Tommy Broughan (Dublin North East, Labour)
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Question 21: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of new jobs she expects to be created during 2008 in regard to manufacturing and to other sectors; the way these compare to figures for 2007; and if she will make a statement on the matter. [23928/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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Forecasting employment figures is a perilous business and subject to a variety of unforeseen, often extraneous, variables influencing estimates of that nature. However, I still expect employment growth — being the excess of jobs created over jobs lost — to continue in 2008, albeit at a slower pace than in previous years. In the Budget Outlook employment is forecast to grow by over 1% in 2008. The latest available employment data from CSO indicates that at Quarter Q1 2008 there were 53,700 additional people in employment compared with the corresponding period in 2007. When seasonal factors are taken into account there was an increase in employment of 6,200 in the first quarter of this year which is a testament to the resilience of our economy at a time of uncertainty in global economic conditions, the continued strength of the euro and the downturn in the construction sector.

The Irish economy is undergoing a certain amount of adjustment and while the rate of employment growth is expected to slow it must be viewed in the context of historically unprecedented numbers of people in work. Since 1997, over half a million new jobs have been created in Ireland and the number in employment now exceeds 2.1 million. In 2007 the Enterprise Development Agencies created 25,355 jobs across all sectors.

The model of manufacturing in developed economies 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. The services sector continues to provide significant new employment opportunities. Earlier this year, my predecessor in the Department of Enterprise, Trade and Employment launched the "Report of the High Level Group on Manufacturing". The Group's report contains 26 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. Innovation and the productivity gains that flow from it are the new foundations for competitiveness. Implementation of the Report of the High Level Group is being discussed with the social partners as part of the current review of the Partnership agreement "Towards 2016".

Recognising the increased importance of services worldwide, as well as the increased international tradability of services, Forfás established a dedicated Services Strategy Group whose report will be finalised shortly. From the work of this group we intend to prepare and position Irish enterprise to adapt to the globalisation of services with the aim of achieving sustainable and competitive services enterprise in Ireland.

Competition for foreign direct investment (FDI) continues to be 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. The pipeline of new business for which IDA Ireland is competing is as strong as at any time in recent years and we remain confident that Ireland is well placed to secure significant investment during 2008 and beyond from key target sectors such as Pharmaceuticals, Biopharma, Medical Technologies and Information and Communications Technology.

Looking to the future, neither the Government nor my Department are complacent regarding the varied challenges facing the country's economy. One of our 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, in line with the NDP and the Programme for Government.