Bernard Durkan (Kildare North, Fine Gael)
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Question 99: To ask the Minister for Jobs, Enterprise and Innovation the extent to which an early-warning mechanism exists or has existed over the past five years whereby job relocation to more competitive jurisdictions could be addressed prior to the event; if specific issues have been identified and a resolution suggested or proposed; and if he will make a statement on the matter. [21133/12]

Richard Bruton (Dublin North Central, Fine Gael)
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It is an unfortunate reality that companies for a wide range of reasons find themselves in difficulty and early intervention is critically important. For this reason, the Enterprise Development agencies operate an early warning system, which has been in place for over ten years. When triggered, this mechanism brings the full capacity of the agency concerned to bear on whatever situation has arisen within the client company.

For example, when Enterprise Ireland is made aware of jobs at risk, it engages closely with those client companies reporting difficulties or potential job loses to determine what appropriate proactive measures can be put in place by the agency to prevent or minimise the job losses. When IDA Ireland becomes aware of a company's intention to either downsize or cease operating in Ireland, it works with the client company to safeguard and minimise the number of job losses through offering to help the companies to improve competitiveness; enhance their use of technology; grow the skills of their employees; engage in research, development and innovation or develop their business processes. Similarly, as soon as Shannon Development becomes aware of jobs at risk, it proactively engages with companies to offer whatever supports are available to minimise the impact as regards job losses.

There are many differing and complex factors that can influence a firm's decision to relocate in today's modern globalised economic environment. Companies change location 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 can result in jobs at the lower end of the value added scale being either phased out completely or relocated to lower cost locations.

The early warning system is kept under review so as to ensure that it is fit for purpose.