Bernard Durkan (Kildare North, Fine Gael)
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Question 85: To ask the Minister for Enterprise, Trade and Innovation the action that he has taken or proposes to take to bring competitiveness in the manufacturing, commercial and service sectors into a more competitive position in respect of adjoining or EU jurisdictions; and if he will make a statement on the matter. [25988/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Ireland's competitiveness is benchmarked against a number of competitor countries, not just adjoining or EU jurisdictions, by the NCC on an annual basis. Since January 2008, Ireland has regained competitiveness as domestic inflation remains below that of our main trading partners and the euro weakened. We are seeing lower business costs, which is easing pressures on the business sector. Wage costs, asset prices and energy prices are all on a downward trend. Annual inflation fell by 2.5% in the twelve months to April, in contrast to the rest of the euro area where they rose by 1.5%. The Irish consumer price level relative to its trading partners is now back to levels last seen in 2000/2001.

The price of services to business fell by 5.7% in Q3 2009 compared to Q3 2008, with the largest price reductions in architecture, engineering & technical testing (-9.8%), and computer programming & consultancy (-8.5%). However, legal, accounting, public relations and business management consultancy fees dropped by just 1.5pc compared to 2008. The European Commission forecast that our Unit Labour Costs will fall by 9.4% over the 2009 to 2011 period, against a projected increase of 3.5% for the Eurozone. This equates to a positive swing of 13% in Ireland's favour over the three-year period to 2011. The Government introduced an extensive package of measures to contain energy costs last summer – and this is reflected in a much improved position relative to competitors. Data released in May shows that electricity and gas prices fell for all types of energy consumers in the second half of 2009, and have moved closer to the EU average for most business users.

We have also been actively progressing recommendations to increase competition and remove anti-competitive restrictions in the sheltered sectors of the economy. These include competition in transport, electricity, professional services, pharmacy services and the private rental sector. Upward-only rent reviews are now banned. In addition, we are working with relevant parties to see how we can deal further with other aspects of concern in existing leases and a report is expected at the end of June. Minister Kelleher is currently driving a series of workshops that aim to simplify life for Irish business, on Company Law, Employment Law and Health & Safety Law. The Minister is meeting with representatives from business, the professions and local enterprise boards to work out concrete plans to reduce red tape by simplifying some of the core administrative burdens currently placed on business. The ideas generated at these workshops are feeding in to the development of simplification plans in the three areas of regulation. It is intended that these will be presented to the High Level Group on Business Regulation, for their inputs and validation in the Autumn.

Competitiveness also includes boosting the total productive capacity of the economy. And we are doing this, for example, through 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. The entire Irish economy must be a smart economy, that is to say, a high-productivity economy if we are to compete with the rest of the world. The Taoiseach appointed me to Chair the group tasked with implementation of the recommendations of the Innovation task force and this met for the first time earlier this month.

Since my appointment as the Minister for Enterprise, Trade and Innovation, I have met with a range of stakeholder groups, including individual companies and business people both in Ireland and abroad. In my discussions, I have underlined that my priority is to ensure that the business environment is supportive of Irish enterprise, both manufacturing and services, to grow exports and to continue to encourage high value foreign investment.

Bernard Durkan (Kildare North, Fine Gael)
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Question 86: To ask the Minister for Enterprise, Trade and Innovation the extent to which he and or his Department has monitored the various costs affecting economic recovery; the degree to which he has identified the major contributory factors needed to be addressed in this context; and if he will make a statement on the matter. [25991/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Ireland's competitiveness, including cost competitiveness, is benchmarked against a number of competitor countries by the NCC on an annual basis. Since January 2008, Ireland has regained competitiveness as domestic inflation remains below that of our main trading partners and the euro weakened. We are seeing lower business costs, which is easing pressures on the business sector. Wage costs, asset prices and energy prices are all on a downward trend. Annual inflation fell by 2.5% in the twelve months to April, in contrast to the rest of the euro area where they rose by 1.5%. The Irish consumer price level relative to its trading partners is now back to levels last seen in 2000/2001.

The price of services to business fell by 5.7% in Q3 2009 compared to Q3 2008, with the largest price reductions in architecture, engineering & technical testing (-9.8%), and computer programming & consultancy (-8.5%). However, legal, accounting, public relations and business management consultancy fees dropped by just 1.5pc compared to 2008. The European Commission forecast that our Unit Labour Costs will fall by 9.4% over the 2009 to 2011 period, against a projected increase of 3.5% for the Eurozone. This equates to a positive swing of 13% in Ireland's favour over the three year period to 2011.

The Government introduced an extensive package of measures to contain energy costs last summer – and this is reflected in a much improved position relative to competitors. Data released in May shows that electricity and gas prices fell for all types of energy consumers in the second half of 2009, and have moved closer to the EU average for most business users. We have also been actively progressing recommendations to increase competition and remove anti-competitive restrictions in the sheltered sectors of the economy. These include competition in transport, electricity, professional services, pharmacy services and the private rental sector. Upward-only rent reviews are now banned. In addition, we are working with relevant parties to see how we can deal further with other aspects of concern in existing leases and a report is expected at the end of June.

Minister Kelleher is currently driving a series of workshops that aim to simplify life for Irish business, on Company Law, Employment Law and Health & Safety Law, which will also lead to reduced costs. The Minister is meeting with representatives from business, the professions and local enterprise boards to work out concrete plans to reduce red tape by simplifying some of the core administrative burdens currently placed on business. The ideas generated at these workshops are feeding in to the development of simplification plans in the three areas of regulation. It is intended that these will be presented to the High Level Group on Business Regulation, for their inputs and validation in the Autumn.

Competitiveness also includes boosting the total productive capacity of the economy. And we are doing this, for example, through 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. The entire Irish economy must be a smart economy, that is to say, a high-productivity economy if we are to compete with the rest of the world. The Taoiseach appointed me to Chair the group tasked with implementation of the recommendations of the Innovation task force and this met for the first time earlier this month.

We are focussed on opportunities for growth in a number of key sectors. For example, the Green Enterprise report estimated that 80,000 new jobs could be created in the coming years and there are other opportunities for growth in high-end manufacturing and services. Since my appointment as the Minister for Enterprise, Trade and Innovation, I have met with a range of stakeholder groups, including individual companies and business people both in Ireland and abroad. In my discussions, I have underlined that my priority is to ensure that the business environment is supportive of Irish enterprise, both manufacturing and services, to grow exports and to continue to encourage high value foreign investment.