Bernard Durkan (Kildare North, Fine Gael)
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Question 111: To ask the Minister for Enterprise, Trade and Innovation his innovation proposals for job creation throughout the country with particular reference to competitiveness; and if he will make a statement on the matter. [19677/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The core policies and measures which underpin the Government's drive to grow exports and create sustainable jobs are outlined in the Government's "Jobs and Growth 2010" Statement, which was published in March. It is clear from this Policy Statement that the delivery of jobs and economic growth requires both direct and indirect measures. We have made sure, first of all, that the business and employment environment is favourable and is conducive to growth. Secondly, we have taken steps in the last 12-18 months to safeguard business and jobs through the difficult period of adjustment.

The Government has implemented a comprehensive economic strategy that includes prudent and controlled levels of taxation, spending and borrowing. It also has at its heart policies targeted at new, sustained growth in business, exports and jobs, based on increasing levels of productivity, competitiveness and innovation. These are the policies that are firmly at the top of my agenda as the new Minister for Enterprise, Trade & Innovation, and I believe that these policies will continue to show results.

Competitiveness is complex and involves many factors. As well as consumer prices, labour and other business costs, productivity-enhancing investment in key areas such as infrastructure is vital. In Government, we are conscious that further improvement in Ireland's competitive position will support business and foster economic growth. By maximising our resources, our job is to provide a suitable framework that will encourage enterprise development and opportunities, including job creation throughout the country.

Since January 2008, Ireland has regained competitiveness as domestic inflation remains below that of our main trading partners and the euro weakened – in February 2010, Ireland's real harmonised competitiveness indicator (HCI) was back to its January 2005 position.

Improving our relative cost competitiveness requires the cost of doing business in Ireland to fall relative to that of our trading partners. Data which will be published shortly by the NCC will show that prices in Ireland have moderated in the past year, particularly property and energy prices. In addition, at an economy wide level, Irish labour wage rates – when adjusted for productivity – are becoming more cost competitive.

In parallel to the fundamental steps taken over the past 18 months to stabilise the public finances and restore the banking system, the necessary price adjustment to restore competitiveness is underway. Business costs have fallen: wage bills, asset prices, energy and prices in general have responded to the effects of recession and corrective government action. We are targeting R&D and Innovation to drive productivity and ensure that we have the skills and technologies available in Ireland that will give us a competitive advantage.

Recent changes in Departmental structures have brought innovation to the fore in my new Department. I am pleased to advise the House that the Government has agreed that I personally chair a High Level Implementation Committee to oversee implementation of the Report of the Innovation Taskforce, which was also published in March. This reflects the highest political priority that is being afforded to the implementation of this report.

Further strengthening Ireland's competitive position will foster economic growth and bring an increase in job creation throughout the country. I am working with my colleagues in Government to further embed the improvements already achieved and to strengthen Ireland's relative international competitiveness position.