Arthur Morgan (Louth, Sinn Fein)
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Question 81: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the measures being taken to tackle the deterioration of Irish manufacturing exports. [44918/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The economic growth that Ireland has experienced for more than a decade was built on the co-operation, collaboration and hard work of businesses, citizens and government with the core objective of increased prosperity for all. In this time, Ireland faced a number of critical economic challenges and successfully overcame them while becoming one of the world's most open economies.

The Irish owned enterprise sector has proven itself to be capable of, and critical to, meeting such challenges head-on by adapting, improving and focusing efforts on securing long-term success. Enterprise Ireland, the agency with responsibility for the development of manufacturing and internationally traded services, continues to drive this agenda of meeting current and future economic challenges by supporting the overall development of Irish companies.

The export figures for Enterprise Ireland client companies supports this view. From 2005 to 2007 the agency set itself the target of increasing exports in client companies by €3 billion, and it exceeded this target by over €1 billion in the period. Of course, the global economic downturn will affect exports in 2008 but Enterprise Ireland has been striving to its utmost to ensure the impact is minimised.

Today, it is evident that the Irish enterprise sector faces a difficult international climate, making it imperative that it bolster its competitiveness, focus its investment and generate innovative solutions in the face of testing economic conditions.

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 human capital, technology and innovation. Innovation, and the productivity gains that flow from it are the new foundations for competitiveness.

Enterprise Ireland provides a broad suite of programmes to assist companies adapt and grow by focusing on internationalisation, competitiveness, entrepreneurship, innovation, R&D, business infrastructure and engagement with third level education.

For example, a significant element of Enterprise Ireland's Financial Offer is the Growth Fund which supports Enterprise Ireland SME clients taking on an innovative market-led development plan to increase sales and develop exports through improving their productivity and competitiveness. Funding is available to support a range of activities including capital investment, recruitment of key managers and management development and staff training.

Productivity and management capability improvements are also essential in helping Irish manufacturing companies to reach the standards needed to successfully compete in the global market place. The Enterprise Ireland Productivity Fund provides assistance to help SME client companies achieve greater competitiveness by increasing their export potential.

Apart from the activity of Enterprise Ireland, the Social Partners agreed, as part of the recently concluded review of "Towards 2016", that a Manufacturing Forum should be established, in line with the recommendations of the High Level Group on Manufacturing. This matter is currently being progressed by my Department in consultation with the Department of An Taoiseach and the Social Partners.