Micheál Martin (Cork South Central, Fianna Fail)

We are aware of the energy issue. That is why the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, produced a Green Paper on energy and has brought in a number of initiatives in that area. Our main energy problem is our high dependence on fossil fuels. I am on a Cabinet sub-committee on the issue.

We are concerned on an ongoing basis about energy prices and its effect on our competitiveness. That is not news. It is interesting that regional areas such as Cork, Limerick and Galway are quite competitive on labour costs in relation to the EU 15 and the US cities. Ireland is not in the same cost frame as Bangalore, for example, nor should we expect to be. However, the report states that compared to other cities in the EU 15 and the United States, Irish wage costs are almost 20% lower. We have cost competitive advantages in some areas. Deputy Hogan has identified areas in which we have cost competitive pressures and challenges, particularly in utilities, and I am not arguing against that point.

Overall, the report suggests that labour is the dominant cost while utilities comprise approximately 9%. Nonetheless, the cost of utilities is a key agenda item for Government. Our construction industry and property market have had unprecedented scale and pace of growth. Every economic analyst has made different predictions about this for years, but they have not happened. It reflects, as one economist recently said, a robust employment situation. People have bought houses because we have unprecedented employment levels. Utility costs are an ongoing issue, particularly waste disposal, energy and mobile communication charges, and we will continue to work on making those more competitive.

Ireland is significantly more cost competitive on transport than the most expensive locations throughout the world. It is a balance. We are doing very well in some areas and not so well in others. Based on any international benchmark, however, the overall picture suggests Ireland is doing very well in competitiveness terms, but that is not a reason to be complacent.

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