John Bruton
Question:15 Mr. J. Bruton asked the Taoiseach if he will make a statement on the second annual report of the National Competitiveness Council. [12295/99]
Ceisteanna–Questions. - National Competitiveness Council.
The National Competitiveness Council published its second annual report on 5 May. The report assesses Ireland's competitive position based on measures of economic performance and through international benchmarking. The report confirms that Ireland continues to improve its competitive position, while it also identifies areas where further improvement is required.
The report highlights key messages for Ireland's future competitiveness and makes recommendations across a broad range of policy areas. The Government has asked the interdepartmental group on competitiveness, which was established by the Tánaiste last year, to consider the report and to prepare a response by the end of July.
Does the Taoiseach agree that the cost of housing, and its influence on potential pay claims, represents the biggest single threat to our competitive position in the medium term?
Property is a big issue in some parts of the country and that is why the Government has put so much effort into trying to move the issue forward, with the serviced lands initiative, the two Bacon reports and other initiatives. This report's conclusions signal many areas in the economy which must be advanced. It is important that the Government notes where the report assigns credit as well as areas where it signals there may be future difficulties. We must try to get proper policy resolutions for those areas.
Does the Taoiseach agree that the cost of housing is causing a particular difficulty for families, given the age group of those now trying to establish homes? Does he agree that this group also faces a particular problem with the cost of child care in addition to the cost of their mortgages? The combination of mortgage and child care costs is causing that group, which is essential to the workforce because their skills are so recent, to be extremely restive about their pay expectations. This will cause an increasing problem in the workplace and in industrial relations. The Government's efforts to increase the supply of housing are welcome but they are insufficient to deal with bringing house prices down. We must bring house prices down, not just stabilise them, if we are to avoid a potential pay explosion.
Affordability is based on availability. Every week, 1,000 houses are built in Ireland. This is an extraordinarily large number; fewer than half that number were being built a decade ago. All the Government's initiatives in this regard are necessary. These include measures to clear planning logjams, the allocation of resources to serviced land initiatives and the provision of infrastructural requirements such as water and sewerage schemes, drainage and roads. We also have 100 per cent mortgage tax relief and changes have been made in stamp duty regulations. Mortgage interest rates are low. All these measures are necessary but the most effective way to alleviate the housing difficulties is to increase the supply of houses. The Minister, Deputy Dempsey and the Minister of State, Deputy Molloy have repeatedly said this. Resources must be allocated to increasing the supply of houses and the Government is committed to doing that.