Bernard Durkan (Kildare North, Fine Gael)
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Question 161: To ask the Minister for Finance when his attention was drawn to the fact that some sectors in the economy were suffering from or creating costs which were likely to affect the competitiveness of the economy; the steps he will take to address the issues; and if he will make a statement on the matter. [28442/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Since becoming Minister for Finance my specific attention has been drawn to the fact that Ireland has been losing competitiveness for some time. In fact the loss of competitiveness and the need to improve it is one that is a constant theme of the Government in recent years. Up until last year, prices grew faster than those in the euro area, while wages grew at a rate greater than productivity would justify in some cases. These developments have left Ireland vulnerable in our international markets in the midst of the collapse in global demand. Nonetheless, consumer prices have adjusted quickly downwards over the last six months. In addition, we are also seeing the benefits of our labour market flexibility: all available evidence points to recent downward pressure on wages in the economy.

The European Commission forecasts that Ireland's unit labour costs will fall by -4 per cent this year, against a rise of 3 per cent in the rest of the euro area. Our economy is rapidly adapting to changed circumstances as we witness prices and wages falling. A substantial improvement in Ireland's competitiveness will place us on a much better footing for when global growth resumes.

Bernard Durkan (Kildare North, Fine Gael)
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Question 162: To ask the Minister for Finance if he has satisfied himself regarding the adequacy of the resources available to his Department to carry out the necessary evaluation of performance and cost in both the public and private sectors with a view to improving competitiveness in the economy; and if he will make a statement on the matter. [28443/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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My Department must, as is the case for all Departments, operate within available resources, both in respect of staffing and other provisions. However, I am satisfied that the resources available to enable my Department to carry out the necessary evaluation of performance and cost in both the public and private sectors with a view to improving competitiveness in the economy are appropriate. The Department continually keeps under the review the prioritisation of resources.