Barry Ward (Dún Laoghaire, Fine Gael)
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53. To ask the Minister for Enterprise, Trade and Employment the position regarding Ireland’s competitiveness relative to other EU countries; his views on whether our competitiveness is sufficient in that context; and if he will make a statement on the matter. [62020/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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Ireland currently holds a strong competitive position globally. This is reflected in our current position as the 7th most competitive country in the latest IMD World Competitiveness Rankings. Among EU member states specifically, Ireland ranks 2nd.

Our strong performance is underpinned by several key factors, including a highly skilled workforce, strong economic growth, and success in attracting foreign direct investment in high-value sectors. Nonetheless, we cannot be complacent, as our overall ranking has fallen by five places over the past two years. There are significant challenges to our international competitiveness performance, and it is important that we do not take our strengths for granted.

In a rapidly changing and uncertain international environment, it is fundamental that we take action to address long-standing legacy issues as well as emerging threats to our competitiveness performance. In other words, we must focus on “controlling the controllables”. Persistent high costs related to energy, labour, and regulatory compliance continue to challenge the competitiveness of businesses. Ireland’s rapid expansion has also exposed constraints in the country’s physical infrastructure capacity, and structural barriers to continued rapid economic development.

In response to international economic developments, and in line with a commitment in the Programme for Government, this Government expedited the preparation of an Action Plan on Competitiveness and Productivity. The Action Plan was published on the 10th of September.

The Plan reflects a whole-of-government approach to the domestic drivers of competitiveness, focusing on areas firmly within our national control. Its development has been informed by extensive consultation across Government Departments, and with external stakeholders, including a series of bilateral engagements with key Government partners, including in the areas of infrastructure, housing, research, and innovation.

Crucially, the Action Plan is guided by the analysis of the National Competitiveness and Productivity Council, included in the Council’s annual Ireland’s Competitiveness Challenge report. This evidenced-based input was vital to ensuring that actions are targeted, proportionate and future-facing.

Overall, the Action Plan contains 85 actions for enhancing Ireland’s competitiveness and productivity performance, with 26 of these identified as priority actions, and covers industrial policy, reducing the cost and regulatory burden on business, investing in infrastructure, digital regulation and reform, energy reform, international trade and research and development, and innovation. To ensure accountability, each action has been assigned to a government department or agency, which will have responsibility for its delivery within a specified time-period.

While Ireland remains highly competitive by international standards, the overarching objective of the Action Plan is to safeguard and strengthen this position by enhancing productivity, deepening the resilience of the economy, building on existing strengths, supporting the growth of indigenous enterprise, and continuing to attract investment and talent from abroad.