Joe Carey (Clare, Fine Gael)
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Question 276: To ask the Minister for Enterprise, Trade and Employment the steps he is taking to prevent the further loss of manufacturing jobs here; and if he will make a statement on the matter. [16426/08]

Micheál Martin (Cork South Central, Fianna Fail)
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The manufacturing sector in Ireland has evolved noticeably since 2000, in terms of the composition of industry and the nature of activities, and is likely to continue to do so. Manufacturing continues to be a significant employer accounting directly for 11% of total employment and a significant amount of associated services employment. In order to sustain and grow the sector, the Irish based manufacturing enterprises will have to continue the progression to high value added sectors and activities, and continue to increase productivity through investments in human capital, technology and innovation.

The latest available data on manufacturing employment is that compiled by the Central Statistics Office in their Earnings and Labour Costs Release published in March 2008. This release indicates that at Quarter 3 2007, there were 227,300 persons employed in the manufacturing sector which represents a small decrease of 700 on the numbers employed in the corresponding period in 2006. It is important to keep this in perspective both in terms of global economic conditions and the continued strength of the euro. Our manufacturing sector continues to perform strongly and 2007 represented a very good year with production growing by 7.5 per cent, the highest annual change since 2002.

Over the last number of years there has been churn in employment as is typical of a developed, open, and dynamic economy such as Ireland's. Ireland is no longer a low cost economy and manufacturers in particular are facing increased competition from producers in lower cost economies. Nevertheless Ireland continues to attract high value manufacturing activity as evidenced by recent announcements such as Zimmer, Green Isle Foods, Thermo King and others, to establish or expand their facilities in Ireland.

As part of the commitments included under the partnership agreement 'Towards 2016', I established the High-Level Manufacturing Group, to review the challenges facing the manufacturing sector and to identify further measures to meet those challenges. Earlier this month I launched the Group's report. The report contains some 27 recommendations directed at key areas of innovation and productivity leading to transformational change, reskilling and management development for the innovative firm, increasing awareness and take up of existing supports. In addition, the group recommend the establishment of a Manufacturing Forum to take responsibility to progress the implementation of the recommendations outlined in the report and to act as a strong advocate and champion for the manufacturing sector to ensure that manufacturing remains central to current and future industrial policy. Action on the Report and its recommendations will be considered by the Government and Social Partners as part of the review of Towards 2016.

The Programme for Government contains a range of commitments focussed on maintaining and enhancing our framework competitive conditions, and promoting new areas of competitive advantage, including developing our R&D base, investing in critical physical and communications infrastructures, and promoting tertiary education and lifelong learning. Over the period of the National Development Plan the Government will provide total investment of over €25bn with €8.2 billion on the Strategy for Science, Technology and Innovation (SSTI) 2006-2013 towards achieving our goal to become a leader in Research & Development and Innovation, €3.3bn investment specifically to support the development of the indigenous and FDI enterprise base and €13.7bn on skills development.