Pat Breen (Clare, Fine Gael)
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Question 131: To ask the Minister for Finance if he has identified economic factors underlying the loss of export market share by Ireland and significant job losses in trading sectors in the past four years. [10191/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Exports of goods and services are estimated to have increased, in real terms, by an annual average of 4.1% in the last 4 years. Export growth in recent years has been concentrated in the services sector rather than in traditional manufacturing sectors. Between Q4 2002 and Q4 2006 the numbers employed in manufacturing declined by 13,700, or 4.5%. However, this decline in employment in the manufacturing sector has taken place over a period when total employment increased by 282,500, or 15.8%.

The changes in the composition of exports indicate that some of the decline in manufacturing employment can be seen as part of a process of structural change in the economy. While manufacturing jobs are being lost, many jobs in high value added sectors such as financial services are being created. It is also the case that losses in competitiveness over the last number of years are placing pressure on manufacturing firms. It is for this reason that we must remain focused on restoring and enhancing competitiveness going forward, if Ireland is to continue growing strongly.

In the medium term, the outlook for Irish export performance remains broadly positive. Our existing strong export base, particularly in pharmaceuticals, food, medical devices, software and financial services, allied with our pro-business environment and skilled workforce, are factors which provide good grounds to expect a continued solid export performance from the Irish economy over the medium term. To ensure that our export sector remains strong, the Government is adhering to prudent fiscal policies as well as investing in infrastructure, education and skills development.