Bernard Durkan (Kildare North, Fine Gael)
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Question 108: To ask the Minister for Enterprise, Trade and Innovation the steps he has taken or will take to ensure balanced economic development with the retention of the maximum number of manufacturing and or services jobs and the utilisation of the knowledge based economic sector to maximise employment prospects; and if he will make a statement on the matter. [19674/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Future sustainable economic growth will be based on a thriving Irish export sector characterised by innovative companies. Exports are critical both to maintaining current jobs and driving future job creation. The Government, with the assistance of Enterprise Ireland, has worked hard, not just to ensure companies survive the recession, but also to position them so they can seize the export opportunities that the tentative recovery in major economies will present.

To this end, the Enterprise Stabilisation Fund was announced by Government in April 2009. By the end of April this year, 197 projects from 193 companies had been approved a total of €72m. 1,696 companies were supported under the Government's Employment Subsidy Scheme and a total of €133.5 million towards 15,272 subsidies has been approved to these companies. The companies in turn have committed to maintain 103,977 jobs to the end of November this year.

Enterprise Ireland continues to work with companies in overseas markets both to consolidate their business and help them seize new opportunities in the Eurozone and growth markets such as China. In addition, the agency is driving in-company R&D projects, typically focused on near-to-market development. Such innovation will focus on driving "new to firm" and "new to market" products and services which will drive the attainment of exports as global markets recover. This in turn will lead to job growth.

Manufacturing is the bedrock on which the growth in Ireland's FDI was founded. Historically, it has been a significant segment of investment and it will continue to remain so into the future. The Hi-Tech manufacturing sector will be characterised by increased international competition and enhanced output volumes due to investments in technology and automation. Globally, manufacturing jobs, as a percentage of total employment, will continue to decrease even in lower cost locations. Mirroring the rest of our economy, manufacturing is also in transition. Higher technological investment and higher value products will be the hallmark of future manufacturing operations in Ireland. These operations will be knowledge, capital and skills intensive characterised by a participative innovative culture where management and staff continuously collaborate to drive innovation, productivity, agility, learning and adaptability.

In order to accelerate these changes, IDA Ireland, in conjunction with Enterprise Ireland, is supporting an industry consortium approach on a range of applied research initiatives under the new Competence Centre programme envisaged in the Strategy for Science Technology and Innovation (SSTI). A broad range of topics are being evaluated for potential funding.

Pharmaceuticals and Biotechnology continue to offer the best opportunities for new name and existing manufacturing investments because of the need to protect Intellectual Property Rights (IPR), meet regulatory requirements, the capital intensity of facilities, the relative high value and profitability of products, and high level skill sets. This when combined with Ireland's tax regime, track record in large scale facility construction and operation and the relevant skill base makes for a competitive value proposition.

Despite difficult economic times, it is important to recognise that Ireland continues to develop into a "Smart Economy". Within this ambition, foreign owned companies play a hugely significant role. They remain a critical element in portraying Ireland as a leading international location for innovation and investment and this is endorsed by their continuing commitment to invest in Ireland during the economic downturn. While it is clear that we are operating in a very difficult economic environment, there are still investment opportunities in global markets and IDA will continue to compete vigorously for projects for Ireland. To date in 2010 there have been 29 IDA Announcements with the potential to create in excess of 1,600 jobs.