Seán Crowe (Dublin South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

105. To ask the Minister for Jobs, Enterprise and Innovation the steps he has taken to address the many utility costs facing enterprises which undermine our competitiveness. [18624/13]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The recently published Forfás report “Costs of Doing Business in Ireland 2012” highlights a number of issues relating to utility costs in Ireland. Energy Costs remain relatively high in Ireland, particularly for SMEs. While Ireland is the sixth most expensive location from 15 countries benchmarked, the cost of water for industrial users remains relatively unchanged since 2007. Waste costs in Ireland remain relatively high, particularly for landfill, while Ireland is also relatively expensive for broadband, particularly when broadband quality is considered.

As part of the Action Plan for Jobs process, Forfás undertook a study to identify changes in the operation of sectoral regulators that would enhance cost competitiveness. The sectors examined in the report are energy, telecommunications, transport, waste and water. The report, which was published yesterday, also assesses Ireland’s cost performance in these sectors relative to our key competitor countries and the drivers of costs, in particular what drivers are within and outside our control in each of the sectors studied.

The study finds that in many cases policy actions have a more significant impact on cost competitiveness than regulatory changes. The report suggests that there are a number of areas where changes to the operation of sectoral regulators could have a real and positive impact on cost competitiveness. These changes relate to the focus of regulatory mandates, the level and adequacy of resources, enforcement powers and sanctions available to the regulators, and the efficiency of the appeal process. The recommendations set out in these two Forfás reports will require careful consideration by all of Government before appropriate policy responses can be developed. However the Government is already working on the development of a policy statement on Economic Regulation and has opened a public consultation process on the matter.