Bernard Durkan (Kildare North, Fine Gael)
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Question 54: To ask the Minister for Jobs, Enterprise and Innovation the extent to which he continues to monitor the reasons for relocation to more competitive economies by various manufacturers or service providers in the communications sector over the past five years and to date in 2011; the extent to which positive intervention will be made to address any issues arising; and if he will make a statement on the matter. [30435/11]

Richard Bruton (Dublin North Central, Fine Gael)
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There are many differing and complex factors that can influence a firm's decision to relocate in today's modern globalised economic environment. Companies adjust their plant locations and utilisation strategies to address matters such as accessing new markets, moving production nearer to customers, meeting firm or market specific customer relationship issues, in addition to business takeovers and consolidations.

Recent jobs losses which have occurred in the FDI sector in Ireland are largely the result of the continuing restructuring process that is ongoing in Ireland and other developed economies, driven by competitive pressures and technological change. This results in jobs at the lower end of the value added scale being either phased out completely or relocated to lower cost locations.

An analysis of closures in the IDA portfolio of companies over the period 2005-2010 shows that the majority of the closures were in areas such as Metals and Engineering, Print and Packaging, Textiles, and Plastics and Rubber. The remainder of closures were spread across more vulnerable parts of sub sectors that are growing overall, such as ICT, International services, and Chemicals. In many instances, it is not possible to distinguish between jobs that are made redundant as a result of technological change and those that relocate to lower cost locations.

IDA's strategy "Horizon 2020" is focussed on winning as many new jobs as possible each year and giving equal priority to maintaining existing jobs. On a daily basis, the IDA is working with its clients, making every effort to retain their operations in Ireland and minimising job losses. The IDA continues to play a key role in both encouraging and assisting its client companies to move up the value chain in terms of carrying out higher skilled operations and expanding their presence in Ireland. The IDA's aim is to retain existing clients, improve the quality of employment opportunities in Ireland and increase the positive economic impact.

The IDA actively encourages its clients to engage in transformation initiatives, and is assisting them in programmes to :-

- improve company-wide competitiveness

- enhance the use of new technologies

- grow the skills of the business

- engage in Research, Development and Innovation

- develop new business process, and make company operations more energy efficient.

For much of the last decade, company relocation has been positive overall for Ireland. The IDA has continued to attract and retain high value investments from leading global corporations. The combined influence of Ireland's improving competitiveness, our commitment to maintaining our 12.5% corporate tax rate, the development of our national infrastructure, the Government's investment in science, technology and innovation, and our strong skills base has been instrumental in this regard, and will continue to attract and increase the level of inward investment in Ireland. To date in 2011, the IDA has announced investment decisions which will create over 4,500 jobs in the Irish economy as the investments come on stream.

IDA's focus will continue to be on high end manufacturing, global services and RD&I across a wide range of sectors. In particular ICT, Digital Media, International Financial Services, Internationally Traded Services, Life Sciences and Clean Tech are poised for further growth.