Tony Killeen (Clare, Fianna Fail)

I welcome last month's publication of the National Competitiveness Council's 2004 annual competitiveness and competitiveness challenge reports. The key findings of the reports are that the economic environment for 2004 has been encouraging, significant improvements have been recorded in GNP growth and employment, there has been a reduction in the unemployment rate and foreign direct investment, business confidence and industrial output have recovered strongly.

The council makes a number of recommendations, which are necessary to sustain Ireland's competitiveness, in respect of matters such as the business and work environment, economic and technological infrastructure, education and skills, enterprise and enterprise development and innovation and creativity. The council recommends that Ireland should improve its cost base by removing barriers to competition in key parts of the economy, such as the retail, pharmaceutical, transport and energy sectors. It raises the possibility of the use of fiscal policy to promote economic stability and emphasises the need to make the social partnership process more sensitive to developments in international competitiveness.

Market forces are the best determinant of prices. A robust competition regime and an informed consumer are essential if the market is to work properly. The Government has shown its commitment in such areas. It has strengthened the powers and resources of the Competition Authority, taken determined action to introduce regulatory reform in the insurance sector and established a consumer strategy group to advise on the development of a national consumer policy. The Competition Authority is undertaking reviews of certain building, legal, medical and construction professions to address competition issues in sheltered sectors of the economy. Sustaining competitiveness, including cost competitiveness, will continue to be a high priority for the Government.

See this speech in context