Seanad debates
Wednesday, 28 May 2025
Economic Competitiveness: Statements
2:00 am
Peter Burke (Longford-Westmeath, Fine Gael)
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I thank the Leas-Chathaoirleach and Members for the opportunity to address the House on the important issue of Ireland's international competitiveness and, in particular, on the approach by the Government to strengthen Ireland's competitiveness and productivity performance. This is my first time addressing the Seanad during this Dáil term and I look forward to working with all colleagues across the House in the coming weeks and months.
In a time characterised by a rapid pace of change in the global trading environment and unprecedented economic uncertainty marked by geopolitical tensions, trade disruptions, and sustained inflationary pressures, the ability of our economy to remain agile and resilient is paramount. In general, Ireland's competitive position is quite strong. Ireland was ranked as the fourth most competitive country in the world in the IMD world competitive ranking and was first in the eurozone area. This finding was confirmed in the recent assessment by the National Competitiveness and Productivity Council.
However, we cannot become complacent and there remains work to do in many areas. Despite our strong international performance, we are aware that there are significant challenges and it is important that we do not take our strengths for granted. Now more than ever, it is fundamental that we take action to address long-standing legacy issues as well as emerging threats to our competitiveness performance.
As Senators will be aware, the programme for Government includes a commitment to develop an action plan on competitiveness and productivity which will play a key role in safeguarding our competitiveness performance in to the future. In response to the challenges facing Ireland's enterprise base, including small indigenous firms and multinationals, I was of the firm belief that we should have no delays in working on this important plan. I secured Government approval to expedite the delivery of the action plan last month. I am currently working on a draft of the action plan and it will be brought to Government Ministers for discussion at a dedicated competitiveness summit to be held in July. The final action plan will be published as soon as possible thereafter and will be fed directly into the forthcoming Estimates and the budgetary process.
The action plan will reflect the whole-of-government approach to domestic drivers of competitiveness, focusing on areas firmly within our national 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 in the weeks ahead alongside broader stakeholder engagement and public consultation.
The action plan will also be guided by the forthcoming Ireland's Competitiveness Challenge 2025 report from the National Competitiveness and Productivity Council, which is due to be published in early June. That evidenced-based input will be vital to ensuring that our policy responses are targeted, proportionate and future-facing.
The overarching objective of the action plan is to maintain and improve Ireland's position as a s competitive and productive economy capable of withstanding shocks, building on our strengths and developing our indigenous enterprise base while continuing to attract investment and talent from abroad. The action plan will, therefore, contain a set of actionable recommendations with clearly defined implementation timelines and departmental ownership. This will ensure accountability, which is vital. Emerging themes to be addressed in the action plan include embracing innovation,.scaling up small- and medium-sized enterprises, enhancing infrastructure capacity, stressing regulatory efficiency, promoting regional development and bolstering export competitiveness.
In addition to measures to be included in the action plan, the Government has approved a suite of short-term measures that I have work on for more immediate implementation where feasible. They aim to deliver early improvements in key areas, particularly those impacting SMEs and the cost of doing business. I am glad to confirm that several of these have already been delivered on.
The national semiconductor strategy was brought forward and launched on 19 May. This strategy was developed in line with the European Chips Act and the EU digital decade and aims to make Ireland a global leader in semiconductors. The strategy is ambitious and is designed to create high-value jobs, secure long-term investment and cement Ireland's role as a critical player in Europe's semiconductor future. I am targeting an additional 34,500 jobs in this sector in the coming years, building on the 20,000 we already have in the Irish economy.
The timeframe for implementation of the living wage was extended, as agreed on 15 April, and further changes to statutory sick leave have been halted, keeping our new statutory sick leave at five days, after which the social welfare system kicks in, meaning no worker has a gap in his or her pay.
I have established a small business unit within my Department. The purpose of this unit is to ensure the needs and issues of small businesses have a dedicated focus and are recognised and acknowledged right across government. The unit will, among other things, focus on rigorously implementing the SME test. Through the SME test, the importance of the think small first principle is being installed across Government. I have had a lot of engagement from colleagues in this area across the House on the small businesses unit ,which will be of great assistance in refocusing our priorities when it comes to supporting our Irish SMEs, which we all know provide the backbone of our rural and regional economies.
In addition, work is under way on a broad range of other measures, including international trade promotion, addressing costs and improving energy infrastructure. Officials are actively working on delivering these outstanding measures. These include expediting the implementation of CETA, and priority work is already under way on other international trade agreements, developing an action plan on market diversification to include an assessment of overseas offices of the State agencies in trade promotion as well as an overview of trade missions which could be expanded.We have more than 180 Enterprise Ireland business advisers based in all major cities around the world. We stand ready to support Irish businesses in breaking into new markets and increasing trade. We are prioritising and accelerating the introduction of security clearance arrangements for exporting firms, subject to the resolution of legal issues.
We are working with colleagues in the Department of the Environment, Climate and Communications to ensure the CRU decision on data centres is published to provide certainty to the industry. We will secure agreement and publish a medium-term action plan to connect large users to the power grid. We will host a joint Government-industry forum on offshore renewable energy to oversee progress on delivery of Ireland’s offshore renewable energy objectives and related economic and competitiveness challenges, get an update on the work under way through the offshore renewable energy task force, identify how best public and private sectors can work together over the coming years on the energy transition, and scope out the role of the proposed climate investment clearing house. Accelerating the deployment of electricity grid infrastructure by early identification of suitable sites in public ownership is also of vital importance, as is exploring options for development routes to market for zones B, C and D in the south coast DMAP to provide a pathway for future offshore wind energy to meet growing electricity demand.
I also want to highlight the important role of wage policy in the wider competitiveness agenda. The Government remains committed to the phased introduction of the living wage and to ensuring fair pay for all workers. At the same time, we are acutely aware of the need to manage this transition in a way that does not compromise employment or the viability of businesses. Recent increases in the minimum wage have delivered meaningful improvements for low-paid workers and we will continue to take a balanced and evidence-based approach in future decisions. In that context, I look forward to receiving the Low Pay Commission’s recommendations for 2026 later this year.
In support of this work, I also look forward to convening the first meeting of the new cost of business advisory forum on 11 June, which will play a key role in identifying targeted policy and administrative reforms to ease the cost of doing business. This forum will meet regularly over the coming months with a particular focus on the challenges facing small firms, including business taxation, regulatory compliance and administrative overheads. The views and experiences of SMEs will help guide the final action plan and inform future Government policy.
The global context in which we operate is becoming more complex and more competitive. Recent developments at EU level, especially the publication of the European Commission’s competitiveness compass, reflect a renewed focus across the Union on structural reforms to drive long-term economic dynamism. Ireland must be at the forefront of this agenda. By accelerating the development of our national action plan, we are signalling our determination to act decisively on the levers within our control. Our ambition is clear: to ensure Ireland remains one of the most competitive, innovative and resilient economies in the world.
Linda Nelson Murray (Fine Gael)
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I thank the Minister for coming to the Seanad today. It is his first time here and it is great to see him. I find him incredibly approachable and ready to listen and engage. Let us have a good conversation on competitiveness today.
