Jack Wall (Kildare South, Labour)
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Question 125: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views in relation to the submission (details supplied); her plans to address the issues raised; if she will accept the two proposals; and if she will make a statement on the matter. [26278/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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The issues raised in the submission do not fall directly under the remit of my Department. However, the overall cost of doing business in Ireland is a particular concern of mine and of the Government.

The issue of rent reviews lies within the remit of the Minister for Justice, Equality and Law Reform, Deputy. Dermot Ahern. In relation to the Labour Party Bill dealing with the review of commercial rents, I understand that my colleague the Minister for Justice, Equality and Law Reform will shortly introduce a legislative provision which will, in effect, prohibit upward-only rent review clauses in future leases.

Rates legislation is a matter in the first instance for my colleague, the Minister for the Environment, Heritage and Local Government, Deputy John Gormley. The Minister, Deputy Gormley and I have met with and impressed on local authority managers the concerns of Government in relation to costs for enterprise, including local authority costs, and asked them to consider measures to support new or existing enterprises in their area by, for example, reduced development contribution rates, or deferral of payments. I am aware that the Minister, Deputy John Gormley, has asked local authorities to give every consideration to businesses in adopting the Annual Rate on Valuation, and I welcome the fact that the average increase on local authority rates in 2009 was 1.15% with many rating authorities introducing no increase this year.

However, I am also very conscious that current trading conditions for companies are difficult and challenging due to a number of factors including the devaluation of sterling, tough competition, and the global recession. Some issues are outside the control of Government as a whole, but where possible we are addressing Ireland's cost competitiveness as an essential element of our economic recovery, as well as supporting enterprises in more direct ways such as through the Enterprise Stabilisation Fund.

Already there are indicators in our favour with inflation, commodity and other prices falling. The latest Consumer Price Index figures are an indication of falling Irish prices in a number of areas, with Ireland showing the highest cut in prices across the EU bringing Ireland closer in line with average EU prices.

I am conscious that energy costs for businesses in Ireland are a source of concern, particularly as businesses are attempting to cut costs to remain competitive in the current economic environment. However, in recent months, the trend of energy prices has been downward with a 10% drop in electricity prices for residents and small and medium enterprises from 1 May, while gas prices have reduced by an average of 12%. These reductions will result in further savings for businesses, particularly in the SME sector. We are committed to maintain low business taxes and a favourable regulatory environment, and will ensure that our policies keep pace with the way business is changing.

The Government is focused on the factors that will drive our long-term competitiveness. Our policies to improve competitiveness have a long term strategic objective which will restore confidence to the business community. Implementation of the actions included in the Smart Economy framework will continue to enhance and improve our competitiveness in this respect.