Bernard Durkan (Kildare North, Fine Gael)
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Question 142: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the extent of her job creation proposals for the future; if emphasis on the knowledge based economy is likely to ignore the need to generate growth in the manufacturing sector; if her attention has been drawn to the fact that other jurisdictions are more competitive in the manufacturing sectors, are more than likely to become more competitive in the knowledge based economic sectors in the future and that action is required to address these issues; the action she has taken in this regard; and if she will make a statement on the matter. [28011/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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The development of innovative products and services, underpinned by the effective and imaginative use of technology and new research, will be significant contributors to our economic success and job creation in the coming years. We have indeed been seeking, in our policy development and investment, to grow our innovation capacity to develop a knowledge economy. This will put the benefits and opportunities of science, technology and innovation at the heart of Irish economic and social development and grow our enterprise sector in a sustainable manner, thereby creating jobs and facilitate social advancement.

But this in no way diminishes the importance of manufacturing in our economy. The competitiveness model Ireland has to follow is one where innovation, talent and flexibility are our acknowledged core competencies and this is relevant for all industry sectors, including both our existing manufacturing base and for new investment in manufacturing that we continue to attract.

Under the Framework for Economic Renewal we are taking a number of measures across Government to improve our competitiveness. Cost competitiveness is a particular focus of action and we are already seeing results. Firstly, Irish inflation declined by 4.7 percent in the year to May 2009. We have also seen a decline in unit labour costs which has a direct effect on competitiveness. Other costs are on the way down also. The cost of energy which is a key cost for the manufacturing sector, has reduced by 10% in electricity prices and 12% in the price of gas. I will continue to work closely with my colleague the Minister for Communications, Energy and Natural Resources to ensure that we continue to exert downward pressure on energy costs.

Our policy measures for developing the knowledge economy are designed to translate knowledge into jobs and growth. This includes many horizontal policies, such as education and skills development, along with the development of framework conditions to encourage both technological and non-technological innovation. For the manufacturing sector, this encompasses a broad range of areas, whether it is assisting manufacturing companies to realise the full potential of information technology, to adopt new technologies or leading edge processes or supporting R&D in manufacturing operations.

Manufacturing will continue to play a valuable part in future economic success as was clearly demonstrated in the report of the High Level Group on Manufacturing. The recommendations contained in this Report are being advanced within the Framework for Economic Renewal to ensure that the manufacturing sector is further developed and well positioned for future growth. I would like to emphasise that, as stated in the Report, manufacturing is a key driver of innovation and technological advance.

Sustainable growth must be based on growing Ireland's manufacturing and services export base, and we are firmly focussed on providing a competitive environment and maintaining our reputation as a 'good place to do business'.