Dara Calleary (Mayo, Fianna Fail)
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27. To ask the Minister for Jobs, Enterprise and Innovation the steps he will take following the latest National Competitiveness Council Costs of Doing Business in Ireland 2015 report outlining that Ireland was the third most expensive location in the euro area for consumer goods and services; and if he will make a statement on the matter. [28669/15]

Richard Bruton (Dublin North Central, Fine Gael)
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The National Competitiveness Council's Costs of Doing Business in Ireland 2015 report shows that Ireland's cost base has improved across a range of metrics over the last five years, and driven by reforms set out in the Action Plan for Jobs, Ireland's competitiveness position has improved in recent years.

As noted in the Government's Spring Economic Statement, this improvement in competitiveness has facilitated a reallocation of resources towards the tradeable sectors of the economy. Job creation has been the stand-out impact of this improvement. However, as the Council report makes clear, Ireland remains a high cost location for a range of key business inputs and there is a significant risk that recent competitiveness gains may be eroded.

I share the Council's view that structural reform, improving productivity and investing in productive infrastructure as well as maintaining a competitive cost base are critical to further improving Ireland's international competitiveness position and delivering our goal of sustainable full employment by 2018. Ireland's competitiveness position must remain a key economic priority for Government and as set out in the Action Plan for Jobs, a range of initiatives are in train across Government Departments to support competitiveness.

The National Competitiveness Council and my Department and its agencies are continually engaged with relevant stakeholders on the particular policy needs required to support cost competitiveness. The stakeholders include other Government Departments, regulatory bodies and public and private bodies. In this regard, there is a role for both the public and private sectors alike to proactively manage their cost base and drive efficiency, thus creating a virtuous circle between the costs of living, wage expectations and cost competitiveness. Measures that ensure open and competitive markets are also essential. In the longer term, productivity growth is the preferred mechanism to improve competitiveness as it can support cost competitiveness in tandem with increasing employment and living standards.

The policy implications of the Costs of Doing Business in Ireland 2015 report's analysis, and associated structural reforms required to address Ireland's cost base, will be included in the Council's annual Competitiveness Challenge report which will be published later this year.

The Council's report was considered by the Cabinet Committee on Economic Recovery and Jobs and by Government and Departments have been asked to consider potential actions to improve competitiveness that might be undertaken through the Cabinet Committee structures.