Bernard Durkan (Kildare North, Fine Gael)
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Question 123: To ask the Minister for Enterprise, Trade and Employment the number of jobs lost to the economy here in the past 12 months; if all or any have relocated to lower wage economies; the action taken or proposed to address this issue; and if he will make a statement on the matter. [19358/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 124: To ask the Minister for Enterprise, Trade and Employment the action he will take to create a better climate for the manufacturing sector in view of the number of relocations to more cost effective economies; and if he will make a statement on the matter. [19359/07]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 123 and 124 together.

Employment figures in Enterprise Agency assisted firms are collated on an annual basis. The latest figure available for total full-time job losses is 21,090 in 2006; 27,017 full-time jobs were created in the same year. While any factory closures or job losses are to be regretted they must be viewed in the context of an historically phenomenal period of job creation of well over half a million jobs since 1997.

Overall, Ireland has performed quite strongly over the last few years. However as the country's economy moves to higher value added activities, providing quality sustainable jobs, some traditional lower-cost industries throughout the country are under pressure and other lower-value activities are transferring out of Ireland. Such relocations 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. There are a variety of factors involved in a decision to relocate. In addition to relative wage rates and other cost factors, these may include business takeovers, consolidations and changes in product or market focus. While off-shoring can contribute to job losses for firms in some sectors, productivity gains achieved through off-shoring some activities also represents an opportunity to develop higher-end manufacturing and related activities domestically.

The fact is that Ireland is no longer a low cost economy and manufacturers in particular are facing increased competition from producers in lower cost economies. The model of manufacturing in developed countries is changing and Irish enterprises are adapting to those changes and engaging in higher value added activities in order to compete in the global marketplace. This has been achieved as a result of increased productivity, technology levels and sophisticated skills of Irish employees. Competition for foreign direct investment (FDI) is also relentless but Ireland continues to punch above its weight when it comes to attracting overseas investment. While costs are higher, we have responded by positioning ourselves as a location for more advanced activities, with more qualified and better paying jobs.

Despite a decline in manufacturing employment right across OECD countries, the sector remains a hugely important element of the Irish economy and indeed output continues to grow; in the past six years volume grew by some 34.9%, with turnover increasing by 16.1%. Even allowing for an overall decline in manufacturing jobs, certain areas such as Chemicals and Medical devices show dramatically increased levels of employment, 27% and 94% respectively. The overall economic contribution of the sector is graphically illustrated by the sector's expenditure of €25 billion on labour, materials, and services in 2005, and the fact that it accounts for roughly 30% of Corporation Tax receipts.

None of this is to imply complacency on the part of the Government or my Department with regard to the challenges of the future. The establishment under the Partnership process of a High-Level Group on Manufacturing is indicative of our awareness of the particular difficulties faced by the sector and the need to develop appropriate strategies to ensure its success. I look forward to the Group's findings and recommendations, which will be finalised later this year.

Bernard Durkan (Kildare North, Fine Gael)
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Question 125: To ask the Minister for Enterprise, Trade and Employment the position in regard to the relocation of facilities from a company (details supplied) in County Kildare to various other destinations; the extent to which it is expected to replace the jobs threat; and if he will make a statement on the matter. [19361/07]

Micheál Martin (Cork South Central, Fianna Fail)
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When the company in question announced the closure of its Naas facility last December, the reasons that were cited for the closure were a reduction in market demand, intense cost pressure from automotive manufacturers, competitive pressures and the euro/dollar exchange rate. The company decided it had no option but to retrench its global European mirror production into one company site in the United States. The workforce in Naas is highly skilled and it is anticipated that several members of the workforce will avail of the supports provided by the Development agencies including Kildare County Enterprise Board in order to establish their own technology-based businesses.

In recent years, a number of world class overseas manufacturing companies such as Intel, Wyeth Medica and Hewlett Packard have been attracted to County Kildare. As regards Naas itself, in May 2006, I announced a major investment of €28m by Dawn Farm Foods Ltd with support from Enterprise Ireland. A total of 100 new jobs will be created. A major expansion by Green Isle Foods is also underway. The Millennium Park in the town has three modern advance office buildings available for marketing to investors. A financial services company has already established in the Park. The services sector has also continued to grow and is now the most rapidly growing sector of the economy in Kildare.

I am satisfied that the efforts of the Industrial Development agencies will continue to attract investment and job opportunities to the area.