Bernard Durkan (Kildare North, Fine Gael)
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Question 94: To ask the Minister for Enterprise, Trade and Employment the extent to which he or his Department have examined the underlying reasons for a growing lack of competitiveness in the Irish economy; the conclusions reached; his proposals to address the issue; and if he will make a statement on the matter. [25453/07]

Micheál Martin (Cork South Central, Fianna Fail)
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Ireland unquestionably faces competitiveness challenges, but to categorise it as becoming uncompetitive would be wrong. Rather the economy's competitive advantages are changing. This reflects the dynamic economy that Ireland is today. The structure of enterprise and the nature of job creation is changing. No modern economy is static and Government policies reflect this. Well balanced, pro-enterprise measures are helping the transition from an economy that was dominated by low cost manufacturing to one where international traded services, advanced manufacturing and an expanding research and development sector are now providing the impetus for employment, as well as foreign and indigenous investment.

Many Irish jobs are dependent on what we produce for world markets. Exports grew by an annual average of 5.2% between 2000 and 2006. For the first half of this year, export growth has been much stronger, increasing by 7%. Furthermore our services exports continue to be exceptionally strong. In 2000 Ireland's share of world trade in services was about 1.3%. Today it is about 2.6%. This is a sector that requires skill and a particular commitment to customer understanding.

These two factors alone show that Ireland has strong credentials when it comes to competitiveness. When it comes to either investing here or buying from companies that are based here, international markets and investors look for value for money and a return on investment. Ireland provides this.

Undoubtedly recent problems in global financial markets and the surge in the value of the Euro against the US dollar and dollar linked currencies will make it harder to win international business. Likewise our cost base has been moving out of kilter with many of our leading partners. Nevertheless, through our enterprise development agencies we are providing an extensive range of measures to help enterprise compete on the basis of higher productivity, innovation and research. There will be no diminution in my Department's commitment to strengthening the enterprise sector through its agencies. Government equally, through its own prudent management of the economy and finances, as well as through the Social Partnership process, will seek to secure a better equilibrium in the cost base of the economy.

Furthermore policies to strengthen competitiveness will continue to be informed by the analysis and suggestions of the National Competitiveness Council and the broader evaluations that are part of the work programme of Forfás, which advises me on enterprise, science and trade related issues.