Bernard Durkan (Kildare North, Fine Gael)
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Question 122: To ask the Minister for Enterprise, Trade and Employment the action taken by his Department in each of the past five years to correct or adjust the competitive element of the economy; and if he will make a statement on the matter. [8668/08]

Micheál Martin (Cork South Central, Fianna Fail)
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There are several mechanisms that my Department has established to ensure that emerging competitiveness issues are addressed expeditiously and responded to promptly.

In July 2005, I asked the Expert Group on Future Skills Needs to identify the skills required for Ireland to become a competitive, innovative, knowledge based, inclusive economy by 2020. In response the Expert Group undertook a detailed programme of research and a wide consultation process, the results of which led to the National Skills Strategy. The publication of the National Skills Strategy in 2007 has set an ambitious vision for the skills profile in Ireland in 2020. This Strategy sets out clear long-term objectives in developing our human capital through upskilling, training and education for the period to 2020. The Strategy was prepared on the basis of a cross-Departmental and whole of Government approach to the issues.

Science and Technology is a key driver in this Department's policy agenda for competitiveness and growth. The Strategy for Science Technology and Innovation 2006 — 2013 was launched in June 2006. Over the lifetime of the NDP, the State will invest €6.1 billion in Science & Technology.

Enterprise support policies have consistently evolved over the years to meet the needs of both foreign direct investment and growth orientated indigenous firms. Enterprise Ireland recently published its Strategy for 2008-2010 following on from its 2005-2007 Strategy which was directed at transforming Irish industry. IDA has for many years followed a strategy of active engagement with our companies to move more of their strategic and higher value activities to Ireland, thus capitalising on the key advantages which Ireland has to offer today. We continue to be very successful with this strategy as is evidenced by the on going flow of high quality projects won for Ireland. With regard to labour force development, FÁS liaises with other relevant agencies such as Enterprise Ireland, IDA Ireland and the City/County Enterprise Boards to assist people in progressing towards employment, training or active labour market programmes. FÁS also works closely with the agencies to identify and support individuals who wish to start their own business.

One of the strengths of the Irish business environment over the last decade has been the light administrative and regulatory requirements faced by firms, particularly compared with other EU countries. One of the commitments in the Government's White Paper "Regulating Better" in January 2004 was to keep the State's regulatory institutions and framework under review. The subsequent report on the Introduction of Regulatory Impact Analysis (RIA) outlines the steps necessary for developing full regulatory impact assessments while the Business Forum on Regulation which is chaired by my Department is working to identify disproportionate administrative burdens that may impede competitiveness This Forum provides a mechanism for increased dialogue on regulation between policy makers and business.

The role of the Department's regulatory agencies such as the Competition Authority, National Consumer Agency, ODCE and NERA all play an important role in enhancing the regulatory environment for business and consumers thereby contributing to competitiveness. Furthermore, the Department is actively implementing the measures recommended in the report of the Small Business Forum 2006.

Bernard Durkan (Kildare North, Fine Gael)
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Question 123: To ask the Minister for Enterprise, Trade and Employment the number of Irish jobs relocated to low cost economies in the past seven years; and if he will make a statement on the matter. [8669/08]

Micheál Martin (Cork South Central, Fianna Fail)
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There are a variety of differing and complex factors and not just cost, which might influence a decision to relocate all or part of a firm's functions. Therefore, it is not possible to determine the number of jobs which have relocated to low cost economies. In addition to relative wage rates and other cost factors, these may include business takeovers, consolidations and changes in product or market focus. The offshoring of lower value-added functions is, however, part of the reality of modern global manufacturing for a highly developed economy such as Ireland.

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. Where job losses have occurred, these have for the most part been in low cost manufacturing. Other sectors, especially the services sector, are providing significant new employment opportunities. Since 1997, over half a million new jobs were created in Ireland and the numbers in employment now exceeds 2 million.

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.

One of the Government's main tasks is to ensure that Ireland remains an attractive place to do business, and to support the development of economic competencies higher up the value chain. In that regard, we continue to work to maintain and enhance our framework competitive conditions, and promote new areas of competitive advantage by developing our R&D base, investing in critical physical and communications infrastructures, and promoting tertiary education and lifelong learning and up-skilling to improve labour market flexibility, in line with the NDP and the Programme for Government.

Our priority remains the creation of high quality, sustainable employment, driven by companies with higher profitability, that are more technologically advanced and prove a better fit with the competitive characteristics of our economy, and are consequently less likely to move on the basis of simple cost influences.