Ireland is currently experiencing its highest employment levels on record. The number of people employed reached approximately 2.8 million in the first quarter of 2025. This is across all ages. The employment rate for individuals aged 15 to 64 reached 75.3% in the third quarter of 2024, the highest level on record. Average weekly earnings have risen in every sector of the economy over the past ten years. The average weekly wage is up by almost €279 to €955. This surge in employment reflects the resilience of the economy.
As the Minister has said, Ireland ranks as the most competitive country in the euro area. This is driven by strong economic growth, our highly skilled workforce and our success in attracting inward investment in high value-added economic sectors. It is fantastic that Government launched the national enterprise hub. I tell anyone I can get in a business about it. A lot of them do not seem to know about it so we probably need to do a bit more marketing of it. Whether big or small, businesses should log on there and see if there are grants appropriate to them. These supports include: the financial support to embrace technology grant; BeSMART, through which you can get risk assessments for free; financial supports to help make workplaces more accessible; LEADER programmes; and so on. All of these help with our competitiveness.
We know that small and medium-sized businesses are vital to our economic success. We regularly speak about them being the backbone of the Irish economy. I am a business owner myself. My husband and I employ more than 20 people. Without a doubt, it is not easy. I will move on to areas where we really struggle to help with competitiveness. I will take it to the local level. The Minister spoke about a lot of things in his introduction but I will bring it down to towns. In addition to national and global challenges, there are local factors that can hamper competitiveness for business in Ireland. The Minister mentioned the promotion of regional development. Parking is not his remit but local economies thrive when people can access businesses easily, comfortably and reliably. While walking, cycling and public transport are increasingly important, adequate car parking remains vital. I would like the Minister to liaise with some of his colleagues about this. This issue can undermine local competitiveness. This is what we are seeing in our small towns around Ireland.
I am sure it is the same in the Minister's hometown of Mullingar but places like Navan and Oldcastle in my home county of Meath are really suffering as regards car parking spaces. Parking may seem like a mundane issue but it is a critical part of local economic strategy. If people cannot park, they will not come and, if they do not come, businesses suffer. Parking is a way to preserve local competitiveness. It plays a crucial role in making businesses accessible to customers who rely on private vehicles, particularly those who are disabled. Adequate parking ensures customers can easily unload goods, visit shops and engage with businesses. Studies suggest that businesses with sufficient car parking experience higher sales and increased foot traffic. This is because customers are more likely to visit businesses that offer convenient parking. I do not mean to take anything away from Blanchardstown because it is a fantastic place but I too often hear that people are leaving Meath to go to Blanchardstown because of parking. I cannot walk the streets of Navan without a business owner expressing to me the difficulties he or she is facing due to a lack of parking. I have been liaising with Meath County Council, which is doing an incredible job on our Navan 2030 project. It is aware of the issue and is actively working on providing more car parking spaces. However, it is not just Navan. As I said earlier, this affects many towns. Although Deputy Burke is not the Minister for Transport, we are here to speak about competitiveness, which is impacted by this issue.
Another issue is broadband and digital infrastructure gaps. Broadband availability in rural Ireland is improving thanks to initiatives like the national broadband plan. While urban areas have near universal coverage, rural areas still face challenges, with coverage ranging from 42% to 50% depending on social and economic factors. Some rural and regional areas still suffer from low-speed or unreliable Internet. One such area is Ballivor, which again is in County Meath. A local business in the town contacted me in the last week. It still does not have fibre and an employee has left due to the stress of trying to do their day job. This also leaves that particular business at a competitive disadvantage.
Declining town centres, empty storefronts and poor public maintenance can deter footfall, as can antisocial behaviour such as graffiti. We have a shopfront enhancement scheme but this is not used for derelict buildings in our towns. In the centre of Navan, there are two derelict buildings full of graffiti. It does not entice you.
On commercial space, I will bring the Minister back to County Meath again. If you were to look at renting a 5,000 sq. ft building or 8,000 sq. ft premises in Navan today, you could not find one. If you wanted a premises of more than 10,000 sq. ft, there are only three such buildings. If you wanted to set up a gym, a small manufacturing company or somewhere to get cars fixed, there is nowhere to start that business. In Trim in County Meath, there are only two units for rent. We really need to look at this issue and to see what we can do to zone areas for commercial and industrial use. That is really important.
We recognise that many businesses are facing increased challenges such as high operating costs, talent shortages and housing and infrastructure issues. Housing is a critical pillar of Ireland's economic competitiveness. I am not going to go into it because we talk about it a lot but it is important we get it right so that we can retain skilled workers. Despite high employment levels, businesses are still struggling to find workers.
As I mentioned to the Minister this morning, I attended Retail Excellence Ireland's conference in Kilkenny on Monday evening. I spoke to a business that supplies self-scan machines for supermarkets. Personally, I prefer to go to somebody at a till. I asked why so many of these machines are being put in and if it did not lead to jobs being cut. Older people's social life may sometimes just be going to the shop. The last thing they want to see is a self-scan machine. My own dad, who passed away last year, did not like to do a weekly shop. He liked to go into the centre to do his daily bits as it passed a lot of time and he loved a chat. To go back to my question to the company supplying these machines, I asked why so many of them were being put in and said it was taking away jobs. The person said it was not that the company was taking away jobs but that people cannot be found to work in the supermarkets and that was why self-scan machines have to be brought in. I thought that was such a pity. It does not allow us to be competitive at a local level.
Ireland's rising costs, especially for rent, utilities, wages and insurance, are a growing burden for many businesses, especially SMEs. High insurance costs make Ireland a more expensive place to do business and only make our goods and services less competitive. Only this morning, the Minister and I were in a large manufacturing business in County Meath and heard of the frustrations caused by insurance. High awards are contributing to this and we are now on the verge of increasing them by 17%, further eroding our competitiveness.I am harping on and on about this, and I really want this stopped. The Minister or I do not want to see these awards increase as we know they will be passed on in our premiums. Government reforms have ensured claims are down, but we have not seen premiums come down. I urge the Minister to look at this with his colleagues, the Minister, Deputy Donohoe, and the Minister of State, Deputy Troy.
I welcome the serious commitment in the current programme for Government to attract new competitors to the insurance market, specifically the public liability one, but I do not know if the Minister knows that we have not had a new insurer in Ireland in the public liability spaces in ten years. There is something wrong. Can we not explore European insurers and see if we can trade with them? If Ireland becomes perceived as an expensive place to do business, it risks losing ground to other European and global hubs.
I recognise that the Government has committed to a whole-of-government action plan for competitiveness and productivity. The Government's engagement with the National Competitiveness and Productivity Council over a long number of years has served us well. I think the Minister is great, and he can actively see this on the ground when meeting businesses and listening to the challenges they face.
Although this is not going to sort out all our issues today, I ask the Minister to look at the few things I have mentioned. What really needs to be done to protect and enhance Ireland's competitiveness? We need to protect our local retailers. As I have said in this Chamber before, I cannot get my hair done or get my glasses renewed online. I cannot meet my friends for coffee or visit a fabulous garden centre online. Please protect our small towns and ensure they are competitive to the bigger cities by ensuring we keep car parking spaces, and keep our towns open as well as supporting active travel.
