Bernard Durkan (Kildare North, Fine Gael)
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243. To ask the Minister for Finance the extent to which this economy remains competitive; and if he will make a statement on the matter. [41554/16]

Bernard Durkan (Kildare North, Fine Gael)
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348. To ask the Minister for Finance the extent to which he remains satisfied regarding the continued competitiveness of the economy; and if he will make a statement on the matter. [1970/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 243 and 348 together.

Significant progress has been made in recent years in improving Ireland's competitiveness.  The latest figures from the Central Bank of Ireland show that Ireland's real harmonised competitiveness indicator (a widely used measure of competitiveness in Europe) has improved by over 20 per cent between 2008 and November 2016.

The gains in Irish competitiveness achieved since 2008 have been hard-won through productivity improvements and wage and price moderation. It is important that this competitiveness is preserved and continues to support growth.  In this regard, we must be cognisant that favourable exchange rate movements can reverse, as can be seen for example in the strengthening of the euro against sterling last year.  Similarly, gains from the fall in oil prices may unwind in the future. Indeed, the drag on consumer prices from low oil prices is already beginning to ease. 

In addition, excessive rent and house price growth are also a potential threat to competitiveness. In this regard, the Government has implemented a number of initiatives aimed at tackling supply constraints which should ease price pressures.

Sustainable fiscal policies, to which the Government is committed, are also a key driver of competitiveness.

Finally, it is also important that, at firm level, pay moves in line with productivity developments.

In summary, I am highly conscious of the need to maintain competitiveness-oriented policies in order to help address emerging uncertainties.