John O'Mahony (Mayo, Fine Gael)
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Question 57: To ask the Minister for Enterprise, Trade and Innovation the steps he will take to prevent further job relocation to lower wage economies; if an evaluation has been done with a view to identification of particular manufacturing areas expected to be vulnerable to relocation; and if he will make a statement on the matter. [22526/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The relocation of businesses within particular types of industry is a reality of modern global manufacturing for a highly developed economy such as Ireland. There are many factors which influence a firm's decision to relocate. Firms adjust their plant location and utilisation strategies to address matters such as accessing new markets, moving production nearer to customers, meeting firm or market specific customer relationship issues, accessing technology or other competitive considerations. The result is flows of investment and employment across borders. For much of the last decade this type of job "churn" has been positive for Ireland, with companies replacing lower value activities with activities of higher value, resulting in better paid, more highly skilled jobs.

It is not possible to project the extent to which job losses may arise due to firms locating abroad as the decision to relocate is due to many factors, some of which I have already outlined. As a small, open, export led economy, our best response to the realities of globalisation is to ensure that Ireland remains attractive for investment and enterprise growth. Our enterprise support policies have consistently evolved to meet the needs of both foreign direct investment (FDI) and growth–orientated indigenous firms. These policies have enabled us to win many prestigious and value added investments, and have enabled us to replace lost jobs with others of equal or higher value in the economy.

However, there can be no denying that current operating conditions for companies are difficult and challenging due to a number of factors, including global uncertainty in banking and finance, tough competition and the global recession. Some issues are outside the control of Government. Nevertheless, this government has been focussing on the priorities of business, such as energy and labour costs, together with the separate issue of credit availability. We have ensured that Ireland can offer the skills, education, research and innovation capabilities that modern mobile and indigenous firms need to be competitive in world markets. These, combined with a "can do" attitude, an attractive living and business environment, and an active and growing R&D base, will ensure that Ireland remains a location of choice for investment.