Let us also zone more land for business. Let us look at how we rate businesses. Rates are one of those things. As a rate payer myself, my goodness, we really struggle with it. Mostly, it is due to the cost. I am trying to figure out how they are actually calculated. I am also wondering where the money is going. I have said this at a local level. We should be communicating to businesses what their money is being spent on. It is a no-brainer. Let us reform the insurance market to reduce premiums and increase transparency. We should expand affordable housing and commercial space to ease pressure on wages and business rents and streamline regulations and planning, especially for SMEs navigating expansion, construction or licensing processes.
In conclusion, competitiveness serves as a vital engine for economic growth. Ireland's competitive edge has brought us this far, but to secure a prosperous future, we must confront our challenges head-on. There is no denying that I am very passionate about small business. I am at the coal face of small business, so I really want the Minister to do all he can do.
Maria Byrne (Fine Gael)
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I understand that Senators McCarthy and Keogan are sharing time,
Aubrey McCarthy (Independent)
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I thank the Minister for being here. I am a new Senator here, but I am certainly not new to business. I employ just over 40 people across the transport, hospitality and service industries. When we are talking about competitiveness, certainly, I have felt the weight, but I have also felt the potential of running companies in Ireland.
We hear much about Ireland being a hub for foreign multinationals and we are always talking about foreign direct investment. That is so important to Ireland, and it has transformed our country. We talk about the Apple millions and things like that. However, I will ask whether we are doing enough for Irish business and SMEs that were born here, have stayed here and are investing their profits here.
I believe strongly that SMEs are the backbone of the Irish economy, employing more than 1 million people. Yet few of them get a chance, and I know this personally, to scale beyond local or regional success. I feel it is because the playing field is not level because we have not put in place the right supports, scaffolding grants or investment pathways for the small Irish business to grow globally. We have done a fantastic job when it comes to larger multinationals.
Regarding the transport sector, I literally just had a meeting - we had them in the Gallery a while ago - with the Euromovers group, which is having a conference in Dublin this weekend. I have also just returned from the FIDI, BAR and IAM conferences, all of which are in the transport sector. Without exception, they are saying that insurance premiums, rising fuel costs, outdated grant systems and difficulties in trying to find operators for their business are creating serious obstacles. In my own hospitality business - I have a restaurant in Naas - we are battling soaring insurance claims again, energy prices and really chronic staff shortages. Even in that, there are little strategic supports. There were wonderful supports during Covid. There are wonderful supports for start-ups, but for SMEs that are consistently operating, there are not the same supports. In my service business, our people are working tremendously hard, but they are competing in a sort of outdated industry where increasingly the digital global economy is what it is all about and they do not have the digital tools or training to do so.
The SMEs are the real economy. If we want real competitiveness in this area, we need to make sure we have real supports. I compliment Enterprise Ireland, for example, with the competitive start-up fund, but that needs to be increased, especially regarding small and medium enterprises. Even the innovation vouchers that are given to tech start-ups could be given to SMEs. We should simplify the grant access for small and medium enterprises, which can take nearly one person's dedicated job in order to fill out all the forms. We need targeted grants, not just for businesses that are starting off or first-time exporters, but for businesses that have proven their time, kept their employees in jobs and need help in crossing a few borders. Therefore, let us cut the red tape when it comes to SMEs.
As I mentioned, Enterprise Ireland and the Department of enterprise do a fantastic job with trade missions, but they need to include ordinary businesses and SMEs, not just the tech giants. It was mentioned here recently about exporting Irish whiskey to markets such as Taiwan. We need to build bridges to Asia, the gulf and Africa and not just rely on the likes of the US, which this week threatened the 50% tariffs. The next set of tariff threats could knock us off the perch and really affect agrifood and farm exports. Therefore, while I welcome multinationals, I do not welcome our reliance on them. If Intel, for example, was to leave the likes of Celbridge or Leixlip tomorrow, it is the local businesses in the local community that will keep the economy going there. Our future competitiveness will not be founded solely on multinationals, but on the local delivery driver, the cafe owner, the removals firm and basically those who are trying to build something that is lasting. Therefore, let us help and fund them and let us believe in them. If we want resilience and competitiveness, we must empower our homegrown SME business with capital, capacity and confidence.
Sharon Keogan (Independent)
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I am glad to have the Minister here this afternoon. I am glad we are holding these statements on our nation's economic outlook and our competitiveness in succession as it really allows us to continue on from the earlier conversation we had with the Minister for Finance. When it comes to the question of competitiveness, I am sure there will be as much said on the question of how we balance regulation with entrepreneurial freedom, our taxation system, rates, efficiency and so on. However, as many of our esteemed colleagues will no doubt speak on these, for me, there are three primary things we must focus on: infrastructure, infrastructure, infrastructure.
Last month, I asked whether we would be able to build Ardnacrusha dam and power station today. My conclusion was that it was doubtful. I was happy to see earlier this week that a columnist in The Irish Times asked the same question and came back with the same conclusion. While sad to hear, it is good that we are talking about this. However, talk is not enough. We need action, and we need courage. The IBEC report makes it crystal clear that we are being strangled by a planning system that gives more weight to the whims of serial objectors than to the common good. We are one of the few countries in Europe where a single individual can hold up a nationally significant project for years. This is not democracy; it is dysfunction.
We need to rebalance the system. I support IBEC's call for the implementation of the Kelly report's recommendation. We must create alternative mechanisms to judicial reviews and empower decision-makers to correct errors without being dragged through the courts. If that means constitutional reform, so be it. The public good must come first.
Let us take the Dublin metro as a case in point. This project has been in the pipeline for more than two decades. It has been studied, restudied, planned, replanned and objected to at every turn, and where are we now? We are still waiting, still paying consultants and still stuck in traffic.Speaking of traffic, why does our national airport not have a rail link? We are the only capital city in Europe without one. To get to Dublin city, you either pay a tenner for an express bus or wait an hour for a Dublin Bus that may or may not show up. That is not acceptable for a modern nation. That is embarrassing, but it gets worse: we are now being told that Dublin may soon not have enough water to meet civilian demand, never mind the needs of data centres. Whether we like data centres or not, they are a strategic asset. They are our ace in the hole in a digital economy, but if we cannot fix the leaks in our water network or find the political will to move water from the Shannon, we will lose them, and with them we will lose jobs, investment and credibility. That would be a failure worthy of a banana republic, not the modern, forward-looking Ireland we claim to be.
We must also have a serious conversation about nuclear energy. I have raised this before and I will raise it again. We cannot continue to ban nuclear power while simultaneously claiming to be serious about energy security and climate targets. Other countries are investing in small, modular reactors. Why are we not even talking about it? While we are at it, let us talk about offshore gas. We have untapped resources off our coast. Why are we not exploring them? Why are we not using them to build a sovereign wealth fund like Norway did, to invest in our future infrastructure? We are an island nation. With Brexit we have a golden opportunity to become the entrepôtfor the EU. That means we need new ports, not just more pressure on Dublin. We should look at deepwater alternatives around the country such as Shannon Foynes, Cork, Waterford and even Rosslare. Let us spread the opportunity and the investment.
