Bernard Durkan (Kildare North, Fine Gael)
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173. To ask the Minister for Enterprise, Trade and Employment the extent to which he expects the economy to remain competitive notwithstanding the impact of Covid-19, Brexit and inflation; and if he will make a statement on the matter. [61062/21]

Leo Varadkar (Dublin West, Fine Gael)
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The maintenance and improvement of Ireland’s competitiveness position is a key economic priority for Government especially in the uncertain environment of Covid-19, Brexit and rising prices.

The fact Ireland is such an open economy means it is important that we remain competitive when compared to peers as this will help ensure continued and sustainable economic growth over the coming years

At the heart of Ireland’s national competitiveness is creating an environment in which Irish businesses are able to compete successfully in international markets.

The National Competitiveness and Productivity Council (NCPC) published Ireland’s Competitiveness Challenge 2021, which has identified four broad medium- and long-term strategic challenges aimed at enhancing Ireland’s competitiveness and productivity performance.

The Government has officially responded to all 20 of the recommendations that were set out by the NCPC in its report, indicating the range of actions and reforms currently or soon to be in train in response to the recommendations. These actions will support Ireland’s competitive position compared to its peers in coming years.

In addition, there is a need to capitalise on the opportunities Covid-19 has created which have the potential to enhance Ireland’s competitiveness in the long term, such as the acceleration of digital adoption and the possibility for more flexible working.

To take advantage of such opportunities the Government has committed to addressing the digital divide and enhance digital skills as part of the Economic Recovery Plan along with the publication of the National Remote Work Strategy earlier this year.

Brexit has also brought into sharp focus the need for Irish based enterprise to step-up their productivity and innovation performance and for Ireland's policy system to be agile in responding to the competitiveness challenges.

For example, in my own Department the Regional Enterprise Transition Scheme Feasibility Funding supports detailed evaluation of early-stage opportunities for new impactful regional enterprise development projects along with grants.

This scheme along with others, such as the SBCI Brexit Impact Loan Scheme and the Microfinance Ireland Brexit Business Loan, will improve the capability and competitiveness of regional enterprises and encourage entrepreneurial activity among our SME community, ultimately reinforcing the competitiveness of the Irish economy.

The measures outlined above taken by the Government mean we can be confident the Irish economy will maintain and improve its competitiveness position compared to its peers in the coming years, despite the challenges we and other economies are facing.

Bernard Durkan (Kildare North, Fine Gael)
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174. To ask the Minister for Enterprise, Trade and Employment his vision for the recovery for the economy notwithstanding national or international factors; and if he will make a statement on the matter. [61063/21]

Leo Varadkar (Dublin West, Fine Gael)
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The COVID-19 pandemic has caused unprecedented disruption across all sectors of the economy and all regions of the country. However, despite this disruption, the Irish economy has shown remarkable resilience. Using the latest quarterly national accounts data from the CSO, the economy grew by approximately 14.5% in GDP terms in the first nine months of 2021 compared with the equivalent nine months of 2020. While growth in 2020 was predominantly driven by activities in the multinational sector, growth in 2021 was much more broad-based, with domestic activity rebounding swiftly this year as the economy opened up. Robust growth in the domestic and multinational sectors is expected to continue in 2022, with the Department of Finance forecasting grow of 5.0% in GDP terms, while Modified Domestic Demand is estimated to grow by 6.5% next year.

The Economic Recovery Plan (ERP) published in June 2021, sets out the Government’s medium-term economic plan to rebuild Ireland’s economy. As well as committing to a package of supports and investments to assist enterprise recovery, the Plan outlines a medium-term policy framework to rebuild sustainable enterprises, encourage job creation and sustainable and balanced post pandemic growth.

The past 18 months have been difficult for most businesses, and some sectors continue to be impacted by public health restrictions. Last Friday's announcement regarding restrictions was a bitter blow for many businesses. Throughout the pandemic my Department and its enterprise agencies have engaged with and supported businesses within their remit and are continuing to do so as we face the current challenge of significant case numbers across the country.

The ERP set a target to exceed pre-crisis employment levels by having 2.5 million people in work by 2024 and in more productive and resilient jobs. There has been considerable recovery in employment across the economy in recent months with employment standing at 2.35 million (seasonally adjusted) although this is likely to be impacted by the latest restrictions required to protect public health.

The Plan adopts a two-pronged recovery approach to rebuilding sustainable enterprises; supporting the domestic SME sector, which is critical to broad-based jobs-led economic growth, whilst leveraging the enormous strength of the Foreign Direct Investment (FDI) sector. It aims to create an environment for a jobs-led recovery through a focus on expanding sectors and by helping business become more resilient and agile.

The pandemic has accelerated digital transformation and catalysed new drivers of growth. Growing pressures and the increasingly obvious physical realities of climate change are requiring more ambitious commitments to climate action. Reflecting the importance of the green and digital transition, the ERP and related strategies commit to driving a step change in the adoption of digital, AI and other new technologies by Irish businesses, as a critical driver of enterprise productivity and competitive advantage and to supporting enterprise on its decarbonisation pathway. The ERP also includes a commitment to develop a National Clustering Policy and Framework to fully realise the economic potential from clustering. Clusters are now a major part of the industrial landscape internationally and an important policy instrument in driving the green and digital transitions and economic growth. Clustering is also a focus for both IDA Ireland and Enterprise Ireland to support their client companies and leverage synergies and spillovers.

Innovation, collaboration, and knowledge are the cornerstone of a sustainable growth model to ensure the country is equipped to embrace new and emerging opportunities. The education, training and research sectors will be supported to shift up a gear to rise to the challenge and our skills framework and architecture will be further strengthened to ensure people are supported to secure and remain in sustainable and quality employment through opportunities to reskill and upskill.

Bernard Durkan (Kildare North, Fine Gael)
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175. To ask the Minister for Enterprise, Trade and Employment the extent to which he expects the economy to recover and grow over the next five years; and if he will make a statement on the matter. [61064/21]

Leo Varadkar (Dublin West, Fine Gael)
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The Irish economy has shown remarkable resilience since the onset of the COVID-19 pandemic which has caused unprecedented disruption across all sectors of the economy and all regions of the country. Many businesses are still hurting, and will be impacted by the most recent restrictions, but many businesses are also performing very well.

Economic growth in 2020 was predominantly driven by activities in the multinational sector, but growth in 2021 has been more broad-based, with domestic activity rebounding swiftly this year as the economy opened up. The Department of Finance is forecasting that GDP growth for this year will be 15.6% and the domestic part of the economy, as measured by Modified Domestic Demand, will grow by 5.2%.

This robust growth in the domestic and multinational sectors is expected to continue over the coming years with the Department of Finance forecasting growth of 5.0% in GDP for 2022 and 4.1% in 2023. This growth will also be reflected in the domestic economy with Modified Domestic Demand estimated to grow by 6.5% next year and 4.2% in 2023.

The Economic Recovery Plan (ERP) published in June 2021, sets out the Government’s medium-term economic plan to rebuild Ireland’s economy. As well as committing to a package of supports and investments to assist enterprise recovery, the Plan outlines a medium-term policy framework to rebuild sustainable enterprises, encourage job creation and sustainable and balanced post pandemic growth.

These measures will help to sustain the positive growth the economy has experienced over the last year and ensure it is sustainable over the coming five years.