Dáil Éireann debate -
Wednesday, 7 Jun 1995

Vol. 454 No. 1

Written Answers. - North-South Economic Competitiveness.

Rory O'Hanlon

Question:

154 Dr. O'Hanlon asked the Minister for Enterprise and Employment if his attention has been drawn to a statement (details supplied) that southern companies are considering moving to the North for cost and logistical reasons; if his attention has further been drawn to the weaknesses in the infrastructures in the Border areas; and the plans, if any, the Government has to bring costs into line with the six northern countries and to correct these weaknesses. [10215/95]

Minister for Enterprise and Employment (Mr. R. Bruton)

The Deputy's question refers to an interview given by me on the occasion of the White House Conference on Trade and Investment in Ireland which was held in Washington on 24-26 May.

One of the results of the peace process will be to enhance the economic competitiveness of Northern Ireland as a location for new business and I welcome this unreservedly. It may well be that some firms in the Republic will decide to locate facilities in the North. At the same time, in the new climate of economic co-operation, I can envisage Northern firms looking at the possibility of starting or developing businesses in the South. Furthermore, I believe that increased North/South economic co-operation and perhaps more importantly trade and investment will be to the mutual benefit of North and South.

In my interview, I was also drawing attention to the importance for us, in any event, to maintain and improve our competitivenessvis-á-vis the UK generally, particularly on aspects on which we are at some disadvantage at present, for example, labour costs. The Government, for its part, has taken action in this year's Budget to help labour intensive industries by reducing PRSI levels.

As regards infrastructure in our Border Counties, substantial public investment, aided by European Union Structural Funds, is planned for the period 1994-99. This will result in considerable improvement, particularly in relation to the road network, and will help to enhance economic development in those counties.