The IBEC report is a wake-up call. It tells us that we need to spend €200 billion in the next decade just to keep pace. That is not a luxury, it is a necessity. It is not just about money; it is about delivery. It is about cutting red tape, streamlining procurement and giving statutory powers to a single body to co-ordinate and prioritise major projects. We must stop treating infrastructure as a political football and start treating it as the foundation of our future, because without it we will be neither competitive nor prosperous. I welcome the national semiconductor strategy. It is something I believe the Minister will drive forward and that it will open the gates for many other global companies to come to Ireland to strengthen our tech industry.
I also wish to highlight the reversal of the Government's decision to impose a new stand-alone labelling requirement on bottles of alcohol imported into Ireland. Everyone in this House supports the responsible consumption of alcohol and wants to reduce alcohol harms, but this label will do nothing to achieve that goal. It is a misguided solo run that puts Irish jobs, producers and our international reputation at risk, all for no proven health gain. Could the Minister look at that sector? That is something we could row back on or delay for a while. I wish him good luck. He was a very progressive Minister of State in the area of local government. I have no doubt he will grab this portfolio by the horns.
Mary Fitzpatrick (Fianna Fail)
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While the Minister is grabbing this by both horns, I wish him well too. I have full confidence in his capacity to deliver in this very important Department. We are very privileged with the economy and we should not forget to appreciate and express our gratitude to everyone who works and contributes to the economy on a daily basis. We are the envy of many countries, not just in Europe but all around the world for the strength of our economy. Other economies struggled to come back post Covid but our economy came back faster and stronger and, for that, every worker in the country deserves credit.
I welcome the Government's recognition of the need to not take our position in the global economy for granted, and that we must always be vigilant and work to ensure the economy is resilient. We will achieve that by investing in it and supporting those who make the economy, create employment and ensure there is a constant process of innovation. Competitiveness is crucial for our economic development. The initiative the Minister is taking in his Department is important. I welcome the timeline he outlined in that regard today. It is helpful. There is significant interest from the sector in the work he proposes to do on behalf of the Government. Competitiveness is crucial for driving innovation, boosting productivity and attracting investment, including foreign direct investment. The latter does not just manifest in buildings and the trade figures but also in employment, which directly affects the lives of citizens – the quality of their lives, their employment and their professional development as individuals. Competitiveness enhances our ability to trade globally.
In the not-too-distant past, Ireland moved from being a closed economy but now we are on the global stage and in an open economy. That contributes directly to changing the lives of every one of our citizens - their standard of living, their life experience and life outcomes. It is important that the Government is ever-vigilant on this issue, that the new Government takes it seriously, and that a Minister has been assigned to it and is pulling together all of the stakeholders and working with a sense of purpose and urgency.
I was nominated to contest the Seanad election by RGDATA. The Minister will be very familiar with the organisation as he has been and is a supporter of small businesses. It represents more than 3,500 independent Irish retailers, primarily food retailers. My colleagues and I met representatives of RGDATA recently. They have real expectations. I believe the Minister is alive to their needs, including addressing the ever-increasing costs of doing business. Their viability as businesses is under threat because of the increasing costs associated with energy, insurance premiums and other associated regulation costs. They welcome the Government's commitment to support their businesses going forward. They need direct supports to help them tackle those costs and continue to trade as viable businesses, serving local communities, creating local employment and generating trade in their local markets. They are under very significant threat from retail crime. Globally, Ireland records the highest cost of retail crime. The average cost is estimated at €40,000 a year. That is €40,000 a year directly out of the bottom line of those small, independent Irish businesses. The initiative by the Government to establish the retail crime group and strategy and the commitment by the Minister for Justice, Deputy Jim O'Callaghan, to increase safety and reduce crime in the retail space is very important, not just for the small retailers but also for the very large retailers. I know big retailers in my area on Henry Street are engaged in this subject too.
In the remaining few minutes, I wish to talk about Dublin. I am obviously a Dub but, whatever about our selfish interest in Dublin, it accounts for more than 40% of our economic activity. We are blessed with the level of economic activity, employment and investment that is taking place here and the innovation and resilience of the economy in the capital, but we cannot take it for granted. There are a few issues that employers and business operators in the capital are calling out very clearly that they want the Government to address.
The first one is infrastructural, namely, housing. They say very clearly that housing is their number one issue. They want to see the supply of housing in the capital increase significantly. They also want to see affordable housing. In the next four years the Government has a real opportunity to introduce targeted, timebound measures for Dublin-specific housing supply initiatives.Specifically from a Dublin perspective, I would like to see targeted measures to increase supply, the affordability of homes in the capital and the acceleration of adaptive reuse. We have quite a significant commercial vacant space. Other cities have successfully adapted commercial vacant space for residential use. New York has endless examples of it. We should be pushing that and accelerating it in Dublin. The living city initiative has had very limited success in Dublin. I believe it is down to the fact the programme is just too narrow and too limited. There needs to be a review of the living city initiative to extend it, not just geographically but also fiscally, to reflect the real costs of trying to adapt vacant and derelict properties in the capital.
Under the previous Government, the vacant and derelict grants up to €70,000 were introduced. They have been hugely successful. A total of 31 local authorities have rolled them out and they have worked well. In the programme for Government there is a commitment to a €100,000 above the shop grant. That is there to reflect the additional costs involved with conversion, fire safety and building regulations in those type of buildings. If we can get that grant rolled out and available, there will be a significant take up. The Minister and I both know that the fastest and most sustainable way to increase our housing supply is to reuse the vacant properties that are already there and are connected to electricity and all the utilities.
I will mention two last things from the capital's perspective. One is the water infrastructure. Today, Irish Water was calling for an additional €2 billion investment. That funding needs to be made available. Dublin is on a knife edge with water. We need to increase the supply and security of our water. We have already been on water notices this year and we are only in May. The urgency on that cannot be overstated. On public transportation, we have come a long way from the humble Dublin Bus. It is still one of my favourite modes of transports. The Luas was a great innovation and having it extended to Finglas is very important. The metro has been talked about and talked about. We need to get on with it. This Government needs to deliver it for the capital. In tandem with all of that, public transportation needs to be affordable and safe. For it to be safe, we need the commitment that the Government has made for a public transport police to be delivered.
I wish the Minister well. The public and the citizens we serve are demanding that the Government takes competitiveness seriously and supports businesses and entrepreneurs to deliver on it because it is good, not just for our economy but also, as I said earlier, for our environment, our citizens and the overall expectation of our country.
Conor Murphy (Sinn Fein)
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I welcome the Minister. I am speed reading through the Minister's statement to try to respond to a few points on it. We had a similar conversation with the Minister for Finance this morning relating to the economic outlook statement and there is quite a lot of overlap in the issues that apply and a recognition that things do need to change and there are vulnerabilities. We were less than ten years out from the economic crash when were into Brexit, the pandemic, the cost-of-living crisis, the cost of energy crisis and now we are into the uncertainty caused by the new American Administration and the idea of tariffs and trade disruption across the world. Many of the things that the successful economy here were built on are now exposed to even more vulnerability. While the Minister rightly recognises that, in terms of competitiveness, Ireland is doing quite well, the Draghi report in Europe shows in the overall picture in Europe, to which we are not immune, that there is some catch-up to be done in that regard. I welcome that the Minister is bringing forward an action plan on competitiveness and productivity and bringing that to a summit that is to meet in July and then to be developed and published. That will be very welcome. I made the same point to the Minister for Finance this morning that we are in a space now where there must be action taken quickly. There have to be plans developed, action taken quickly and the resources attached to deliver on those plans.
