Bernard Durkan (Kildare North, Fine Gael)
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186. To ask the Minister for Trade, Enterprise and Employment the extent to which he and his Department have examined the manufacturing and services sectors with a view to identification of the extent to which each has suffered as a result of circumstances outside their control; his plans for specific supports or incentives in the future having particular regard to Brexit, Covid-19 or other such issues; and if he will make a statement on the matter. [35404/20]

Leo Varadkar (Dublin West, Fine Gael)
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While the majority of manufacturing and supply chains remain open as essential services, the sector faces ongoing challenges of capacity constraints, reduced demand and supply chain disruption. Given its export intensity, the manufacturing sector is very reliant on international trade flows and functioning global supply chains and on recovery in EU and global markets. Wider external economic and policy developments will also affect prospects for the sector and there is a longer-term risk of countries seeking to repatriate their supply chains to avoid the risk of future pandemic related disruption.

Manufacturing has a significant vulnerability in terms of international competition and, for multinationals, intra-corporate competition. Connectivity is crucial and the sector is emphasising the need for a system allowing international travel at the earliest opportunity.

Supporting digital transformation of the manufacturing sector and its supply chain under Ireland’s Industry 4.0 Strategy will underpin the competitiveness of the manufacturing base into the future to support recovery and drive productivity.

The services sector is broad and spans multiple subsectors. Broadly the internationally traded services sectors, including financial and business services sectors have remained relatively stable with the vast majority of companies effectively transitioning to remote working. Others, including aviation and locally traded services sectors that require close proximity with customers including hospitality and food services as well as personal services, remain more vulnerable to the impact of restrictions.

Pandemic Unemployment Payment data indicates that services sectors dependent on close proximity remain most impacted. Hospitality, retail and administrative and support services, accounted for 54% of PUP claimants as of November 3rd. Employment Wage Subsidy Scheme (EWSS) data also shows the high impact on hospitality and retail, with 30% and 11% respectively of employments supported by the scheme from those sectors. EWSS data also highlights an ongoing impact on manufacturing at 8% of supported employments.

In the near term, the Covid Restrictions Support Scheme announced as part of Budget 2021 will allow us to provide targeted support for those sectors and businesses that are impacted by health restrictions. Looking further ahead, the National Economic Plan currently being developed will set out the Government’s guiding priorities and policy objectives for a sustainable recovery, restoring employment and supporting the longer-term capacity and reorientation of our economy with an integrated and multi-sectoral coordinated approach taking account of the pandemic, Brexit and broader trends.