Bernard J. Durkan
Question:98 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she has taken to date to improve the competitiveness of the economy; and if she will make a statement on the matter. [18605/03]
Written Answers. - Competitiveness Issues.
The National Competitiveness Council reports to the Taoiseach and myself every year on key competitiveness issues for the Irish economy.
In its most recent Annual Competitiveness Report 2002, the council acknowledged that, over the past decade, the Irish economy has enjoyed significant advances allowing convergence across key areas with many of our competitors. A virtuous circle of low inflation, moderate wage increases, lower taxes and higher productivity was maintained and, as a result, the economy has been extremely competitive in recent years.
It is unquestionably the case, however, that circumstances have become much more difficult in recent times arising in substantial part from the global economic downturn but also from inflationary pressures which are seriously undermining our competitiveness. All economic stakeholders in civil society, including consumers, who must become more discriminating and vociferous, have responsibilities in tackling this threat. Government, too, must vigorously play its role, which it is, and it will be informed in its actions by advice from, for example, the National Competitiveness Council through its recent statement on inflation and through the anti-inflation initiative provided for under the Sustaining Progress national agreement.
The Government has already moved on this front. Its actions 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 telecommunication.
I should also add that on the specific issues of enterprise competitiveness, Enterprise Ireland has recently introduced a special competitiveness fund which is designed to help firms improve productivity and strengthen their overall competitiveness.