I welcome the Minister's reference to developing the indigenous enterprise base because one of the criticisms or concerns about the economy is the narrowness of that, particularly relating to tax return, the narrowness of the economic base and the lack of diversity, not just of sectors but also regional diversity. That development of the indigenous base while continuing to attract investment and FDI is still incredibly important. The Minister referenced talent from abroad. Regarding investment and competitiveness, we must also invest in our own people and skills. That is not just at the high end. We do need people with PhDs and we need research and development and innovation, but we also need to make sure that, at a very base level, we improve on skills and give people a chance to become more economically active and to make more of a contribution to the growth of the economy and to productivity. Investment in talent here, in skills and in bringing people into more levels of economic activity is important. The focus on SMEs is welcome.
I saw the reference to the national semiconductor strategy and that is important. Has there been an engagement? We have one of the leading semiconductor companies not two miles from the Border with Seagate Technology in Derry, whose workforce is very largely a north-western workforce. It would be remiss not to consider a national strategy even though technically it is in a different jurisdiction, but its impact and its potential impact across the island is significant and it is a significant company. I hope there would be some consideration of that.
On the overall approach, there is a recognition that, to improve competitiveness, we need investment in infrastructure. That includes climate change and energy infrastructure. One of the critical things we are facing is the cost of energy, the impact that has on the cost of doing business today and the impact that has on the cost of living, because those costs and increasing costs are undoubtedly passed on to consumers. The ambition in terms of investment in climate change, energy and renewable energy must be about self-sufficiency, lower energy costs across the board and ensuring those big users and those who intend to be big users in the future pay their way in terms of that necessary national investment.
There are other significant challenges in infrastructure and other Senators have mentioned them. Housing is a challenge, not just in terms of the impact on our population but also on competitiveness. Other critical infrastructure was mentioned by Senator Fitzpatrick, including water infrastructure and roads. There is a recognition, not just here but across Europe, that we have fallen behind relative to people who are in competition with us across the globe. In doing that, it is a question of applying the resources that are necessary to do that, but it is also a question of a having a long hard look at what have been the failures of major infrastructure. We can cite many examples of difficulties in delivering major infrastructure projects. While the Minister for Finance referred earlier to the resource that is going to be attached to supporting that development strategy, there also must be a look at what were the barriers and what were the hold-ups. Is it planning? Is it the capacity of people who are tasked with major infrastructure projects? Is it in the Civil Service? Are there bottlenecks or constipation that are holding up major decisions on infrastructure? The investment of the resources is necessary but, equally, so are the lessons learned from past failures in infrastructure developments. Clearly, that is one of the issues that is going to help us in future in meeting economic challenges which the Minister has outlined going right back to Brexit, Covid-19 and all of those, with there being no sign and no real sense that these kinds of economic challenges are going to go away any time soon. In trying to meet that, there is a correct focus on competitiveness, but all of the things that need to be delivered to try to underpin and support that focus then are necessary.The revitalisation of town centres is important for small businesses. We need to be more supportive of businesses. That investment will undoubtedly be an investment for the future and will assist our overall capacity to improve the infrastructure of the country and provide for our citizens who live here.
In that sense - I made the same point to the Minister for Finance earlier - we have to consider the potential of the all-Ireland economy. The growth in that regard has been organic. There has been sevenfold growth since the Good Friday Agreement was signed. The ability of businesses to expand further and be supported could create even more diversity in the economic model and help to sustain us during future economic shocks that might come along by building up our own infrastructure in terms of business on the island and the hard infrastructure itself.
These are all challenges that can be met. I look forward to seeing the action plan that will emerge in the short time ahead. I apologise that I will not be able to stay to hear the response of the Minister - I have to meet the Minister for Finance again at the finance committee. Like many others, I am jumping into committee duties while continuing my dealings in the Seanad. I know from previous engagements with the Minister that, as has already been said, he is very accessible in regard to these matters. I look forward to continued discussion with him in the time ahead.
Gareth Scahill (Fine Gael)
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The Minister is welcome to the Chamber for his first visit this term. This is a topic that is central to Ireland's prosperity and future and our nation's competitiveness. When we talk about competitiveness, we are discussing our ability to thrive in a global marketplace, attract investment, foster innovation and create a high quality of life for our citizens. The good news is that Ireland continues to punch well above its weight. The Minister mentioned that the Institute for Management Development ranked Ireland at fourth globally in 2024. We remain the most competitive country in the European area. This is not just a number; it is a testament to the hard work and ingenuity of our people, to our businesses and to our strategic policy choices.
Around the world, we are witnessing growing challenges to the foundation of international trade. Tariffs, in particular, have emerged once again as a threat to our open rules-based trading system that has underpinned decades of economic growth. Let us be clear: tariffs are economically and socially destructive. They drive up the cost of doing business, reduce market access and, ultimately, place upward pressure on prices for households. Worse still, they could create a climate of uncertainty that discourages investment and stifles innovation. No country wins in tariff wars. Businesses delay investment, consumers pay more and international co-operation weakens.
My colleague has mentioned that one of the most critical areas where we need to sharpen our focus is infrastructure. While we have seen improvements, our infrastructure performance, in particular in basic areas like water and energy, continues to lag compared to our peers. I welcome what the Minister said in his opening speech on this. High electricity costs can impact businesses' competitiveness. Addressing these deficits is paramount for sustainable growth and attracting future investment.
Another area that demands attention is cost pressures. Issues such as the cost of credit, legal services and insurance can significantly impact our small and medium-sized enterprises which are the backbone of our economy. Ensuring a competitive cost environment for businesses is vital.
Competitiveness requires constant vigilance and continuous investment. Our ability to attract investment, retain talent and foster innovation is grounded in a few key advantages, namely our access to the European Single Market, our English-speaking workforce and, above all, our highly skilled and talented pool. In a world where talent is the new currency for competitiveness, Ireland's future will depend not just on the strength of our economy today but also on how we prepare for tomorrow. We must ensure that our further and higher education system is agile, responsive and aligned with the needs of a modern economy. As a member of the new artificial intelligence committee, I know that we need to prepare our workforce for jobs that do not exist but will exist and drive our economy in five years' time.
Whether it is digital technologies, green energy, advanced manufacturing or life sciences, the demand for skills is evolving rapidly. We need to double down in developing those skills and that means expanding apprenticeships, deepening links between industry and education and investing in lifelong learning to ensure workers can adapt as roles change.
Irish businesses have never lacked ambition, but in order to remain competitive and thrive we must match ambition with strategy, investment and a national commitment to resilience. Ireland's competitive spirit is strong. We have built a resilient and attractive economy driven by our talented workforce and pro-enterprise environment, which the Minister has driven, but we cannot afford to be complacent. By strategically addressing our infrastructural needs, managing cost pressures and continually investing in innovation skills, we can ensure that Ireland not only maintains its competitive edge but continues to thrive as a leading global economy for years to come.
