Brian Lenihan Jnr (Dublin West, Fianna Fail)

Restoring Competitiveness Our economy must return to being driven by sustainable export-led growth, rather than by domestic demand. To do so our price and cost structure must fall relative to our trading partners. Private sector wages need to adjust and are adjusting. I hear examples every day of companies and employees reducing costs and changing work practices in order to safeguard employment. It is this flexibility that will restore our competitiveness and provide the basis for future prosperity. With the introduction of the pension levy, the public sector has also lowered its costs but much more is required in terms of changing work practices and driving efficiencies.

One of the main drivers of growth in output and employment in Ireland from the middle of the 1990s was flexibility and adaptability in the labour market. The willingness of employees to embrace change allowed a rapid re-allocation of skills, expertise and knowledge to expanding economic sectors. Looking to the future, we must recreate the same commitment to embrace change in the public service no less than in private enterprises.

As Minister for Finance, I must allocate and redeploy staff in the Civil Service to areas of highest priority. I have already made additional staff available to the Department of Social and Family Affairs to meet the needs of the growing numbers on the live register. I will use the same powers to redeploy staff to other priority areas in the future. We must ensure that the redeployment of staff will be done with due consideration to geographical constraints and is consistent and fair in its implementation. I know that all those employed in the public service share the common goal of delivering excellent services.

We must also reduce costs in regulated sectors where we can. The Government expects to see reductions of about 10% in energy costs for electricity and gas consumers by September. The Minister for Communications, Energy and Natural Resources will be seeking ways to lower costs further on an ongoing basis.

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