Written answers

Wednesday, 28 September 2005

Department of Enterprise, Trade and Employment

National Competitive Council Report

9:00 pm

Photo of Gerard MurphyGerard Murphy (Cork North West, Fine Gael)
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Question 149: To ask the Minister for Enterprise, Trade and Employment his views on the recently published annual competitiveness report of the National Competitive Council; and if he will make a statement on the matter. [25040/05]

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 160: To ask the Minister for Enterprise, Trade and Employment the measures he intends to take to remedy Ireland's weakness in the area of competition policy as identified by the National Competitive Council's annual competitiveness report; and if he will make a statement on the matter. [25037/05]

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 180: To ask the Minister for Enterprise, Trade and Employment if he will report on the recently published annual competitiveness report; the steps he intends to take to address the issues raised in the report; and if he will make a statement on the matter. [25442/05]

Gay Mitchell (Dublin South Central, Fine Gael)
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Question 192: To ask the Minister for Enterprise, Trade and Employment the measures he intends to take to remedy Ireland's weakness in the area of ICT as identified by the National Competitive Council's annual competitiveness report; and if he will make a statement on the matter. [25038/05]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Question 208: To ask the Minister for Enterprise, Trade and Employment if he has received the annual competitiveness report of the National Competitiveness Council; and if he will make a statement on the matter. [25347/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 149, 160, 180, 192 and 208 together.

The answer to these questions has previously been addressed in my answer to Question No. 139. The National Competitiveness Council's, NCC's, annual competitiveness report 2005 benchmarks Ireland's competitiveness relative to our 15 main trading partners and competitors using a compendium of 170 indicators. The indicators contained in the report are published by a wide variety of international sources.

The NCC's annual competitiveness report is published separately this year while the council expects to publish its annual competitiveness challenge in late October. That document, which will draw on the analysis of the annual competitiveness report, will highlight the main challenges facing the Irish economy and policy options required to meet them. The NCC provides a valuable input to the formation of Government policies through its work on competitiveness benchmarking as it highlights where the economy is strong in competitiveness terms but also warns us about competitiveness issues. Upon publication of the competitiveness challenge the Government will give careful consideration to the policy recommendations proposed by the council.

The NCC highlights some important indicators of robust economic performance that show that we have broadly implemented the right mix of policies. In 2004, the number of people in employment in Ireland grew strongly with almost 1.9 million in employment by the end of the year. Consumer inflation stabilised and in fact by mid-2005 Ireland's rate of inflation was below the euro zone average. Government finances remained healthy and our investment in infrastructure as a percentage of GDP is approximately twice the EU average at 5%. Ireland remains highly competitive in terms of taxation with Ireland ranked first for both personal and corporation taxes. The report also shows that Ireland has performed remarkably well in terms of growing national incomes. The indicators reflect that living standards in Ireland both in terms of GDP where we are first out of 15 and GNP where we are sixth out of 16 have grown significantly.

However, despite these notable successes the NCC's annual competitiveness report highlights several areas where Ireland's performance can be improved. However, it should be noted that the council acknowledges that given the differing economic, political and social goals of various countries and their differing physical geographies and resources it is not realistic or desirable for any country to seek to outperform other countries on all measures.

I have noted the NCC comments in relation to competition policy and I reaffirm the Government's commitment to removing unwarranted constraints on competition in the economy. In relation to ICT, this sector is a vital component of the Irish economy accounting for 82,100 jobs and 17% of total value added in industry and services. The Government recognises the importance of this sector and is currently undertaking significant investment in the roll-out of broadband through the metropolitan area networks and the schools broadband programme.

I draw some very strong conclusions from the report and in particular recognise its importance as an input, which should inform the forthcoming partnership talks. In the context of concerns about the pace of growth in labour costs, wage moderation combined with a renewed emphasis on increased productivity levels will be critical in maintaining national competitiveness. This is at the core of the NCC message and I look forward to the council's specific policy recommendations in these areas when the council produces its competitiveness challenge report later in the year.

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