A high-level research group commissioned by the Government has found that manufacturing will continue to play an important role in the country's economic development, despite job losses in the sector in Galway and predictions to the contrary by many commentators.

In its report, launched last Wednesday, 2 April, the group said that partnership is crucial to the future of manufacturing in Ireland.

"Manufacturing will continue to play an important role in Ireland's economic development in the future, as it has done in the past," commented Joe Harford, Chairman of the High Level Group on Manufacturing at the launch of the group's report, which was presented to the Minister for Enterprise Trade and Employment Mr Micheál Martin TD.

However, the news may come as a surprise to Galway employers, who have seen a sharp decrease in the manufacturing sector. Many of the city's multinational companies have not been renewing contracts for unskilled manufacturing workers recently, with Thermo King last week letting go 100 employees.

According to reports last week, the corporation, a unit of Ingersoll Rand Ltd, confirmed to Galway West TD Padraic McCormack that 65 temporary workers will be laid off in the next fortnight, with a further 35 workers whose contracts are due to expire, also to be let go.

Thermo King, like other big Galway employers such as Medtronic and Boston Scientific, hires contract workers to meet demand at different intervals throughout the year. However, Medtronic has recently let go a substantial amount of contract employees, while Boston Scientific has reportedly instituted a hiring freeze.

In the report of the high-level group it was outlined that the Government had to play a part in underpinning the business environment, but the roles of employers and employees were also stressed.

"There is a need for coordinated and comprehensive action," said Mr Harford, "not only by Government in ensuring the business environment underpins the ongoing development of a sustainable manufacturing sector, but also by employers and employees if Ireland is to continue to be attractive for high-value manufacturing activities. The group has identified a limited, but essential number of recommendations and calls for the establishment of a Manufacturing Forum, under the auspices of the social partners, to drive implementation."

The Minister welcomed the report of the group and thanked its members for their contribution.

"Through the bringing together of the Social Partners in the High Level Group on Manufacturing we now have a shared understanding of the challenges facing the manufacturing sector and the actions needed by each party to build from the strong base we already have in Ireland" said Minister Martin "Action on the Report and its recommendations will beconsidered by the Government and Social Partners as part of the review of Towards 2016. which is due to commence shortly".

"I welcome the recommendation to continue this focus on collective action through the establishment of a Manufacturing Forum. We know what needs to be done and we each need to play our part in making it happen.

"Manufacturing does matter to Ireland's economy and will continue to matter as we move into the next decade," he continued.

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