Willie O'Dea (Limerick City, Fianna Fail)
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Question 4: To ask the Minister for Jobs; Enterprise and Innovation the measures he has implemented to improve competitiveness in relation to commercial rates, commercial rents, energy costs, utility costs and insurance costs; and if he will make a statement on the matter. [27561/12]

Richard Bruton (Dublin North Central, Fine Gael)
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The action plan for jobs 2012 which was published on 13 February includes an extensive range of measures across government that will help to reduce costs for businesses and support job creation, including in each of the areas identified by the Deputy. For example, the majority of local authorities have reduced or frozen their annual rates of valuation at 2011 levels, NAMA is taking action to place downward pressure on rents in its property portfolio, a series of actions is aimed at reducing energy costs and improving energy efficiency for enterprises and downward pressure will be put on insurance costs through the enactment of the legal services Bill.

In my area of responsibility I have taken a number of specific actions that are directly aimed at improving the competitiveness of enterprises. These include the reform of the joint labour committee-registered employment agreement system which is before the House. A number of initiatives are being implemented or being progressed to improve access to finance. My Department has reduced business burdens within its areas of responsibility by more than 24%, which will yield potential savings of €206 million per annum for business. Tangible progress is also being made in the reform of the State's employment rights and industrial relations structures, which will result in a more cost effective and swifter service for workers and employers. The implementation of all of these measures will help to improve our international competitiveness further.

The Government's progress in improving Ireland's competitiveness is reflected in the IMD World Competitiveness Yearbook rankings which were published last week. Ireland has reversed the downward trend of recent years and improved four places in the rankings to 20th overall and eighth out of the 24 EU countries benchmarked. Of course, there are still many issues to be addressed and the Government will continue to focus on these through the action plan for jobs process.

Willie O'Dea (Limerick City, Fianna Fail)
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Does the Minister agree that, despite the recent survey findings, many of the improvements in competitiveness have been cyclical rather than structural? For example, unique among the countries of Europe, Ireland has a major trading relationship with the United Kingdom and the United States. The reduction in the value of the euro against sterling and the dollar has helped to improve Ireland's competitiveness. In so far as structural issues are concerned, being areas within the Government's control, what has the Government done to reduce commercial rates? Regardless of which side of the House one is on, every Deputy knows of cases in which small businesses are being forced out of existence by the requirement to pay commercial rates. It is not sufficient to claim that some local authorities have frozen their rates. Some businesses are struggling. They are on the margins and cannot afford to pay commercial rates. Rates are not a progressive form of taxation, in that one has to pay regardless of whether one is making a profit.

The Government has abandoned all attempts to fulfil its election promise on the issue of upward-only rent reviews. It is not enough to say there is conflicting legal advice, throw one's hands in the air and walk away. Earlier, we were discussing the situation with Atlantic Homecare which is being driven into examinership due to high rents which predate the Government's recent legislation. There appears to be runaway inflation in certain areas, for example health insurance, which are directly under the Government's control. The Minister referred to the Legal Services Regulation Bill which I believe will increase rather than reduce costs. This, however, is not the time to debate that Bill. The Minister will be aware that several years ago, the then Government radically changed the insurance system which drove down costs. Some of these costs, particularly in public liability, are beginning to creep up again. What are the Government's proposals in this regard? Will the Minister confirm the Government has no proposal to increase the element of energy costs that come under its control?

Richard Bruton (Dublin North Central, Fine Gael)
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The Deputy has raised several issues that are not my direct responsibility. Accordingly, I cannot give him comprehensive answers on these and would advise him to table questions to the relevant Ministers.

The ESB is undergoing a cost-reduction programme of 20% in its cost base. The valuation (amendment) Bill will be introduced to deal with commercial rates as has the legal services Bill. We have achieved cost competitiveness improvements that are not cyclical. The 20% improvement in unit wage cost compared to the rest of the eurozone is not a cyclical factor but a genuine change. The Minister for Finance has reduced PRSI so that it is now cheaper for employers to take on employees. We have reduced the tax burden, particularly targeting small businesses to enable them to take on people on job assist and using research and development. There have been many changes to make it easier and cheaper to help drive businesses to success. These are the issues we seek to address. The Deputy is entitled to table parliamentary questions to other Ministers in their specific areas which I am not competent to fully answer.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Deputy O'Dea has ten seconds.

Willie O'Dea (Limerick City, Fianna Fail)
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The main reduction in costs seems to be unit labour costs concentrated among the lower paid, which is what the industrial relations Bill is about. That is no proud boast.

The Minister claims tax has been reduced on employment initiatives. Tax in this area has increased appreciably over the past year which has increased the cost of employment.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Could the Deputy put a question because he is over time?

Richard Bruton (Dublin North Central, Fine Gael)
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Deputy O'Dea is simply wrong. The Government did not increase any of the employment related costs, neither income tax nor PRSI. In fact, it reduced PRSI and took people out of the universal social charge. We actually reduced the costs on employment directly in the last budget.

It was the previous Administration that did what the Deputy has just claimed. Action is being taken against constrained resource time. It is not true that wage costs are focused on the lower paid. The unit wage cost improvement of 20% is on the aggregate of wages across all scales.

Willie O'Dea (Limerick City, Fianna Fail)
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That is concentrated mainly on the lower paid.

Richard Bruton (Dublin North Central, Fine Gael)
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The statistics would not support that claim.