Vol. 567 No. 6
73 Mr. Durkan asked the Minister for Finance if he is satisfied that the economy is adequately competitive when compared with other Eurozone countries; if economic indicators suggest changes; and if he will make a statement on the matter. [14679/03]
75 Ms Enright asked the Minister for Finance his views on the reported slide of Ireland in world competitiveness rankings. [14577/03]
I propose to take Questions Nos. 73 and 75 together.
I am aware that Ireland's ranking in the World Competitiveness Yearbook has fallen to 11th position this year from ninth in 2002. Securing the competitiveness which has been so instrumental to our economic development, and thereby safeguarding jobs, is a key priority for this Government. Bringing our inflation rate down to that prevailing in our major trading partners as soon as possible is essential in this regard. The recent strengthening of the euro and its negative impact on our competitiveness has increased the urgency of this.
That is why the Government made the commitment in Sustaining Progress to work together with the social partners to exert downward pressure on inflation. The anti-inflation initiative is part of this process and the Government agreed that proposals for action would be coordinated by a specially convened group.
I look forward to the anti-inflation initiative group's report which is due produced by the end of the summer. I am confident that, working together in partnership, we will address the issue of domestic price pressures in the Irish economy to bring inflation down.
In this context, the implementation of the moderate pay arrangements set out under Sustaining Progress is also vital.
I am also of the view that keeping public expenditure on target will be important if our inflation rate is to moderate and I have put in place management and control mechanisms to this end.
