Bernard Durkan (Kildare North, Fine Gael)
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Question 376: To ask the Minister for Enterprise, Trade and Employment the extent to which Government policy is expected to be revised to combat job losses through relocation; and if he will make a statement on the matter. [8910/07]

Micheál Martin (Cork South Central, Fianna Fail)
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The relocation of businesses within particular types of industry, and with it a certain number of jobs, is a reality of modern global manufacturing for a highly developed economy such as Ireland. The factors that influence a firm's decision to relocate are varied and complex. In addition to relative wage rates and other cost factors, these may include business takeovers, consolidations and changes in product or market focus. While offshoring can contribute to job losses for firms in some sectors, productivity gains achieved through offshoring some activities also represents an opportunity to develop higher-end manufacturing and related activities domestically. 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 global supply chains. Ireland experiences both benefits and costs resulting from globalisation. The clearest demonstration of the benefits to Ireland from globalisation is illustrated by inward Foreign Direct Investment. This has been one of the principle causes of the strong economic performance of Ireland over the last two decades. However, as Ireland has gained from the mobility of modern production and supply chain models, competition from other locations for mobile FDI has intensified.

This shift in the structure of international trade poses challenges to economic policy makers in all countries. Ireland has so far been sufficiently flexible and adaptable to move to higher value added activities, providing quality sustainable jobs. Almost 300,000 new permanent full-time jobs were created in enterprise agency assisted firms since 1997. Furthermore, in large companies this process of transformation is often accommodated by a reallocation, retraining and upskilling of staff within the company, which leads to improved productivity. Where relocation has occurred to date, it has mainly been confined to relatively low technology, labour intensive activities. We are continuing to pursue policies to promote lifelong learning and upskilling to improve labour market flexibility and, where necessary, ensure that appropriate training supports are provided for workers in sectors that are no longer competitive, if they need to find alternative employment. The Government is committed to ensuring that Ireland continues to be an attractive place to do business and to helping to foster economic competencies higher up the value chain. In that regard, it has made significant progress in working towards maintaining and enhancing framework competitive conditions and promoting new areas of competitive advantage by developing this country's research and development base, investing in critical physical and communications infrastructure and promoting tertiary education and lifelong learning. Clearly the strategies set out in the new National Development Plan, which support the continued implementation of these policies, will play a crucial role in maintaining Ireland's attractiveness as an investment location.

Bernard Durkan (Kildare North, Fine Gael)
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Question 378: To ask the Minister for Enterprise, Trade and Employment if he has identified the cause or causes of job relocation from this country to other economies in the past five years; the steps he will take to address the issue; and if he will make a statement on the matter. [8912/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 379: To ask the Minister for Enterprise, Trade and Employment the number of jobs relocated from this country to more competitive economies in the past 10 years; the number of which were value added jobs; and if he will make a statement on the matter. [8913/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 380: To ask the Minister for Enterprise, Trade and Employment the steps he has taken to address the issue of job relocation to more competitive economies; and if he will make a statement on the matter. [8914/07]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 378 to 380, inclusive, together.

Economies throughout the developed world experience flows of capital as firms make adjustments to their operations and decide where to locate different aspects of their value chain. In this context and with the extending influence of globalisation, every major economy of the European Union has seen plants and jobs relocate to other economies. There will always be shifts in production units as companies react to market signals or changing circumstances in their individual product sectors. Companies relocate activities from Ireland for many reasons. Firms adjust their plant location and utilisation strategies to address matters such as accessing new markets, moving production nearer to customers, meeting firm or market specific customer relationship issues, accessing technology or other competitive considerations. Our best response to the realities of globalisation is to ensure that Ireland remains attractive for investment and enterprise growth. Enterprise support policies have consistently evolved to meet the needs of foreign direct investment and growth orientated indigenous firms. As a result Ireland is deeply connected with the global economy. When new technologies, products and services emerge in global trading our policies change to ensure we win for Ireland the leading companies that are at the forefront of global products and services. An increasing part of our economy is sophisticated, highly productive and value driven. This will continue as enterprise policies reposition our ability to offer the skills, education, research and innovation capabilities that modern mobile and indigenous firms need to be competitive in world markets. While Forfás undertakes an annual survey of employment in companies supported by the enterprise development agencies, no data is collected on the number of jobs that have relocated to other economies. Neither is data collected on employment that is attracted here from other less competitive economies.

What establishes the competitive credentials of the economy, however, is its ability to replace quality jobs with others of the same or higher skill level. There is a sustained flow of investors who, having made rigorous assessments of the economy, decide to significantly invest in the country and the skills of our labour force. Some of these investors have established plants here, know well the competitive benefits of doing business from Ireland and decide to reinvest and expand their operations. In 2006, IDA Ireland won 71 new projects involving total investment of €2.6 billion. These decisions are strategically important for investors. They are not taken lightly in the board rooms of multinational companies and are not made in favour of unattractive economies. Many of these investments are being won by regional locations where existing competitive strengths will be improved by economic infrastructure investment under the National Development Plan. Others are in the Research and Innovation space where investment under the Strategy for Science, Technology and Innovation will increase research funding and stimulate advanced graduate output to underpin the needs of these innovation orientated and customer focussed projects. Under my Department, Enterprise Ireland is making excellent progress in delivering its strategic ambition to invest and build the competitive strengths of indigenous firms in innovation, productivity, management development, technology acquisition and opening new markets in fast growing markets, globally. For example, the latest initiative by Enterprise Ireland, announced at the start of the year will see the agency contribute almost €1.5 million in support of five industry networks who are undertaking collaborative projects under its Industry-Led Networks Pilot initiative.