Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

124. To ask the Minister for Jobs, Enterprise and Innovation the extent to which the costs affecting business here continue to threaten any aspect of economic recovery; and if he will make a statement on the matter. [41773/13]

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

Minimising business costs, improving competitiveness and increasing productivity are all key ingredients which will support economic recovery. The Forfas report “Costs of Doing Business in Ireland 2012” published earlier this year, examined costs of doing business here and identified the relative importance of different areas of cost for different business sectors. The report indicates that business costs in Ireland have reduced significantly in recent years, with overall price levels in the economy falling back to levels last experienced in 2002. The improvement in business cost competitiveness has been driven by significant reductions in property related costs (in terms of purchase and rent levels) and falling prices across a range of professional and business services. There have also been relative improvements in labour costs in Ireland which fell on average by 0.9% per annum in the period 2008-2011, while labour costs increased in the euro area by 4.6% per annum on average in the same period. However, while these improvements are very welcome and indicate that the economy is moving in the right direction, we must continue to focus on actions to promote further cost reductions across the economy. The Forfas report makes a number of recommendations aimed at further improving our cost competitiveness position in relation to labour, property, transport, utility and professional services costs.

Part of the objective of the Action Plan for Jobs has been the development of proposals each year that can improve our competitiveness. The 2013 Action Plan includes a number of specific actions in this regard which address some of the areas highlighted in the Forfas report. The implementation of these Action Plan measures, combined with the Government’s broader agenda to enhance productivity, will play a key role in improving our competitiveness and realising our ambition of making Ireland the best small country in which to do business.