Rose Conway-Walsh (Mayo, Sinn Fein)
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3. To ask the Minister for Enterprise, Trade and Employment if he will provide an update on his action plan on competitiveness and productivity. [33466/25]

Rose Conway-Walsh (Mayo, Sinn Fein)
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I thank Deputy Lawlor for facilitating me as I must leave shortly to chair a meeting of the Oireachtas Joint Committee on Defence and National Security. I ask the Minister to provide an update on the action plan on competitiveness and productivity. I am aware that the closing date for submissions to the public consultation on the action plan is tomorrow. I ask the Minister to provide information on how many submissions have been received to date and what sort of outreach the Department has done in that area.

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank the Deputy for this very important question in an area that we are really moving the dial on. Ireland currently holds a strong competitive position globally, ranked seventh overall, and first in the eurozone, in the annual IMD world competitiveness rankings for 2025. However, we cannot be complacent and work remains to be done in many areas. We are aware that there are significant challenges and it is important that we do not take our strengths for granted. In a rapidly changing and uncertain international environment, it is fundamental that we take action to address long-standing legacy issues as well as emerging threats to our competitive performance. Persistent high costs in areas such as energy continue to challenge the competitiveness of businesses, particularly SMEs. Moreover, external shocks like Brexit and geopolitical uncertainties have embedded themselves into the cost structure, making it harder for businesses to remain competitive, whether indigenous or FDI.

In response to international economic developments, and in line with a commitment in the programme for Government, work is under way on the development of an action plan on competitiveness and productivity. The Government agreed to accelerate the timeframe for this work and the action plan will be presented for consideration at a competitiveness summit to be held in July. The action plan will reflect a whole-of-government approach to domestic drivers of, or barriers to, competitiveness, focusing on areas firmly within our own control. Its development has been informed by extensive consultation across Government Departments and with external stakeholders. My Department has already undertaken a series of bilateral engagements with key Government partners, including in the areas of infrastructure, housing, research and innovation. This discussion will continue over the weeks ahead. My Department has also launched a public consultation which is currently open. The action plan will also be guided by the forthcoming Ireland's Competitiveness Challenge 2025 report from the National Competitiveness and Productivity Council, NCPC. That evidenced-based input will be vital to ensuring that our policy responses are targeted, proportionate and future-facing.

Rose Conway-Walsh (Mayo, Sinn Fein)
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I thank the Minister for that update and welcome the work that has been done. What engagement has the Department had with the unions on the action plan? My fear is that workers' rights will be sacrificed on the altar of productivity. We need to be very careful in this space to bring workers and businesses together and ensure that there is not further division and polarisation between them. I am afraid that the threat of international trade tariffs will be used as fig leaf to guillotine employment rights, usher in bad trade deals like CETA and renege on our climate commitments.

We all want a strong economy but there must be balance. The business organisations I have engaged with are pointing to the lack of housing, pressures on services and the diabolical cost of living as presenting the biggest threat to business expansion. Have all these issues been taken into account in the action plan? It is really important that we have a sustainable plan that will address the cost of living and the cost of doing business as we go forward.

Peter Burke (Longford-Westmeath, Fine Gael)
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No Government has done as much for workers' rights as the previous Government, of which I was a member, did in terms of banning zero-hour contracts, bringing in tips legislation, introducing more agile practices in the workplace, the fruits of which we have seen and bringing in a statutory sick pay scheme. We turned the dial on a number of areas that had been neglected for years.

It is my job and responsibility to ensure businesses remain viable. I have met with union leaders over the past number of weeks in connection with the work that is ongoing in my Department. They expressed concern in some areas but they also acknowledged the huge number of reforms that have been carried out. We have the biggest reform of employment law ongoing through the employment law review group, which is examining laws that affect so many citizens right across the country. I am keen to ensure businesses remain viable. The cost of business advisory forum had its inaugural meeting last week. We have established a small business unit in the Department. We are changing the dial by doing things in a more simple, light and fast way. That will be my approach in the Department to ensure we really incentivise our indigenous economy.

Rose Conway-Walsh (Mayo, Sinn Fein)
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I am glad to hear the Minister say that. As he knows, Fine Gael having been in government for 14 years, indigenous businesses have so far been left behind. The figures for foreign direct investment speak for themselves. The Minister talks about competitiveness and he is not wrong in the figures he is putting forward. However, he dismisses the figures relating to the competitiveness of the regions. As the Minister of State, Deputy Dillon, will know, the west and north-west region is in the bottom 7% in terms of competitiveness, according to the EU index. The facts speak for themselves.

Yesterday, I participated in a discussion at the enterprise committee regarding the EU omnibus package. The Draghi report indicated serious competitiveness deficits across the European Union that absolutely need to be addressed. I have huge concerns about both the contents of the proposed legislation and the manner in which it is being introduced. We certainly need simplification but what we do not need is deregulation.

Peter Burke (Longford-Westmeath, Fine Gael)
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Let me bust the myth to which the Deputy referred. Our indigenous economy is at record levels. Currently, Enterprise Ireland is supporting 234,000 jobs in our country. Our exports, at €36 billion, are at record levels. Enterprise Ireland companies spend €39 billion in our wider economy. The Deputy referred to the FDI sector. There are some very significant FDI companies in the country that interact with indigenous companies. For example, one company in the semiconductor space has interactions with and has built in 831 SMEs into its supply chain. The same is happening with companies from Banagher Precast Concrete to Kiernan Structural Steel in Longford. That is very important for our indigenous economy. I am trying to close that eco cycle to ensure our SMEs benefit from the presence of the FDI sector. That is happening in front of us.

To be clear on the facts, Ireland is the most competitive economy in the eurozone. I want to make sure that does not change. The actions I take will ensure our businesses have the best environment in which to grow, that we support viability and that we continue to grow our economy, as we did with the 90,000 extra jobs that were created over the past year. That is 90,000 families with an extra income.

Rose Conway-Walsh (Mayo, Sinn Fein)
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What the Minister is saying is not compatible with what we are hearing from business organisations and what we know, which is that businesses are really struggling right now. They are struggling with energy costs, red tape and so many different things. That must be addressed. It is not right to say everything is okay for businesses, including indigenous businesses.

David Maxwell (Cavan-Monaghan, Fine Gael)
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I apologise for interrupting the Deputy but she is on her fourth contribution on this question. She has already been up three times.

Rose Conway-Walsh (Mayo, Sinn Fein)
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Sorry, a Chathaoirligh, I was not counting. The Minister has heard my message.

David Maxwell (Cavan-Monaghan, Fine Gael)
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I thought I was counting wrong. Deputy Conway-Walsh has asked that we proceed directly to her next question, which is No. 5, as she has to leave. Is Deputy Gibney agreeable to that?

Sinéad Gibney (Dublin Rathdown, Social Democrats)
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Yes.