Industrial strategy and employment priorities
Brennan challenged the focus on value-added output over jobs, citing manufacturing unemployment. Bruton said sustainable employment remained the Government’s primary objective and that he had urged the IDA to prioritise it.
asked the Minister for Industry, Trade, Commerce and Tourism if he is in favour of industrial strategy based on maximising output rather than employment.
Comment on this
Paragraph 1.9 of the White Paper on Industrial Policy sets out clearly the objectives of the Government's industrial policy. The first objective is to create and maintain the maximum number of sustainable jobs, as many as possible of them high-skilled, in manufacturing and international services industries.
This is, and will continue to be, the primary objective of Government policy of which, however, another important aspect is increasing the output of manufacturing industry and ensuring that the value-added content of this output growth be maximised.
Comment on this
Will the Minister accept that the IDA are now engaged in applying that plan by focusing on value-added industries in the first instance and assuming that downstream industries will be created from there? Will he agree that that is their way of tackling the unemployment issue? Will the Minister accept that the strategy has changed in the past year or so and that the emphasis is now on maximising output rather than maximising the employment content of any industry?
Comment on this
The IDA's strategic plan was prepared before the Government's White Paper on Industrial Policy was set out. It did contain an emphasis on value added. However, the White Paper clearly set targets for the achievement of employment as a primary objective, to which added value would be a subsidiary. Since the publication of the White Paper I have availed of every opportunity to impress upon the IDA that these employment objectives must have paramount importance. I have been in written as well as oral communication with the IDA to that effect and have asked them to prepare sectoral strategies indicating how they propose to achieve those employment objectives.
Comment on this
When bringing this to the attention of the IDA, would the Minister draw their attention particularly to the fact that 21 per cent of the labour force in manufacturing industry are unemployed?