Paul Kehoe (Wexford, Fine Gael)
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Question 234: To ask the Minister for Enterprise, Trade and Employment his views on the comments of a person (details supplied), that the drift in Government enterprise policy, as well as proposals to introduce intrusive corporate regulations into legislation, could combine to damage Ireland's ability to attract US investment and ensure a return of the country to the ranks of Europe's most impoverished nations; and if he will make a statement on the matter. [39508/05]

Micheál Martin (Cork South Central, Fianna Fail)
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I am aware of the comments attributed to this person, which were circulated in the media. The policies of this Government are tightly focused on maintaining and strengthening the good health of our economy. The enterprise strategy group's analysis of national enterprise policy recognized that we are broadly implementing the right mix of initiatives and policies to maintain economic growth. Where the group suggested policy refinements or enhancements these are being implemented in a progressive implementation process. Sustained economic growth, above the growth rates of our peer group within the most advanced economies of the EU, and the consistent expansion of employment and the labour force is tangible evidence that enterprise policies are delivering economic prosperity.

One of the strengths of the Irish business environment over the last decade has been the light administrative and regulatory burden faced by businesses, compared with other, particularly EU, countries. This is illustrated by the National Competitiveness Council annual competitiveness report 2005, which indicated that the level of regulation in Ireland is relatively low — Ireland ranks in fourth position out of 16. The report also states that current regulations do not significantly inhibit product market competition in Ireland while the efficiency of competition legislation in Ireland is regarded as average, coming eighth of 16.

Nevertheless, it is recognised that regulatory compliance requirements for business are rising in Ireland due to the increased levels of EU and domestic regulations coming on stream in the area of corporate governance. However a high standard of corporate governance increases investor confidence and supports the operation of financial markets. One of the concerns required to be examined by the Government is the impact recent laws relating to corporate governance are having on entrepreneurs and start-ups.

In July of this year I announced the establishment of a new small business forum to look at the environment in which small business operates in Ireland. This group will examine whether the strategies being followed to support and develop the spirit of entrepreneurship in Ireland are effective and appropriate and is also looking at regulatory burden on small businesses. This group is scheduled to report back to me in March 2006.

Also, in July the Taoiseach announced the establishment of a new business regulation group to tackle regulatory and administrative burdens faced by the Irish business community. The group, which is independently chaired by Donal De Buitléir of AIB Group, is composed of senior business leaders, public sector members, Departments, agencies and regulators. It will report to me on problems arising from outdated, inefficient or disproportionate regulation affecting business and has been operational since November 2005.