Written answers

Tuesday, 2 October 2012

Department of Jobs, Enterprise and Innovation

Economic Competitiveness

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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To ask the Minister for Jobs, Enterprise and Innovation if he has analysed the cost structure of Irish business and developed methods of reducing the cost base to allow businesses create jobs. [41593/12]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Jobs, Enterprise and Innovation the extent to which various costs continue to act as a disincentive to job expansion in existing enterprises in the manufacturing and services sectors; and if he will make a statement on the matter. [42064/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I propose to take Questions Nos. 76 and 255 together.

The National Competitiveness Council (NCC) periodically publishes a report on the “Costs of Doing Business in Ireland”. This report benchmarks business costs against a range of Ireland’s key competitor countries in a number of key areas, such as labour costs, property costs, utility costs and business and professional services. The report also provides an analysis of cost profiles of the manufacturing and services sectors.

In its most recent Cost of Doing Business report, published in 2011, the NCC identified improvements in Ireland’s competitiveness, particularly in relation to labour costs and property costs. However, the NCC also advised that further progress is required to ensure that Irish enterprises can compete internationally.

Some operating costs for business are largely outside the control of Government. For example, fuel and energy prices are primarily driven by external factors such as global fossil fuel prices. However, the Government’s approach has been to identify those areas of policy it can influence to bring about cost reductions or provide supports to business.

The Action Plan for Jobs 2012 includes an extensive range of measures across Government which will help to reduce costs and support job creation. These include:

- Reforming the statutory wage setting mechanisms;

- Reducing the administrative burden on business;

- Placing downward pressure on insurance costs through the enactment of the Legal Services Bill;

- Encouraging all professionals to supply quotes in advance to business customers; and

- Encouraging local authorities to exercise restraint in the setting of commercial rates.

The Government is making good progress on implementing the Action Plan for Jobs. All of the 160 measures for delivery in the first half of the year have been implemented.

The Government will continue to deliver on its commitments in the Action Plan for Jobs, to work towards the objective of supporting an extra 100,000 jobs in the economy by 2016 and making Ireland the best small country in which to do business.

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