Bernard Durkan (Kildare North, Fine Gael)
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Question 117: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the efforts she has made or proposes to make to stem the flow of manufacturing and service jobs from Ireland to other European and non-European locations; and if she will make a statement on the matter. [6571/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 118: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that some economic analysts have concluded that Ireland can no longer compete for jobs in the manufacturing sector, and that this can be a prelude to conceding ability to compete in the service areas also; if she has taken steps or proposes to take action to make efforts to restore competitiveness in both sectors at an early date; and if she will make a statement on the matter. [6572/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 119: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason manufacturing and service jobs are being relocated overseas; if she has taken action or proposes to take action to address the contributory causes with a view to reversing this trend; and if she will make a statement on the matter. [6573/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 117 to 119, inclusive, together.

There are a variety of differing and complex factors which might influence decisions to relocate all or part of a firm's functions. These factors include business model changes, declining market share, rationalisation of global sites, lack of new products, consolidation due to excess capacity arising from mergers and acquisitions or cost pressures where Ireland may no longer be competitive for certain activities due to the increasing pace of globalisation and competition from low cost economies.

The Irish economy is now one of the most globalised in the world. As a consequence, the uncertainty created by the current international financial crisis has had a significant impact on our economy. Our comparative advantage will increasingly lie in the production of knowledge-intensive goods and services. With that in mind, a range of policies are being pursued to enhance competitiveness and improve the business environment for both manufacturing and services.

Maintaining the competitiveness of the enterprise sector in Ireland is a priority issue for my Department and our development agencies. 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.

The "Report of the High Level Group on Manufacturing", launched in 2008, identified the focused actions needed by employers, employees and Government to respond to challenges and take advantage of opportunities to further develop the sector in Ireland. The report sets out a number of recommendations directed at key areas of innovation and productivity leading to transformational change, reskilling and management development for the innovative firm, and increasing awareness and take up of existing supports. The Social Partners agreed, as part of the 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.

We continue to be one of the world's leading service exporting countries. Over the next ten years, services will be one of the key drivers of Ireland's economic success and job creation. The report of the Services Strategy Group, "Catching the Wave: A Services Strategy for Ireland", sets out new policy proposals on how we can ensure the continued development and growth of Ireland's services sector and outlines how to maximise the future returns to the country from services activities in all enterprises, both current and potential. Implementation of the recommendations of the Services Strategy Group — some of which are already being acted on by the Enterprise Agencies — will enable Irish service companies to exploit new and exciting opportunities, such as eLearning, business and financial services, professional and consultancy services and others.

I am determined to maintain and improve our focus on developing indigenous industry, where we are working consistently and successfully to build Irish exports in world markets. The newly established €60m Growth Fund is designed to assist Enterprise Ireland's small to medium sized clients achieve greater competitiveness by improving their export potential. This will be achieved by increasing gross output and productivity whilst also maintaining existing employment levels in clients throughout all counties. I recently launched Enterprise Ireland's strategy for the internationalisation of Ireland's services sector, which the agency estimates could yield up to €1.14bn in new export sales for Ireland by 2010, and a doubling of exports sales in this sector to €5.25bn by 2015. I also announced Enterprise Ireland's "Going Global Fund" — a €3m government fund specifically aimed at locally traded companies that have successfully established businesses in Ireland and wish to explore opportunities to sell abroad.

The government is committed to ensuring that we continue to create an environment for enterprise that remains among the most favourable in the world and which will position us for long term economic growth through the adoption of this series of proactive policies and strategies that best serve the interests of the manufacturing and services sectors.