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

Question 163: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs relocated from County Kildare to more competitive economies in the 12 months to date and the previous five years; and if she will make a statement on the matter. [45307/08]

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

There are many factors apart from costs that influence a firm's decision to relocate, therefore, it is not possible to determine the number of jobs which may have been lost to lower cost economies. Decisions to relocate companies or elements of their supply chain are a reality of the modern globalised economic environment. Companies adjust their plant location and utilisation strategies to address matters such as accessing new markets, moving production nearer to customers, meeting firm or market specific customer relationship issues, accessing technology, in addition to business takeovers and consolidations. Such decisions inevitably result in flows of investment and employment across borders. In the main, Ireland successfully manages this process, through our policies on enterprise and foreign direct investment. These policies, such as competitive tax rates, investment in skills, education and R&D and investing in critical physical and communications infrastructure, have positioned us to win many prestigious and high value added investments.

Ireland has not been a low cost economy for some time now, and manufacturers in particular have been facing increased competition from producers in lower cost economies. 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. The model of manufacturing in developed economies has changed and Irish enterprises are adapting to those changes and engaging in higher value added activities in order to compete in the global marketplace. Irish based manufacturing enterprises will have to continue the progression to high value added sectors and activities, and to increase productivity through investments in people, technology and innovation. Innovation, and the productivity gains that flow from it are the new foundations for competitiveness.

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. The pipeline of new business for which IDA Ireland is competing is strong.

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, 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 consequently less likely to move, on the basis of simple cost influences.