Written answers

Thursday, 24 January 2013

Department of Jobs, Enterprise and Innovation

Economic Competitiveness

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 his Department has monitored the competitiveness of industry here; if economic competitiveness has fluctuated and if so to what extent in each of the past five years to date; and if he will make a statement on the matter. [3668/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The National Competitiveness Council (NCC) monitors Ireland’s competitiveness position on an on-going basis and reports to me on key competitiveness issues facing the Irish economy.

The most recent report published by the NCC, in July 2012 - “Ireland's Competitiveness Scorecard” - acknowledged that improvements have taken place in Ireland’s cost competitiveness since 2008, particularly in terms of labour costs and property costs.

This improvement in competitiveness is reflected in the fact that, in 2012, Ireland’s international competitiveness ranking improved four places from 24th in 2011, to 20th in the IMD World Competitiveness Yearbook for 2012. Ireland also improved its competitiveness ranking with the World Economic Forum, which reported last year that Ireland had improved its competitiveness ranking, from 29th to 27th place, in that organisation’s Global Competitiveness Index.

Notwithstanding these improvements, the NCC has identified a number of issues which need to be addressed in order to achieve sustainable, long-lasting competitiveness gains. The Council advises that the Government must maintain a focus on implementing a range of structural reforms across all sectors of the economy, including in relation to the labour market, competition policy, taxation, education and skills. The NCC also highlights the importance of ensuring that our banking system is appropriately structured to provide an adequate supply of credit for enterprise.

The Government has been systematically identifying those areas of policy it can influence to bring about cost reductions or provide supports to business. The Action Plan for Jobs 2012 included an extensive range of measures across Government which will help to improve competitiveness and support job creation across all sectors of the economy.

Updates on all commitments under the Action Plan for Jobs are outlined in the Quarterly Progress Reports on the Plan which are available on my Department’s website, www.enterprise.gov.ie.

Further measures to improve our competitiveness will be contained in the 2013 Action Plan for Jobs which I am currently finalising on behalf of the Government. The 2013 Action Plan will be published in the coming weeks.

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