Billy Kelleher (Cork North Central, Fianna Fail)

I welcome the opportunity to address the House this evening and wish specifically to mention the vital role of costs in restoring competitiveness to the Irish economy and the broader actions the Government is taking to help the enterprise sector at this time.

Let me begin by assuring the House that the Government is committed to driving down business costs at this critical time and that it views the control of such costs as vital to restoring competitiveness to the economy. The motion tabled by the Opposition party is based on the misleading premise that Government charges are among the biggest costs faced by businesses in Ireland today. This simply is not true. Research undertaken by the Irish Management Institute highlighted the major cost concerns of multinationals in Ireland. Energy and labour costs, not Government charges, were to the forefront of these concerns. This, too, is the message we are getting from the SME sector, along with the separate issue of credit availability. The Government has focussed on the actual priorities of businesses, including energy and labour costs and is addressing these concerns. Where Government charges are an issue, we are determined to maintain downward pressure.

I will deal first with energy costs as referred to by Deputy Coveney. The trend of energy prices in Ireland has been downward. Following significant energy price reductions in May 2009, since the beginning of October there has been a significant reduction in gas prices and a modest reduction in electricity prices for medium-sized business customers. Overall, all categories of businesses, including SMEs, have benefited from significant energy price decreases in 2009.

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