Fiona O'Loughlin (Fianna Fail)
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It is good to have the opportunity to have this debate with the Minister. We appreciate his time because we know how busy he is and how demanding the role is. It is important that we have this discussion. It is one a number of Senators have sought. There is no doubt that we are recognised internationally as a very competitive economy, but equally it is absolutely fundamental that we do not become complacent. There is quite a bit of work to do to make sure that we can meet the many challenges coming down the line. The challenges we have had to come through over the past few years have required us to think outside the box in terms of dealing with Brexit, the pandemic and the cost of living, and facing into possible US tariffs. It is a difficult time.
People who are entrepreneurs and are investing in their businesses need to know they have the support of our Government and we are steadfast in that commitment. Senator Fitzpatrick mentioned a meeting last week with RGDATA. There were two main themes. One was the cost of doing business, which, as we know, is constantly increasing, in particular energy costs. While in the past we have provided supports and I hope we do so again, we need to make sure grants are not tied up in red tape. It is very difficult for somebody who is putting huge hours into a shop and perhaps has to cut staff in order to keep a shop open to then have to spend hours pushing a pen in order to access grants. That is really important.
Despite being aware of the issue, I was shocked by the discussion on retail crime. Listening to the stories last week and stories I have heard from businesses in Kildare of brazen shoplifting was shocking. People who have committed hundreds of offences have never done time in jail. Time after time they come in brazenly to steel goods. Businesses operate under small margins. The businesses we rely on to keep our communities, villages and towns going are local shops. When we are driving home after a late night we want to call into such shops and be able to get a pint of milk, a sliced pan or whatever. We have a duty to support such businesses. We have had a conversation with the Minister, Deputy O'Callaghan, on this issue. We have to do what we can to protect those businesses because not alone do they provide an excellent service to all of us in terms of goods, but they also provide raffle prizes for community games and local sports clubs.
An accelerated development of a new whole-of-government action plan on competitiveness and productivity has been announced. The plan will identify concrete and actionable reforms across every Department to enhance the competitive edge that we have internationally and in our domestic economy. While our economy is resilient and we have full employment, there are significant challenges. There are labour market constraints and infrastructure development issues. That is why it is important to acknowledge the forthcoming review of the national development plan and the plan for the new accelerated infrastructure task force launched by the Minister, Deputy Chambers, last week.For example, I spoke to a small business the day before yesterday about our new free schoolbooks scheme, which is great. When it was introduced, the then Minister for Education emphasised that local shops, the ones that had always supplied the schoolbooks, should still be able to supply them. However, I understand that there is now a big player in the market that is selling below cost and trying to take all the business. We should be introducing proactive measures to ensure the small shops and businesses can continue to provide schoolbooks to our children. The initiative is great but we need to ensure we do not lose out.
I am aware that there will be a ministerial summit in July. It is important and we look forward to having a debate with the Minister after it. The establishment of a dedicated small business unit is to be very much welcomed.
Maria Byrne (Fine Gael)
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I welcome the sister and nephew of the Ceann Comhairle - Martina and Colm Murphy - to the Gallery. They are both very welcome. I hope they enjoy their visit to Leinster House today.
Seán Kyne (Fine Gael)
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I welcome the Minister and thank him for coming to the Chamber today to discuss the important issue of competitiveness. I wish him well in his portfolio.
It is safe to say the economy is strong and the employment statistics are very strong; however, as others have said, we must not be complacent. The threats from global uncertainty and tariffs from the United States have to be taken seriously. I am aware that the Minister has had a number of trade missions. The St. Patrick's Day visits, although sometimes frowned upon, play a very important and beneficial role in reaching out across the world, including to the US in this instance.
Competition and competitiveness are important. I welcome the fact that Ireland was fourth in the IMD world competitiveness ranking in 2024 but, as the Minister has said, we must not be complacent and should always aim to be ranked one higher or at least maintain our existing ranking. In that regard, the measures Deputy Burke has taken since becoming Minister have been important. They have been important in sustaining small businesses, including in relation to the timeframe for the implementation of the living wage, which was extended. Further changes to statutory sick leave have been postponed and we are keeping our statutory sick leave entitlement at five days. It is a matter of providing certainty to businesses, which were crying out for it with regard to certain issues, including auto-enrolment.
I acknowledge the commitments in the programme for Government on competitiveness. My colleague Senator Linda Nelson Murray has touched on the importance of insurance and insurance reform, on which Fine Gael will have a Private Members' motion in two weeks' time.
There is the competitiveness of the country as a whole but there is also the competitiveness of different regions. Coming as I do from Galway, I believe the challenges and pressures there differ from those that may exist in the Minister's home area, Mullingar, and elsewhere. The review of the national development plan will be so important to the future development of the country, including rural and regional areas.
Others have touched on the investment that is necessary in Irish Water and the use of the Apple tax, as long as it is available, to deliver accommodation. The shortfall in accommodation is part of our competitiveness weakness and it is a genuine issue. It is important to be cognisant of it if trying to encourage expansion and future investment in the country,. The Minister is cognisant of it, as indeed are we.
For several years in Galway, we have had ownership of the old Galway Airport site. It is in the ownership of Galway county and city councils. There has been a lot of talk about the plans for the 118-acre site. There has been a lot of discussion about a master plan for it. The latest soundings seem to indicate it may be offered for sale to the Department or IDA Ireland for future investment in the region. I wanted to draw the Minister's attention to that but I am sure he is aware of it. We know about the importance of having land banks. The Minister has mentioned this here. The airport site is a land bank. If the intention is to dispose of the property, it would have to be subject to councillors' approval. The site is too valuable to be left in limbo. If it can be used in full or in part for job creation, that should be explored.
I welcome the Minister's commitment on the programme for Government commitments on the action plan for competitiveness and I also welcome the fact that he has brought this forward. It will be dealt with solely within his Department. Although he will be liaising with other Departments, it is important that it be under one Department. The Department of business is the obvious place for it. The Minister, although he will be liaising with the other Departments, will be ensuring the measures are fast-tracked, approved by the Cabinet as quickly as possible, and subsequently implemented.
The Minister should look back to the successes of his predecessor's action plan for jobs. Thankfully, we do not need an action plan for jobs at the moment but that is not to say we should not be thinking about job creation and maintenance in the future. An action plan for competitiveness would be very welcome. I wish the Minister well in his role in the years ahead.
Dee Ryan (Fianna Fail)
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The Minister is very welcome to the Chamber. I am delighted to be speaking to him today because I know he gets it. I know from industry and enterprise perspectives that he is well informed. I wish him success in his role and thank him for his opening remarks. I was really pleased to hear about the action plan for competitiveness and productivity and that the Minister is not only considering the vital area of the SME sector, which is indeed our largest employment sector, but also recognising the crucial role multinationals and large-scale indigenous businesses play in driving our economy. Without these large businesses driving our economy, there would not be a trickle-down effect, work to be done in the SME sector, and money to be spent in the retail and hospitality sector. While each area is precious in terms of employment, vibrancy and animation, we must recognise the crucial importance of the larger companies as the drivers and engine of our national economy.
