Mary White (Fianna Fail)

A map which was published in The Irish Times during the week shows that Ireland's per capita purchasing power is €25,000. This is higher than that of any of the other 25 EU countries apart from Luxembourg, which is a cash cow economy. This contrasts with our economy when we joined the EEC in 1973. The new member states, particularly the Baltic countries of Estonia, Latvia and Lithuania which have a per capita purchasing power of approximately €9,000, look to us as a role model.

These countries will challenge us in the future. No matter how good our economy is we are faced with two major challenges. The Forfás annual report for 2003 warns of the level of foreign direct investment into China and the countries of central and eastern Europe. These countries are no longer poor in education and skills and will give us mega-competition. We face even greater competition for foreign direct investment than in the past.

The second challenge arises from the lack of competitiveness in our economy. We need foresight, consistent economy philosophy and creativity to bring our economic institutions on board to attain the necessary level of competitiveness. Without them the economy will slip back. We need a sustained commitment to policies which deliver a rate of inflation below that of our main trading partners. In my own business I experienced a competition cushion when the euro was weak but now that the euro has strengthened against sterling I find it harder to do business. If trade unions, IBEC, other employers' organisations, chambers of commerce, workers and management do not work together the economy will suffer.

Over the last four years, Intel made a $2 billion investment in Fab 24, the latest and most powerful microchip available in the world. Last weekend, the employees of the Intel plant in Leixlip, under Mr. Jim O'Hara, produced the first run of Fab 24 and achieved the highest first run yield of any Intel facility in the world. The Intel plant in Leixlip employs more than 3,000 people. This achievement consolidates the Irish Intel plant in the international Intel corporation.

My own company faces a new challenge. We heard two days ago that we may sell our Baileys chocolates outside of Ireland. We must be competitive. One can do so much within one's own company but one faces many indirect cost increases. These must be challenged by the Government.