Marc MacSharry (Fianna Fail)

I thank Senator Quinn and the Independent Senators for raising this issue. The amendment could have been penned in a slightly different way. A figure of 2.2% is not far off2%. No matter who wishes to kick the football around or claim credit for the goals, this Administration or the larger party in it has been in Government pretty much since 1987. It took difficult decisions in 1987 when I recall effigies of certain individuals being burned.

With the great success we have experienced over recent years comes new challenges. These are different because we are victims of our success. We see chronic carnage on the roads. We no longer ask if we can get a telephone connection or pay the ESB bill but if we can get reception for Sky Digital for the Celtic and Manchester United game or if we can get a BMW. Ireland is very different.

Senator John Paul Phelan cautioned others that he was not born in a particular period. Those who are young no longer wish to hear how bad things were in the dark days. It is time to plan for the future and keep our competitive position under scrutiny. Since Senator Quinn spoke I have not heard much debate on the motion. It is a plea to the Government to keep the inflationary position under surveillance. That has been done.

Other issues, besides inflation, affect our competitiveness. I was chief executive officer in Sligo Chamber of Commerce and learned much about competitiveness. The decision-making process of those attracted to the country by Mr. Seán Dorgan includes matters of corporate governance, a favourable regulatory system and tolerance of ethnic mixes and sexual or religious persuasions. Tolerance is a significant issue for multinationals or people looking to invest in other countries. In many ways, Ireland is living up to the expectations of many. Senator Mansergh mentioned Cisco Systems, which recently announced plans to create 200 jobs in Galway.

Senator Ryan has great concerns about the American Chamber of Commerce in Ireland report on this country which pointed out something about which this Government is very aware in respect of its level of investment in infrastructure along the Atlantic corridor, which the Senator mentioned and which is prioritised in terms of Transport 21. Much of the work is already completed, although work is continuing on certain parts along the route.

There are two particularly significant developments in respect of the type of competition Ireland faces going forward. One of these which we have not fully grasped and on which we possibly need to focus is the impact of China and India. When China entered the World Trade Organisation, one quarter of the world's population entered the multilateral trading system. This changes its entire structure dramatically, especially in the area of manufactured goods. Inflation for goods has been quite low but we will see substantial competition in the area of services when the services directive comes into play. When this happens, which might be in the not too distant future, it will, in many people's opinion, be as significant for competition in services as the lifting of tariffs. We must be very conscious of this.

A number of comments were made in respect of the report by the National Competitiveness Council. I share the view of the Minister for Enterprise, Trade and Employment on this report. He recently said that in our broadest competitiveness position, he was confident it would remain robust, particularly in those sectors of the economy which drive economic growth and employment. One of the areas where I would like to see us focus heavily is research and development and innovation. Ultimately, the most valuable currency going forward is our intellectual property. If we can breed and attract more intellectual property and plan our strategy for the future in an innovative way, we will have matched many of the challenges of competitiveness as we look to the future.

Developing an innovation strategy is not an exact science but it helps companies to focus on the fundamentals of their business and where improvements can be made. Having a strategy also reduces the haphazard nature of business development. Businesses will have more hits than misses because they will be taking into consideration issues like return on investment and market potential. If we can approach our competitive situation in this way on a cross-departmental level, we will have equipped ourselves well in meeting the challenges as they arise.

Nobody could possibly have envisaged how well we have performed in the past 15 years and how ideally placed we are to take this a step further and push the boat out more. While I obviously support the amendment, I commend Senator Quinn, who, in the context of his other career, is a great example to us in the matter of competitiveness through placing his business in a very competitive position in the marketplace. I thank him and we are grateful to him for putting this issue on the agenda. Much has been done but there is much more to do. We must be vigilant and be prepared to be flexible in the context of our corporate governance and a favourable regulatory system as we plan and prepare for the future.