Bernard Durkan (Kildare North, Fine Gael)
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Question 74: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps taken to address the issue of competitiveness in the economy in both the manufacturing and service sectors in each of the past eight years to date in 2009; the results of such measures; and if she will make a statement on the matter. [12735/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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Sustaining Ireland's competitiveness continues to be a key priority for this Government. It is monitored in particular through the work and advice of the National Competitiveness Council. Their work is a very important part of regular short and medium term analysis of what our economy requires to stay competitive. The National Development Plan 2006-2013 underpins competitiveness by improving our infrastructure stock and putting in place advanced capital programmes for our future needs. Of the numerous steps taken to enhance competitiveness since 2001, I would like to highlight some introduced by my department, in particular:

The establishment of Science Foundation Ireland in 2000.

The implementation of the Enterprise Strategy Group's "Ahead of the Curve" Report, published in 2005, by the Enterprise Advisory Group.

The Enterprise Agencies have led an ambitious and strategic programme of funding and support measures for both indigenous enterprise and foreign direct investment.

The National Skills Strategy, published in 2006.

Implementation of the Report of the Small Business Forum, published in 2006.

The IFSC Strategy document, "Building on Success" launched in September 2006, to support the future development of the international financial services industry in Ireland.

The continuing implementation of the Strategy for Science, Technology and Innovation, launched in 2006.

The High Level Group on Manufacturing was established in 2007

Ongoing implementation of The Services Strategy, launched in 2008

Further details of strategies are included in my Department's Annual Reports.

To offset the competitive threat from lower wage economies, in recent years my department has implemented a series of policies to encourage a move to higher productivity levels and the production of higher value added goods and services. Maintaining our low rate of corporation tax, has been of particular value in attracting Foreign Direct Investment.

In common with many other developed economies, we continue to invest in the "knowledge economy". Over the past ten years we have reshaped the infrastructure for research and innovation with strong investment in centres of research excellence, enterprise incubators in universities and many new programmes to help ordinary firms commercialise new ideas. Our policies have led economic activity into new areas, opening up new and sustainable sources of competitive advantage such as life sciences, biotechnology, services and related research, development and innovation. That commitment has delivered successes in terms of our international reputation and our ability to compete for internationally mobile research-related investment.

Our long-term commitment to investing in and supporting science will, I am confident, bring an additional dimension to our competitiveness as well as taking us to a new level of innovation and entrepreneurial activity.

Bernard Durkan (Kildare North, Fine Gael)
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Question 75: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the measures or incentives she has in mind to address the issues regarding competitiveness in the manufacturing and service areas of the economy; and if she will make a statement on the matter. [12742/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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Under the Framework for Economic Renewal we are taking a number of measures across Government to address competitiveness objectives. A key element of the Government's current strategy to develop the enterprise sector is to encourage increased levels of investment in research, using more technology in product development and encouraging more innovation. "Building Ireland's Smart Economy" sets a clear agenda to help manage this change.

I believe that our economic prosperity exists to a significant degree on our capability to build 'high tech' — 'high value' businesses that can compete successfully from an early stage in global markets. In order to be competitive and to increase exports, Irish companies must focus on improving productivity, investing in research and continue applying innovative solutions to every facet of their business process. I believe that our success in stimulating business to do more R&D will be a key determinant of our future economic well-being. Our development agencies are assisting companies to this end. Agencies are also focused on helping companies to identify and drive down costs to sustain existing jobs and generate new employment and economic growth for Ireland.

Implementation of the recommendations of the High Level Group on Manufacturing will strengthen the manufacturing sector to maximise their potential and exploit new opportunities. I will shortly be announcing the membership of the Manufacturing Forum who will oversee implementation of these recommendations.

Our competitiveness priorities also include a strong focus on skills, education and training. Lifelong education fundamentally supports advances in productivity, upon which our competitiveness depends. I will shortly be announcing an implementation plan for the National Skills Strategy.

We are committed to support the development of environmental technologies in Ireland in order to achieve a win-win situation of improved competitiveness and environmental performance. Emerging sectors such as Environmental Products and Services have significant potential and will be targeted. Both IDA and Enterprise Ireland have recently established an internal team to identify enterprise opportunities for Ireland in the newly emerging clean /green sectors.

We know that services innovation is as vital as technological innovation as a key driver of performance. We are committed to assist business in realising their potential for non-technological innovation through the development of new business models, customer-interfaces and service-products, as an invaluable source of business, as well as, national competitiveness. We want to successfully reach those services companies that traditional RTD innovation policy has not. Ongoing implementation of the Services Strategy will be important in this respect.

Our investment in R&D places the higher education system at the forefront of Ireland's economic development strategy for the coming years. Science Foundation Ireland is working on developing initiatives to forge closer links between Ireland's higher education institutes and industry to drive the R& D agenda. I believe it essential that we continue to maintain the best possible conditions across all policy spheres for supporting and sustaining innovation.