Micheál Martin (Cork South Central, Fianna Fail)

The economy is a remarkable success story. During the past decade we have achieved consistently higher economic growth rates than most developed countries. This is among the better-off countries in the European Union and the developed world. We also score well in international rankings of quality of life. The 2006 UN human development index ranks us in fourth position ahead of countries we have long admired such as Sweden, Canada, Switzerland, Finland and Japan. Our position in this index has increased by 14 places since 2004 based on Ireland's improving levels of wealth, health, life expectancy and education.

For each of the past three years Ireland's merchandise exports have recorded year-on-year increases of approximately 3% per annum. This has been achieved despite adverse conditions in many markets, including currency rate changes, and it follows a long-standing trend, albeit one that was interrupted briefly following the economic shock after 11 September 2001 and the dotcom bubble difficulties in the technology sector.

Ireland continues to have a healthy trade surplus. In 2005 this stood at €29 billion on merchandise trade. Statistics for services exports released recently show a healthy trend in the years 2003 to 2005, with a 14% increase between 2003 and 2004 and a 9% increase between 2004 and 2005. While final data on services exports for 2006 are not yet available, the indications are that the positive trend continued.

In recent years domestic demand, particularly for houses, has been an increasing driver of economic expansion and employment growth. While it is good news that we have the resources to address deficits in our housing, transport and broader social infrastructure, our economic prosperity depends on our ability to sell goods and services abroad. Ireland must offer a high quality, cost-competitive business environment. This is still a strong trading nation and the challenge facing us is to stimulate productivity and export growth and increase international market share as key policy objectives.

These are the issues that the National Competitiveness Council addresses in its latest report, Ireland's Competitiveness Challenge, which outlined policy recommendations across a range of areas. The Government is committed to acting on the recommendations of the council's report which are designed to stimulate productivity growth and improve our ability to sell goods and services abroad. For example, the national development plan proposes a wide range of investments that will improve productivity by removing infrastructural bottlenecks that increase costs. It will enhance the skills of graduates and people already in the labour market and create a more supportive environment for enterprises in developing new products and services. The strategy for science technology and innovation will drive research and development performance and underpin long-term competitiveness.

The Government recognises the need to stimulate productivity growth and improve our ability to sell goods and services abroad. A range of strategies are in place to assist in this regard. I am confident that we can build on our past achievements, while laying the pathways for growth and higher productivity.

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