Pat Breen (Clare, Fine Gael)
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Question 57: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the assertion of the Competition Authority that the problem of the Republic of Ireland's higher cost base is a much more long-term threat to the competitiveness of retailers, suppliers and all businesses here; the action she is taking to lower the business cost base here; and the action she is taking to tackle energy costs to business; and if she will make a statement on the matter. [27523/09]

Michael Noonan (Limerick East, Fine Gael)
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Question 59: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the International Monetary Fund view that Ireland is the most expensive country in the eurozone for business; and if she will make a statement on the matter. [27579/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 91: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which she has identified the manufacturing or service costs currently causing or expected to cause market difficulties for Irish manufactures or service providers on international markets; the steps she will take to address such issues; if an evaluation has been carried out as to the beneficial impact in the event of bringing such costs into line with those in competing jurisdictions; if she has received submissions from the manufacturing or service sectors in this regard; the action she has taken or proposes to take; and if she will make a statement on the matter. [27513/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 129: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the action she has taken or proposes to reduce manufacturing costs here; and if she will make a statement on the matter. [27998/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 135: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has identified the main obstacles to economic growth within this economy with reference to comparison of costs with those in other competing jurisdictions; whether the costs relate to energy, transport or other elements; her plans to address these issues; and if she will make a statement on the matter. [28004/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 57, 59, 91, 129 and 135 together.

A number of recent reports have referred to the need to restore competitiveness and in particular cost competitiveness. These include the IMF, OECD, the National Competitiveness Council and the Competition Authority. One of the immediate policy objectives with regard to competitiveness is to restore our cost competitiveness. This is a key action set out in the Framework for Economic Renewal. We are aware that strong domestic demand in recent years led to significant increases in the costs of doing business in Ireland. However, the economy is now undergoing a radical adjustment which can lead to the necessary change required to restore external competitiveness. As part of this process there are a number of factors which can influence our cost base.

Firstly, Irish inflation declined by 4.7 percent in the year to May 2009, the sharpest fall since 1933. Inflation fell significantly across most goods and services groups in 2009. Secondly, the Government have stepped in to exert downward pressure on prices and costs. Although it has been a painful adjustment, the reduction in unit labour costs delivered through public pay reform will strengthen our longer term competitiveness.

For most exporting firms, labour costs account for over half of their input costs. While Irish wage levels are moderate when compared to other high income economies, wage inflation in Ireland has been running at up to 50 percent higher than the eurozone average during the 2005-2008 period. More recently, nominal wage growth has slowed and is likely to fall in 2009. The EU estimates that Irish unit labour costs will fall by 4% this year, compared with a 3% increase in the EU on average, translating into a significant improvement in competitiveness.

Thirdly, in line with the commitment in the Programme for Economic Renewal, we will implement the recommendations of the Competition Authority and tackle excessive costs in the non-traded sectors where they can best contribute to overall competitiveness.

Fourthly, we are working to bring costs in administered sectors of the economy under control such as local authority charges and also easing the administrative burden that regulations can create. Minister Gormley and I have met with the County Managers regarding actions that local authorities can take to ease cost pressures on business and we plan to meet with them again shortly.

Across Government there is a concerted approach to eliminate structural rigidities that have contributed to high costs. The current initiative to legislate against upward only rent reviews is a further example of this cross Government effort.

Finally, with regard to energy costs for businesses, 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 a further easing of cost pressures for businesses. I will continue to work closely with my colleague the Minister for Communications, Energy and Natural Resources to ensure that we continue to exert downward pressure on energy costs.