Bernard Durkan (Kildare North, Fine Gael)
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Question 76: To ask the Tánaiste and Minister for Finance if in view of the recent criticism by the EU in regard to Ireland's competitiveness he proposes to take financial initiatives to address the issues raised; and if he will make a statement on the matter. [7707/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I assume the observations referred to are those contained in the recent Recommendation for a Council Opinion on the updated stability programme for Ireland, 2007 — 2010, where the European Commission commented on the recent deterioration in our export competitiveness. This deterioration has primarily been brought about by productivity growth here not keeping pace with price developments.

The Government recognises that, in a small open economy such as Ireland's, it is imperative that sustainable export growth is maintained. Such growth can only be realised through ensuring that our economy and exports, in particular, remain competitive.

In this regard, this Government has been pursuing, and will continue to pursue, a number of policies which will underpin the future competitiveness and growth of our economy, including a firm commitment to responsible budgetary policies. Successive Governments, building on the strength of Social Partnership, have implemented policies which are aimed at rewarding both work and enterprise through maintaining a low tax burden on capital and labour. Furthermore, the continued rollout of the National Development Plan (NDP) remains a key priority for both myself and the Government as a whole. The investment in capital provided for in the NDP is helping to eliminate infrastructural bottlenecks, which hinder economic efficiency, and is also enhancing competitiveness.