.