Micheál Martin (Cork South Central, Fianna Fail)
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186. To ask the Minister for Finance the policies he is implementing to ensure that the State remains competitive; the number of recommendations that are being implemented from the most recent national competitiveness council report; and if he will make a statement on the matter. [39746/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Addressing Ireland’s economic competitiveness is a key economic policy priority for Government, as outlined in the Summer Economic Statement published in July. The Action Plan for Jobs 2017 sets out a range of initiatives across Government Departments to support competitiveness. The National Competitiveness Council has reported regularly to the relevant Cabinet Committee where its recommendations are considered by the appropriate line Departments. This facilitates timely attention to areas of opportunity for improvement.

In its 2016 Competitiveness Challenge the Council acknowledged the improvement in Ireland’s public finances in recent years and recommended that Ireland continue to maintain a sound budgetary position. Pointing out that the Exchequer is still running a deficit, the Council highlighted the necessity of broadening the tax base in a manner that supports employment and enterprise. It also emphasised the need to ensure continued transparency and simplicity in relation to our tax structure. The Council also outlined recommendations that Ireland continue to develop a suite of tax offerings to ensure it is internationally competitive for enterprise and attuned to evolving sectors and activities particularly in the context of continued engagement with the OECD’s Base Erosion and Profit Shifting project. The Council recommended an appropriate balancing of the need to meet our obligations under the Stability and Growth Pact and the need to put in place a sustainable, counter-cyclical, medium-term fiscal planning process with the need to increase capital investment to enhance competitiveness and support enterprise.

The Council’s recommendations in relation to the importance of maintaining fiscal sustainability and ensuring that the tax system is internationally competitive and rewards work, investment and entrepreneurship are in accordance with Government fiscal policy as reflected in the fiscal stance in successive budgets and in this year's Summer Economic Statement. They inform my Department’s ongoing consideration of further measures to maintain economic competitiveness which will be set out in Budget 2018.