Tom Morrissey (Progressive Democrats)

Competition is not evident in all areas, but it is in many. I witness it on a daily basis.

With regard to telecommunications, not a month goes by without my business receiving a call from a telecommunications provider offering lower charges. I have lower charges year on year by changing providers, not by being loyal to one. On a monthly basis, we are asked by telecommunications providers to submit our bill so they can cut it by 5%, 10% or 20%. That is what happens when one shops around. That is what competition is about.

Ireland is one of the most open economies in the world in terms of cross-border movement of goods and services. If Irish companies are to be in a strong position to compete in international markets, it is important our cost base is not out of line with our main trading partners.

In a week when the euro reached a new all-time high of €1.29 against the dollar, Ireland's cost competitiveness is cause for concern. The Central Bank's quarterly bulletins consistently refer to the risk of euro-dollar exchange rate movements to our competitiveness. Our loss of control over exchange rates means there is now a real challenge to develop new policy tools which cushion Irish competitiveness and growth from the effects of exchange rate volatility.

I acknowledge the work done by the National Competitiveness Council in tracking our competitiveness. The council was established by Government as part of the Partnership 2000 agreement. Its job has been to advise Government on areas in need of particular attention in order to maintain and improve our competitiveness. The recent publication of the council's seventh annual competitiveness report on the benchmarking exercise and its competitiveness challenge report regarding policy recommendations makes this debate very timely.

The basic principle of the NCC is that the Government can have the greatest impact on competitiveness through policy measures across key areas of the economy such as competition and regulation, the labour market, taxation and macroeconomic policy, infrastructure, education, enterprise development and research and innovation. The correct policy mix will deliver rising productivity, sustainable wage levels and a competitive cost base. If we are successful, benefits will materialise in terms of strong economic and employment growth, improved living standards and a better quality of life for all people on this island.