I was really pleased to see the emerging themes the Minister is addressing in the action plan. I want to raise with him today the importance of energy and having a sustainable supply of it. With regard to our national competitiveness and ongoing enterprise, I also want to raise the need for Ireland to attract foreign direct investment and the issue of our own companies scaling up and selling. There is a need to supply green energy to companies in the future. The Minister is interested in the offshore renewable energy sector as a sector in its own right that will provide employment and stimulate investment in our ports and coastal towns and villages but also as a sector that will attract big, high-energy-use companies in the manufacturing and industrial sector to Ireland owing to the endless supply of green energy we have off our west coast.
As the Minister will know, I was a member of the Shannon Estuary Economic Taskforce. I am very familiar with our potential to have floating offshore wind energy infrastructure off our west coast, but I really fear that this message, delivered very clearly by the task force in 2023 and reiterated by organisations such as Wind Energy Ireland, is not reaching those it should. As recently as today, I met a Valentia development group seeking to develop floating offshore wind infrastructure in their area. My fear is that the message stressing the importance of zoning the deep waters off our west coast for the DMAP is not reaching the Department or getting through to its officials. The Minister might liken the approach being proposed right now – which is to zone the rest of the Irish waters all together and include in these what should be the priority area, the area off our west coast, where the winds are strongest – to peeling your potatoes and putting on your peas at the same time as warming up your oven to put in the chicken.We are not going to be ready - dinner is not going to be ready on time - if we leave the most important component and area for zoning for floating offshore wind until the very end. I am therefore delighted to see the Minister's interest in this because it is an enterprise issue, not just an energy or environment issue. It is critically important to us and our national economy and I am delighted the Minister is factoring this into his work.
Peter Burke (Longford-Westmeath, Fine Gael)
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I thank all nine Senators for their contributions.
I appreciate the eight areas Senator Nelson Murray focused on in her contribution. She quite rightly pointed out we have a significant employment in our economy. At this point in time, we have put an additional 90,000 jobs into the economy in the past year. That is and additional 90,000 families with an income. We are trying to improve conditions to allow and give everyone the opportunity to realise their potential. Jobs are the best way forward, particularly high-value jobs in our economy, which we have done a huge amount of work on. Regarding broadband, I will raise the point with the Minister for communications. Much work has been done with our broadband plan. In many rural areas, there are better broadband speeds now than in the heart of Manhattan, but there are challenged areas. We appreciate that but I do believe the plan is on track and there is a huge amount of opportunity there to potentially accelerate it under the national development plan, which is currently up for negotiation.
The Senator raised vital issues regarding town centres and zoning relating to planning infrastructure which is very important. Those themes of housing, water, energy and competitiveness can be seen in the national development plan, are recurring themes and are important priorities for the Government. If everything is a priority, nothing gets done, but we need to focus on those key areas. I look forward to the Senator's Private Members' business on insurance. I imagine the Department of Finance will be responding to it but the Senator is quite right in that we must ensure we are getting delivery from the insurance sector. As a Government, we have done approximately 90% of the reforms at this point but we have not seen the response on the other side of the table, and this has been a significant challenge, as Senator Murray quite rightly pointed out. I have raised the rates issue with Minister of State, Deputy Cummins, and any additional cost in that regard is concerning.
The Senator quite rightly pointed out that one critical thing is getting people. We are an economy with 2.81 million people working right now. We are at full employment. The big challenge of the future will be upskilling people, ensuring we are future-proofing our economy and that skills keep pace with the changing nature of work practices. I thank the Senator for all her effort in those areas. I will do my best to make grants more user-friendly, because we know businesses' time is their most vital resource. Through our cost of doing business advisory forum but also, critically, through our small business unit in the Department, we will really focus on lowering the criteria for several grants for our SMEs. We see, whether it be sustainability or the energy efficiency grant, that there is independent data which shows you can reduce your energy bill by up to €1,500 per month through sustainability measures, such as refrigeration, LED lights and kitchen upgrades. This has an impact on businesses because you are not taking that money off them. That is going to be important for the future.
Senator McCarthy raised several important points on infrastructure. One thing I will point out is we are backing our SMEs and our indigenous economy. One thing people often forget when we talk about multinationals, especially if we look at semiconductors, is there are many big operators in this country. Analog Devices came to these shores in 1976, followed by Intel in 1989. We currently have 130 significant companies in operation in Ireland and half the global supply chain is here in Ireland, with some a generation ahead of our European counterpart.
On trying to apportion research, development and innovation grants from either the IDA or Enterprise Ireland for those particular companies, I know of one company that has approximately 840 SMEs on its books that it deals with every single year. That is from Banagher Precast Concrete to Kiernan Structural Steel in a very remote part of the country where these businesses are getting value. One thing we are trying to do is close the eco-cycle with multinationals and local small businesses. I also remember being in Ballinasloe at a local printing company where the owner - the managing director - told me he employed local people there and that he printed all the labelling that goes into the bottles of medication produced in the life science company down the road. This again shows how we are closing the cycle. This so important but we need to do a huge amount of work in that area. This is why I push the IDA and Enterprise Ireland to work closer together with supply chains which can really provide much value for our indigenous businesses.
Senator McCarthy also raised issues relating to insurance and energy. Energy is a common theme among many of the speakers today and, quite frankly, we need to invest more in the next decade in energy than we have since the inception of our grid. This is a very significant statement but that is what is going to be required. We have generation points but we do not have the infrastructure to get the energy around the country. We are going to treble our interconnectivity this year, through both interconnectors with the UK and the one to Brittany from Cork. For generation, we also need the arteries to be able to get that power around the country.
We are bringing forward a large energy user policy on behalf of the Department which gives certainty to the sector. Like many European capitals, we have pinch points at present but if we can say to businesses to work with us and we will get them there, we will have a period where there is tight capacity but a significant pipeline opening from 2029 to 2030 and beyond. We use approximately 6 GW as a country. Figures like 37 GW over the next two decades would be very significant. We have a huge opportunity to deliver those 5 GW by 2030 in offshore wind, 9 GW in onshore wind and 8 GW in solar energy, which will be very significant. We must ensure those five projects for offshore wind on the east coast get planning permission. I was involved in bringing forward the planning and consent regime in the previous Dáil which is there to support this, but we need to see them on the ground. This will be important for us. Senator McCarthy also raised tariffs and other issues which will be critical in getting a deal in that area.
Senator Keogan quite rightly pointed out infrastructure is going to be a key focus and we have the review of our development plan. As she said, IBEC said about €200 billion and I believe we will not be far off that figure in the next decade. This is the type of infrastructure we absolutely need because we must do things simpler, lighter and faster as a country and we need to be laser focused on that. If we do not, we will be left behind in the race for competing to have a strong value proposition as a country, and this will be critical in the time ahead. The review of the capital plan is ongoing. Ministers are having their bilaterals with the Department of public expenditure, which will be critical at this point. I share the Senator's views on judicial reviews and the public good. They are critical. We need to get the new planning Bill commenced and fast-tracked to ensure it can have its say. Trying to get statutory deadlines into An Bord Pleanála will be important in delivering infrastructure. We cannot have situations where people are waiting months or years for decisions. That is not acceptable in a modern, agile economy. We must ensure this does not happen.
