Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the Deputy for raising the matter. Ireland’s overall competitiveness performance remains positive. Our improved fiscal position and increased cost competitiveness have all contributed to Ireland’s improved international competitiveness. This improvement is reflected in a range of metrics, notably economic growth, increased employment, falling unemployment and a strong trade performance. Notwithstanding this strong position, addressing Ireland’s cost competitiveness remains a key economic priority for Government and we continue to monitor Ireland's cost base and analyse the factors that are crucial to improving our cost competitiveness.

Recent reports published by the National Competitiveness Council found that the cost base for enterprise is internationally competitive across a range of metrics, for example, the cost of starting a business, communications costs and average income taxes. The council also highlighted that Ireland remains a relatively high-cost location and cost pressures are evident in residential property, credit, energy, labour and business service costs.

A range of initiatives in the Action Plan for Jobs 2018 are in train across Government to enhance our cost competitiveness and productivity, improve the ease of doing business, reduce the administrative burden and drive greater efficiencies across the enterprise base. Through the Action Plan for Education and Pathways to Work, the Government is working to ensure the pipeline of talent can meet the demand for labour to reduce labour cost pressure. My Department has reviewed the policies underpinning the current employment permits regime to ensure it is fully supportive of Ireland’s emerging labour market needs, whether they are skills or labour shortages in certain sectors. The work of the Personal Injuries Commission, whose second and final report were published in September 2018 by my Department, the implementation of the report on the cost of motor insurance and the complementary work of the cost of insurance working group should help to reduce insurance costs for businesses.

I launched the €300 million Brexit loan scheme in March 2018 which supports the working capital needs of companies on which Brexit has, has had or will have an impact. My Department, in conjunction with the Department of Agriculture, Food and the Marine, the Department of Finance, the Strategic Banking Corporation of Ireland and the European Investment Fund, is developing the €300 million future growth loan scheme as announced in budget 2019 to allow businesses to borrow for up to ten years to support capital investment.

Enterprise 2025 Renewed also places increased emphasis on enhancing our competitiveness position by developing Irish-owned enterprises. We are placing a spotlight on innovation and skills. Enterprise Ireland also places strong emphasis on competitiveness. It supports exporting enterprises with initiatives in Lean, research and development and innovation, as well as management development.

Additional information not given on the floor of the House

In addition to the wide range of existing supports provided by my Department and agencies, budget 2019 allocated additional funding for my Department to boost business productivity such as a doubling of the allocation for the retail online pilot scheme to €1.25 million. An additional €2.75 million was also awarded to Enterprise Ireland for its SME regional innovation and technology clusters programme. The budget provides an extra €8 million for my Department’s Brexit response and global footprint.

In ensuring our cost competitiveness there is a role for the public and private sectors alike to proactively manage the controllable portion of their respective cost bases, drive productivity and continue to take action to minimise costs.

See this speech in context