Finian McGrath (Dublin North Central, Independent)
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Question 477: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will support a matter (details supplied). [26879/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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Overall, Ireland has performed very strongly over the last number of 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.

While I very much regret the decision of Hibernian Insurance to move jobs from Ireland, the relocation, or off-shoring, of some business functions and with it a certain number of jobs, is a reality of the modern global economic environment for a highly developed economy such as Ireland. This shift in the structure of international trade poses challenges to economic policy makers in all developed countries not just Ireland.

Many of the job losses incurred as a result of relocation in recent years were situated in lower-value added activities and these losses have been more than offset by jobs created in higher-value added manufacturing and the financial and international services sectors. Job losses are always regrettable, and neither the Government nor I ever dismiss the singularity of the impact at a personal and community level, resulting from company closures or relocation and their attendant job losses and the full range of services and assistance provided by the agencies are being made available to the workers affected. I understand that the relocation proposed by this company is part of a greater outsourcing exercise on the part of the parent company Aviva.

It must be remembered that Ireland also experiences the benefits resulting from globalisation as new markets and business opportunities open up for Irish companies. The level of foreign direct investment in Ireland, relative to the size of the economy, remains one of the highest in the world. While competition from emerging markets for FDI has intensified, Ireland continues to punch above its weight when it comes to attracting overseas investment. While our relative costs are now higher, we have responded nationally to a changing environment by positioning ourselves as the location for more advanced activities, with more qualified and better paying jobs.

One of my Department'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. 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.

In 2007, Forfás established a group to look at the challenges and opportunities faced by the services sector. 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. A report outlining how to maximise the future returns to Ireland from services activities in all enterprises, both current and potential, is due to be completed shortly.

We will continue to pursue policies to promote lifelong learning and up-skilling to improve labour market flexibility and, where necessary, ensure that appropriate training supports are provided for workers in sectors that are no longer competitive, should they need to find alternative employment. Investment in our people and ensuring that they have the skills required to live and work in the global knowledge economy is at the heart of the Government's strategy to progress towards a knowledge economy and society. 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.