While the recent trend in job losses is primarily the result of the continued low levels of growth in many of our export markets, the partnership programme, Sustaining Progress, recognises that renewing competitiveness, both within the domestic economy and on the international stage, is central to the overall macroeconomic policy of sustaining non-inflationary economic growth and high levels of employment.
The effective reduction of inflation requires actions by all social partners. Government has a major role but it requires the active support of the social partners. The Government is already taking measures to improve our competitiveness that will play a critical role in the fight against inflation. These include strengthening competition across the economy and implementing specific measures to tackle cost pressures in key areas such as insurance, increasing investment in research, technology and innovation which will provide the basis for future productivity growth and continuing to invest in key infrastructure such as broadband telecommunications.
Increasing competition and implementing necessary structural reforms is critical to controlling inflationary pressures in the domestic services sector which has been the source of much of our recent inflation. The powers and resources of the Competition Authority have been increased substantially to enable it to effectively tackle cartels and abuses of dominant position and to recommend regulatory reforms to improve competition in key markets. As part of this work, the Authority is carrying out a detailed study of eight professions and only last week published a consultancy study that will serve as the basis for a report and recommendations by the authority on each of the professions in turn.
I am also in the process of implementing a programme to fundamentally reform the insurance market to tackle the issue of high premiums which have had a detrimental effect both on consumers and on business competitiveness. This programme is already having an impact and it is heartening to note the recent reported comments from a number of major motor insurers here, that in one area they have already reduced premiums. I am committed to continuing with the reform programme and bringing about improvements in the functioning of the insurance market.
Additional informationIn addition to effective competition it is also important to ensure that shoppers have the necessary information so that they can make the best choice to suit their needs. Earlier this year I introduced new regulations, which oblige retailers to display both general price information and a unit price – that is, price per kilogramme or per litre – for all packaged products sold by quantity. This will enable consumers to make accurate and immediate comparisons as between competing products that are sold by quantity. This is part of an ongoing campaign to increase consumer information and awareness.