Dáil Éireann debate -
Thursday, 21 Mar 2002

Vol. 550 No. 5

Written Answers. - Price Inflation.

Bernard J. Durkan

Question:

75 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if specific price or cost increases which have taken place in the past 12 months are likely to impact specifically on competitiveness in industry and investment in job prospects; and if she will make a statement on the matter. [9663/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

The most recent assessment carried out by the European Commission, the European Competitiveness Report, 2001, ranks Ireland first in the Community in terms of real GDP growth, as well as under headings such as employment growth and labour productivity during the period 1995 to 2001. Overall, Ireland scored higher over a range of competitiveness indicators than most other member states.

The National Competitiveness Council has also ranked Ireland's competitiveness under a number of headings. The indicators under the heading, non-labour enterprise costs, in the annual competitiveness report, 2001, include telecommunications, energy and property costs and are identified by the council as areas where cost increases have been evident. In respect of telecommunications and energy costs the Government is committed to a policy of market liberalisation, competition and deregulation which will lead to lower costs for both industry and the consumer.

I am concerned at the contribution which these cost increases make to the overall competitiveness of the enterprise sector. However, the level of charges in these areas is now the responsibility of independent regulators, who operate under the aegis of my colleague, the Minister for Public Enterprise. I understand that, in arriving at their decisions, the regulators must take into account the likely effect of such costs on Irish business.

In so far as commercial and residential property costs are concerned, I understand the rate of increase in residential property prices has moderated recently, albeit from the extremely high rates recorded in 1998 and 1999. Our competitiveness determines our success in winning markets, investment and maintaining and improving living standards and overall prosperity. There are many factors that impact on our competitiveness. Maintaining and improving our competitiveness will continue to be a key priority of Government policy.

Question No. 76 answered with Question No. 69.