Written answers

Thursday, 21 February 2013

Department of Jobs, Enterprise and Innovation

Industrial Development

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation the action he will take to boost the traditional manufacturing sector here; and if he will make a statement on the matter. [9079/13]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation the measures he will put in place to help the traditional manufacturing sector here; and if he will make a statement on the matter. [9093/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 37 and 51 together.

Employment in the manufacturing sector suffered a major shock between 2008 and 2010 when approximately 50,000 jobs were lost in the sector. However, numbers have stabilised over the last two years. Some 205,700 people are now directly employed in manufacturing, full-time and part-time, and a similar number of people are employed indirectly. There was a 2.8% increase in manufacturing output in 2012 over 2011. It is noteworthy that exports of manufactured goods are continuing to rise despite challenges in many of our key markets. Final 2012 export data published by the Central Statistics Office last week showed that goods exports increased by 1% over 2011, reaching a total of €92 billion, which was the highest figure since 2002. To promote job opportunities in this sector, the Action Plan for Jobs 2012 included several specific initiatives to develop the sector. Further measures to drive and develop manufacturing will be contained in the 2013 Action Plan for Jobs, which I recently finalised on behalf of the Government and will be published in the coming days. The Manufacturing Development Forum, which I established last year, has provided valuable insights. I have asked Forfás to develop a new Strategy for Manufacturing up to 2020 and this study is being finalised. A new report on the skills needs of the sector, which is also being finalised at present, will be a key driver in pursing those specific needs. While manufacturing has been an important sector in Ireland since the 1960s, there has been a noticeable decline in numbers employed in the sector. This is not necessarily surprising, as it echoes what has been happening in most developed economies. A similar trend has been experienced in other industrialised countries such as Germany, the UK, the US, Netherlands and Korea. Arising from greater globalisation, reduction of tariff barriers and the ease of transporting goods, it is clear that the nature of industry and the location of specialisations will be change. There will be an inevitable movement of production of lower cost, less specialised goods towards cheaper labour economies, e.g. in Asia. This is part of a wider global pattern. Despite the considerable challenges in an internationally competitive environment, there is considerable potential for the manufacturing sector in Ireland, as we are strongly placed to create opportunities and employment in many higher-value subsectors, for example chemicals, pharmaceuticals, medical devices and food, among others.

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