Jimmy Devins (Sligo-North Leitrim, Fianna Fail)

I welcome the opportunity to restate our economic priorities which have helped make Ireland one of the wealthiest nations in Europe, enabled us to ride out a downturn already this decade and left us well positioned to maintain respectable growth rates during the current economic turbulence.

Maintaining the capacity of the economy to consistently generate new employment opportunities requiring higher skills and providing higher rewards is a key policy of this Government. Our policies have a strong competitiveness focus. On our overall competitiveness, Ireland stands out in a number of important categories. The UN ranked Ireland fourth in the OECD 28 for quality of life in 2007. The Centre for European Reform ranks Ireland sixth in the EU 27 for overall competitiveness in 2008. WTO data show that Ireland is the 12th largest exporter of commercial services in the world.

This Government is emphasizing the correct economic priorities. Seeking low inflation, promoting competition, pursuing a sensible incomes policy and keeping public spending growth at sustainable levels in the medium term are all important factors. Doing this will allow us to keep the burden of taxation low, maintain competitiveness and maximise our economic potential. These are all part of the Government's strategy, improving the cost environment and enhancing competitiveness. It is imperative to ensure labour costs are intrinsically linked to ensuring productivity, thereby supporting employment creation and safeguarding competition.

Regarding international price competitiveness, because much of Ireland's trade is outside the eurozone, our enterprise development agencies are providing specialised assistance to Irish exporters to focus on developing into the eurozone and emerging markets to win new export sales. Our export promotion policies are exerting a direct and positive influence on the ability of Irish exporters to grow their overseas business. Active measures are also being taken to improve the capabilities of indigenous firms in meeting global competition by greater investment in innovation and other value enhancing activities. Becoming more innovation-intensive on the basis of a clear market and customer focus leads to products and services that are better able to withstand purely cost-based competitive pressures.

Cost competitiveness is a key component of the work of the Competition Authority from its enforcement and merger reviews through to much of its advocacy work. The authority has completed a number of important studies of competition in areas such as banking, insurance, including private health insurance, professional services and public transport, all of which have instituted much-needed reforms in these sectors. Strengthened resources and a firm mandate for the Competition Authority are helping deliver more competition in the economy, particularly as the authority's investigation activities begin to make an impact on sectors where competition is not as keen as required by a modern economy.

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