Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 157: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the way she proposes to improve the competitiveness of the economy; and if she will make a statement on the matter. [45301/08]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 158: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the action she has taken to identify, isolate and address the most salient issues currently deemed to discourage investment in jobs here, such as the high cost base; her proposals to address this issue; and if she will make a statement on the matter. [45302/08]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 157 and 158 together.

Ireland is no longer a low cost economy and therefore we must seek to develop 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. While the economic environment is more challenging than we have seen for many years, we have the foundations in place for long-term economic growth through proactive policies such as the Strategy for Science Technology and Innovation, the National Skills Strategy and the National Development Plan. Ireland is well placed to tackle the challenges we are facing, with a strong base of modern industry, a highly skilled and flexible workforce and a pro-business culture.

Innovation and the productivity gains that flow from it are the foundations for maintaining competitiveness. Enhancing productivity growth is the cornerstone of our competitiveness. The Enterprise Development Agencies under my Department (SFI, EI, IDA and CCEBs) have a capital allocation of €495 million in 2009, which will be spent on productivity enhancing investments such as R&D, innovation, better use of ICT, and training and management development. In addition, part of our long term strategy for achieving productivity improvements is to enhance the skills of the Irish workforce, as set out in the National Skills Strategy.

In the shorter term, the next few years can be seen as a period of opportunity as we seek to re-situate ourselves in terms of our national competitiveness, and to place ourselves in the optimal position to benefit from the eventual upturn in the international economy as well as from our longer-term investments.

IDA Ireland has continued to be successful in attracting new investment to Ireland, even in the current economic climate. Since the beginning of November alone, it has made announcements which are expected to provide a total of 1,000 new jobs in a variety of sectors, across a range of skills (such as manufacturing, R&D and European Headquarters operations) and spread throughout the country.

We are working consistently and successfully to build Irish exports in world markets. For example, contracts worth €40 million in new export sales have been signed by Irish companies during the recent Enterprise Ireland trade mission which I led, to the United Arab Emirates.

In order to sustain and grow the manufacturing sector, Irish based manufacturing enterprises will be encouraged and assisted to continue the progression to high value added sectors and activities, and continue to increase productivity through investments in human capital, technology and innovation. I intend to establish shortly a new High Level Manufacturing Forum to progress the recommendations contained in the Manufacturing Report published last April and recently agreed by the Social Partners.

In the future, the major impetus for growth will come from expansion of our services sectors. Last September, I launched the report of the Services Strategy Group, "Catching the Wave: A Services Strategy for Ireland". Ireland is already the tenth highest exporter of services in the world. This report will guide the development of our services policies and strategy into the future, with a view to fully exploiting the opportunities that this sector presents. In particular, the strategy will focus on maximising the performance of companies that are already active on export markets, on encouraging companies that are currently only trading locally to expand their markets abroad, and on fostering a new breed of start-up services companies with exporting potential. My Department is working in conjunction with other Departments to progress the implementation of these recommendations.

While any job losses are regrettable, and are deeply distressing for those concerned, we must remember that we still have a historically high number of people at work today compared to a decade ago — over 2 million — and that we are still creating high-value jobs across the economy. Through our pro-enterprise policies, ongoing investment in critical infrastructure under the NDP, our low taxes on business and workers and our balanced regulatory regime, the government are committed to ensuring that we continue to build an environment for enterprise that remains among the most favourable in the world.