Leo Varadkar (Dublin West, Fine Gael)
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Question 3: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason there has been no improvement in Ireland's economic competitiveness, according to the World Economic Forum report; the measures she will take to restore Ireland's economic competitiveness; and if she will make a statement on the matter. [41985/08]

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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The World Economic Forum, WEF, Global Competitiveness Report 2008-2009, ranks Ireland 22nd overall, the same score recorded for 2007-08 and 2006-07. Ireland was ranked 30th in 2003 and 2004. Achieving 22nd place out of 134 global economies is not a negative scoring for a small economy such as Ireland.

The World Economic Forum ranks countries according to 110 indicators. Within this set of rankings we score well in a number of important areas. For example, Ireland scores first place for the business impact of rules on foreign direct investment, seventh place for the number of procedures required to start a business and our financial markets, at seventh place, continue to be assessed as among the most sophisticated in the world. University-industry research collaboration has increased two points from 18th place last year to 16th place this year. We also score well on quality of primary education — seventh place — foreign direct investment and technology transfer — second place — and availability of scientists and engineers — 14th place. Our WEF competitiveness ranking has not declined for the past three years, while some other European Union countries have not managed to maintain their positions over the same period.

Many international reports and organisations measure our competitiveness and Ireland is ranked differently depending on which one chooses. For example, we are ranked second in the world as the best place to do business in 2008 according to a survey by Forbes magazine in June. Ireland is the second most competitive economy in Europe according to the Lisbon Council's European jobs and growth monitor published last March. We were ranked 12th in the world in terms of overall competitiveness in 2008 according to the IMD world competitiveness centre and the World Bank ranks Ireland eighth out of 178 countries for ease of doing business.

We are fully committed to strengthening the competitiveness and productive capacity of the economy.

Additional information not given on the floor of the House.

Our priority remains the creation of high quality, sustainable employment, driven by companies with higher profitability which are technologically advanced and prove a better fit with the competitive characteristics of our economy. We have a strong support system for developing the capabilities of Irish companies to compete on international markets with innovative products and services.

In terms of enhancing productivity growth, which is the cornerstone of our competitiveness, my Department has a capital allocation of €495 million for 2009, which will be spent on productivity enhancing investments by departmental agencies, namely, Science Foundation Ireland, Enterprise Ireland, the Industrial Development Agency and county enterprise boards. In addition, the Government remains committed to investing in key national infrastructure projects through the national development plan.

To underpin long-term competitiveness my objective is to ensure we build the productive capacity of the economy through investing in people. I am doing this directly through the science, technology and innovation strategy and our skills strategy. I am confident that the areas on which we have chosen to focus are paying dividends and working well in terms of attracting and maintaining investment and growing jobs.

Leo Varadkar (Dublin West, Fine Gael)
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I do not need to remind the House that Ireland is in the depths of a recession which will probably be deeper and longer than many of us anticipated. One cannot tax, borrow or cut one's way out of a recession. We will have to trade our way out of this recession and that will require restoring competitiveness. As the Minister of State indicated, Ireland has been stuck in 22nd place in global competitiveness rankings for some time. During the Celtic tiger period, we were ranked 30th.

When Deputy Richard Bruton and Deputy Mary Harney held this Ministry we were in fourth place in the world. We need to get back to that type of position to restore growth levels. The Minister of State gave examples of some other measures in terms of ease of doing business, which is different to competitive measures. Does he accept the findings of the report which particularly identify what I term the "three I's", inflation, infrastructure — where we fell from 55th place to 64th, just behind Barbados — and inefficient Government bureaucracy, to the effect that these are the now the major drags on competitiveness?

More importantly, since it is his Department's responsibility to drive competitiveness and push associated policy, is he satisfied with the progress made by the former Minister for Enterprise, Trade and Employment, Deputy Martin, in recent years and the Government with regard to the fact that there has been no improvement in three years?

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I remind the Deputy that is one survey but there are many others some of which have ranked Ireland at a much higher position, including the IMD. There is an argument to the effect that the World Economic Forum survey is very much based on perceptions, whereas the IMD survey is based more on factual information. There are other surveys, such as that of Forbes magazine, which ranks our country second in the world.

Inflation is falling. The National Competitiveness Council is to bring forward proposals in the near future to deal with that whole area.