Bernard Durkan (Kildare North, Fine Gael)
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Question 141: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans to take any specific steps to improve competitiveness in the economy; and if she will make a statement on the matter. [11681/10]

Bernard Durkan (Kildare North, Fine Gael)
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Question 142: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she has taken to improve competitiveness in the economy; and if she will make a statement on the matter. [11682/10]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 141 and 142 together.

Ireland has consistently been regarded amongst the most competitive economies in the world for supporting enterprise. Reports such as the 'IBM Global Location Trends Annual Report 2009' that was published in October of last year ranked Ireland 1st for attracting FDI on a per capita basis. They listed our key strengths in services and R&D as the reason for topping the list. Similarly, the World Bank's 'Ease of Doing Business 2010' ranks Ireland 7th out of 181 countries, unchanged from a year previously. In January of this year, Ireland was ranked the third most globalised nation, according to an index published by Ernst & Young at the World Economic Forum in Davos. The index is measured by a country's openness to trade, movement of capital, exchange of technology and ideas, labour movements, and cultural integration. Even though we face significant challenges, it is important to point to these enduring strengths. Ireland is still recognised as a prime location for enterprise to develop.

Many International Agencies have supported Ireland's decisive action to bring Government spending into line and to stabilise the banking situation, and believe that we are on the right track. Importantly too the international funding markets have shown their faith in the Irish economy by lending at improving interest rates. In parallel to these fundamental steps, the Government has also moved to improve our competitiveness. A number of areas are being prioritised, including labour costs, government controlled prices and costs, minimising the regulatory burden and increasing the level of competition in our economy. Business costs have fallen: wage bills, asset prices, energy and prices in general have responded to the effects of recession and corrective government action. Competition in key sectors of the economy is being intensified.

The Consumer Price Index fell by 3.9 per cent in the twelve months to January 2010. The HICP - the harmonised European measure - fell by 2.6 per cent to December 2009, the largest decline in the euro area. This narrowing in the differential in prices is very much to be welcomed and clearly will help the competitiveness of Irish businesses. I am conscious that further improvement in Ireland's competitive position will foster economic growth. I am continuing to work with a number of Departments to ensure that the actions already taken are consolidated and further improvements are achieved during 2010 and beyond.