Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 145: To ask the Minister for Enterprise, Trade and Employment the extent to which he and his Department have engaged with enterprises proposing to relocate to other economies with a view to addressing the cause or causes; and if he will make a statement on the matter. [15790/07]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

State support for enterprise and job creation, including embedment and retention, is channelled through the industrial development agencies. While we have been very successful over the past decade in attracting investment and jobs we now face new challenges. We are no longer a low cost country with high levels of unemployment. Ireland is now a less competitive location for what might be called basic manufacturing or services type activities, with low cost destinations such as China and Central Europe much more attractive to investors engaged in these type of activities.

Consequently, the primary requirement now is for higher value added investment requiring high skill levels, in particular investment that is, as far as possible, innovation rather than production orientated and that links to an increasingly sophisticated business environment. Only economic activities with these characteristics can sustain our current cost and wage levels and allow us maintain economic growth.

IDA is actively seeking to facilitate a progression in the sophistication and breadth of its clients' Irish operations. This means not only increasing value added in their manufacturing operations, but also adding corporate level innovation (such as R&D) and service, logistics and supply chain management functions, and back office functions, alongside manufacturing. The objective is to create more rounded and strategically important operations within the overall corporation, which are better embedded and more suited to the competitive characteristics of the Irish economy in the medium to long term.

Enterprise Ireland offers an extensive suite of supports that assist client companies counteract competitive pressure without resorting to relocation. Some of the measures available include the Enterprise Ireland Productivity Improvement Fund to increase competitiveness through technology and training, a suite of R&D supports that are targeted at companies undertaking R&D for the first time, an extensive benchmarking service to encourage client companies to think about change and monitor progress, a TechSearch initiative to assist clients identify new technology acquisition opportunities, and a holistic supply chain capability building measure through the Supply Chain Management (SCM) Initiative.

I am satisfied that the strategies and policies being pursued by Agencies, in particular the focus on the elements of investment that best fit Ireland's competitive characteristics at this time and which is supported by a €13.6 billion investment in Enterprise by my own Department under the new National Development Plan, will provide the maximum positive sustainable benefit to our economy. Overall the Government is investing some €184 billion over the next seven years in securing the next step-change in our country's economic and social transformation. This investment will enable us build on the recent unprecedented levels of economic and social progress and continue to successfully compete in the global marketplace, delivering high quality employment opportunities for our people.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 147: To ask the Minister for Enterprise, Trade and Employment the efforts that have been made to replace the jobs lost or relocated from County Kildare in the past five years; and if he will make a statement on the matter. [15792/07]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

State support for enterprise and job creation is channelled through the industrial development agencies. While I may give general policy directives to the agencies I am precluded under the Industrial Development Acts from giving directives regarding individual undertakings or from giving preference to one area over others.

I have been assured by the agencies under the remit of my Department that they are actively endeavouring to attract new investment, to encourage the start-up of new businesses, to grow existing businesses and to develop the labour market in County Kildare.

IDA Ireland is promoting County Kildare as part of an integrated East Region with access to a population base of 1.5 million people. In recent years Kildare has attracted some world class manufacturing companies such as Intel, Wyeth Medica, Braun Oral B and Hewlett Packard. At present, there are 24 IDA supported companies in Kildare employing approximately 10,310 people.

The success of our economy over the last decade means that Ireland is now less competitive for lower end manufacturing type activities, with low cost destinations such as China and Central Europe much more attractive to investors engaged in these type of activities. To address this market shift IDA is refocusing to higher value type activities in areas such as International Services, Software, Financial Services and Pharmaceuticals and, in 2005, IFS (a financial services company) established a facility in the Millennium Park, Naas.

To support this strategy IDA Ireland is working closely with educational institutions in the County and is also working with FAS to provide guidance in developing the skill sets needed by those already in the workforce who are interested in upskilling.

Enterprise Ireland has a wide range of supports for start up companies. The Agency is actively involved in assisting Kildare-based client companies to grow and develop their businesses. Since 2004 Enterprise Ireland has approved over €7.8m in supports for client companies in Kildare and made payments exceeding €4m to help them grow their sales and exports and improve innovation and new product development. In 2006, there was a slight increase (168) in the numbers employed in Enterprise Ireland supported companies, with 167 companies now employing 5,430 people in the County. Employment growth in Kildare compares favourably with the national average.

In addition, Enterprise Ireland has supported the development of Community Enterprise Centres in County Kildare at Allenwood, Clane and Athy. Funding of over €698,000 has been approved for these Centres, which are significantly contributing to job creation. In order to ensure that NUI Maynooth continues to develop strong links with industry in the region, the Agency has, since 2004, approved funding to the College of over €2m to support innovation partnerships with industry.

I am satisfied that the efforts of the agencies, together with the roll out of the National Development Plan will continue to bear fruit for the people of County Kildare.