Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

4. To ask the Minister for Jobs, Enterprise and Innovation as the lead Minister for the Action Plan for Jobs, the steps he will take, following Ireland’s continued decline in global rankings, to ease the transaction of business and Irish competitiveness levels; and if he will make a statement on the matter. [38078/15]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

We have discussed the report of the National Competitiveness Council and its concerns. The report refers to the environment for entrepreneurship being poor in international competitiveness, particularly in reducing the time, complexities and procedures associated with enterprise start-ups.

The World Bank's competitiveness rankings show it is becoming harder to start a business, obtain credit for business and resolve insolvency in Ireland. What are the Minister's plans to deal with these issues?

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

From 2000 onwards, on the three main competitiveness indices - those produced by the World Economic Forum, IMD and the World Bank - our rankings fell from peaks of fifth, seventh and seventh in the world, respectively, to 29th, 24th and 16th in the world, respectively. By the time the previous Government left office after the economic crash hit, Ireland’s competitiveness had been seriously damaged, more than 300,000 jobs had been lost in the private sector and unemployment had reached a high of 15.1%.

Since entering office, the Government has helped our rankings improve and 126,000 people are back at work. While competitiveness is improving, there is no room for complacency. The Government continues to undertake a range of significant structural reforms to restore and improve national competitiveness. We have made work pay better, improved access to finance for business, streamlined regulatory processes and reduced the administrative burdens on business. We have also implemented changes to make the tax system more competitive in supporting entrepreneurship and innovation, improved skill availability in key areas and vigorously opened up new export markets.

Our domestic cost base has improved, making Irish firms more competitive internationally. The exporting sectors of the economy, particularly companies supported by Enterprise Ireland and IDA Ireland, are winning new markets and creating jobs at record levels.

Since its introduction, the Action Plan for Jobs has recognised the fundamental link between competitiveness and job creation and has been the key mechanism for driving competitiveness in all areas of economic activity. All of the action plans to date have provided a sharp focus on specific aspects of the competitiveness agenda, particularly in the areas of costs, improving Ireland's global competitiveness ranking and making it easier to start, run and scale a business.

Our improving competitiveness performance is manifest in increased employment, with the latest figures showing another decrease in unemployment to 9.3% from a crisis peak of more than 15%. These show the progress being made. I have strengthened the National Competitiveness Council which reports regularly to the Cabinet sub-committee on economic recovery and jobs. This facilitates timely attention to areas of opportunity for improvement.

The immediate challenge is to sustain the recovery under way by remaining competitive. There is a continuing and urgent necessity to enhance the regulatory environment for start-ups and small and medium enterprises to enable them to trade successfully in increasingly competitive global markets. Further actions and reforms driven by the Action Plan for Jobs 2016 which is being prepared will enable us to further narrow the gap with the world's most competitive countries and achieve our objective of sustainable full employment.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Ireland was in the top ten in the World Bank's competitiveness survey in 2010. During the Minister's period in office we have fallen behind Estonia and Macedonia in the global rankings. The Minister referred to Ireland's competitiveness strength. I will cite some facts as opposed to offering fictional spin. New business interest rates for non-financial corporations are up to 81% higher in Ireland than in the rest of the euro area and our electricity and energy costs are significantly higher than the average in the euro area. Any improvement in Ireland's competitiveness is the result of reductions in labour costs which have nothing to do with Government policies because they are being shouldered by workers.

The Minister spoke about strengthening the National Competitiveness Council, yet the Government ignored the council's recommendations as well as its statement that Ireland's environment for entrepreneurship was poor in international terms. The Minister constantly refers to the necessity to support start-up businesses, yet Ireland has fallen six places in the rankings for ease of starting a business. If Ireland is to be the best country in the world in which to do business in 2016, as the Taoiseach declared in one of his rambling statements, we are a long way from achieving that objective and without specific responses, we will not move closer to achieving it.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I will not go into the reasons for the interest rate differential between Ireland and the rest of the euro area other than to point out that the issue dates back to the economic and banking collapse over which the previous Government presided.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

That collapse occurred across the eurozone.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is becoming easier to establish a company in Ireland. The Government has streamlined company legislation and made it quicker to establish a business and easier to raise finances.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Why has Ireland fallen six places in the global competitiveness index?

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The amount of venture capital released in the past 12 months was double the amount released in the previous year. This indicates strong growth in venture capital availability. The number of new start-up companies increased by 25% in the past 12 months, as recorded by the Companies Registration Office, and we are experiencing a strong surge of interest in starting businesses, particularly among young people. We have provided a better tax environment and access to finance and offered different products in the field. The Strategic Banking Corporation of Ireland has been established and is exploring other ways of enhancing the environment. While further progress needs to be made, the indicators show we have a strong and improving start-up environment which needs to be supported and maintained.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The indicators show it is becoming harder to start a business and secure credit. The Minister referred to several banking initiatives. What is his reaction to this morning's announcement by Bank of Ireland that it will restrict cash dealings at branches, that is, lodgements and withdrawals, to amounts of more than €700? This decision will make it much harder for small businesses, particularly in the retail sector, to do their day-to-day banking, not to speak of older people and others who do not live near bank branches. It will make it more difficult for small businesses, especially retail service businesses which are customers of Bank of Ireland, to operate. What is the Minister's response to Bank of Ireland's announcement?

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is not becoming harder to obtain credit. The participation in micro-finance has increased by 100% in the past 12 months.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Ireland's ranking has fallen four places.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

New lending by banks to small and medium enterprises has increased by 26%, while venture capital released to start-up companies has doubled in the past 12 months. There is, therefore, a strong flow of capital to start-up businesses.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

In that case, the World Bank must be wrong.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy can see the figures for himself and I have no doubt that our ranking will improve when they impact.