As I said, regarding data centres, we will have our large energy user policy, which we discussed at our Cabinet committee on Monday and it is hoped it will be brought forward. We have more work to do on it but we will bring it forward in tandem with the national development plan review as well as the huge amount of infrastructure that will be required. The point about airport connectivity being significant is quite right. Again, as I mentioned, water, energy, housing and competitiveness are key areas of importance. With regard to alcohol labelling, the Senator raised the valid point that we need to move with Europe and that is the critical thing. When you go it alone, there are always risks to your competitiveness and this is a fair point.
Senator Fitzpatrick raised many issues relating to retail crime, which we are doing a huge amount of work on through the Minister of State, Deputy Dillon, and his Department is doing exceptional work on retail crime and bringing all our retailers together. We are working through the defamation Bill, which is on Committee Stage, and through capital allocations to support security allowance and infrastructure that is needed. Operation Target is bringing in data in the work it is doing but we need additional boots on the ground and more support. I addressed the Convenience Stores and Newsagents Association, CSNA last night and listened to its views on all the areas we need to improve on. We are working with all these areas to try to make inroads which will be important. The Senator also mentioned the key areas in Dublin in infrastructure, housing, water and energy, which are, again, the common themes that are coming across.
I thank Senator Murphy for his contribution and the key areas he raised surrounding trade, the Draghi report and the Letta report. These are two key areas we are trying to embark upon with the competitive compass in Europe and to improve our infrastructure. Critically, we are at the fourth omnibus piece of legislation through Europe. We have taken approximately 80% of small businesses out of CSRD and CSDDD, which will make a huge impact.We are doing the same work on digitalisation and all those areas. We will have a second review of the Chips Act. We need to be focused on how we can make it easier to access European funding and European support and hold the President of the Commission, Dr. Ursula von der Leyen, to account for her commitment at the start of the new Commission to "Simpler, lighter, faster." We need to try to improve on all those areas and ensure that regulation is proportionate and that it accelerates innovation, rather than doing the reverse. We need to ensure reports that regulators do not use and no one reads are not being compiled. That will be critical, in a European context, in the future.
On the talent issue, IDA Ireland is clear. Its mandate now is to upskill 40,000 people over the next five years of its strategy from its 300,000 base. That provides a challenge. As Minister, every week I get collective redundancy notices in. People might be surprised at that when we have full employment but there is a common thread to those notices. One can see jobs that are at risk through the dawn of digitalisation and artificial intelligence, AI. That is why we need to be able to capture and upskill for that next opportunity or next wave, and that is about having the infrastructure and energy. Generative AI, according to one estimate, takes up 2% of global power. That shows how much energy infrastructure is needed to absorb that huge digital ambition that is out there. It will be so important in the years ahead to work on that and ensure we capture it.
Senator Scahill spoke of the grid and energy. The Senator is absolutely right. He spoke of lowering the costs for small businesses. We have taken a number of decisions to do that. In my first month as Minister in the previous Dáil, in enterprise we brought in an SME package, trying to reduce PRSI and trying to ensure that we doubled the innovation voucher and provided more loan finance and working capital finance for SMEs. We had three rounds of the increased cost-of-business grant for retailers. Approximately, half a billion euro went into them, trying to help and assist them and trying to lower the cost base, bring down regulation and give them certainty. Businesses just want to be left alone, to be given certainty and not to have too much regulatory requirement and red tape pushed on them, and that is what we are trying to do. That is why we have changed the focus of the Department. We need to look at SMEs, smaller family businesses run by people who work around their kitchen table at night. They have no HR department or finance director; it is all on the kitchen table. We really want to support them. They employ two thirds of all workers in our economy and drive so much of that economic activity at the heart of our communities and we are focused on protecting them in the months and years ahead.
Senator O'Loughlin quite rightly raised energy as well and the cost of doing business. In addition to these key areas, the Senator raised some of the initiatives the Government needs to have in the public spending code to help our retailers. One is precluded in many areas by tender law. It can be difficult to ensure that local businesses get that opportunity but we will do everything we can in that area.
I thank Senator Kyne for his comments and wish him well as Leader of the House this term. The Senator quite rightly pointed out that businesses need certainty. We took a number of decisions in that way. It struck me that when wage growth in our economy was 3.5% or 4%, the Government was coming forward with minimum wage increases in excess of 10% or 11%. If the Government is cheerleading wage growth in our economy, that is not sustainable. It is a bad place to be in. We need to ensure wage growth is ahead of inflation. It is at present. It is more manageable if we act sustainably, keep businesses viable, keep growing employment and keep certainty for businesses and we have done that, in a fair manner, I believe, over the past number of weeks.
I will raise, obviously, the issue of the Galway Airport site, which is very important. We hope to have a very significant announcement for the constituency of the Senator with regard to one big area going to Cabinet in the coming weeks. There are many good areas that we can go after as a country. It is important that we get that regionalisation issue well and ensure that we are getting good, high-quality jobs in the west.
I thank Senator Dee Ryan for her comments. Obviously, I worked closely with the Senator in the chamber in Limerick when she was at the helm down there. I wish the Senator well in her term in the Seanad. She rightly focused on what the Minister, Deputy Chambers, has pointed out as housing, energy, water and competitiveness. Those are the areas that the national review of the capital plan will be focused on and it is critical that we deliver. What can be difficult for us all in politics is listing or naming every project in a capital plan. International tenderers will not take us seriously if we have hundreds of projects ongoing at the one time. We have to be clear on what we can deliver as a country. A critical question to ask will be what Ireland cannot do without in the medium term. What would we die in a ditch over if it is not delivered for our economy? What do we need but can manage without at this point in time? Those are difficult questions to answer but if we are to be taken seriously by those who tender, and in the context of delivering projects, we need to focus the resources we have in Departments on specifically addressing these deficits and going after the key projects that will make a difference and will attract the next big multinational here. That will support the growth in SMEs and close that cycle such that you can have both working hand in glove together, which will be so important. The Minister, Deputy O'Brien, made an announcement regarding trying to progress the designated maritime area plans, DMAPs. That is so important in terms of the trajectory - trying to get to the west coast and getting innovation that will deliver in a challenging environment on the west coast. There is huge opportunity but there are challenges in terms of getting the innovation and construction that can deliver that. That is what we had in our Department. Our role was to produce Powering Prosperity. It contains 50 actions, which are almost complete, to build up resilience in supply chains. Obviously, our ports will be challenged. I refer to Cork, Foynes and all those areas where we need to ensure we can bring in the infrastructure that will be required as we embark upon this exciting chapter of having a huge amount of green, clean energy which will be important for our future.
I thank all the Senators for their contributions and look forward to working with them. I look forward to hearing their views on the action plan for competitiveness and productivity when we publish it.
Garret Ahearn (Fine Gael)
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I thank the Minister. I welcome guests in the Chamber - guests of mine, actually. They are: Aidan Hanrahan, Brian Harrington, Donagh Tarrant and my brother, Liam Ahearn, who is up here this evening. I have told Liam to be on good behaviour today. He is the last one on the right.
Garret Ahearn (Fine Gael)
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He wins the competition. We were having a discussion about businesses. We have in the Gallery a very good business owner from Cork, Donagh Tarrant, who would have been interested in the contributions.