Dáil Éireann debate -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Economic Competitiveness.

Róisín Shortall

Question:

103 Ms Shortall asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the recent figures produced by the World Economic Forum which ranked Ireland in 30th place for competitiveness, down from fourth place in 2000; the steps she is taking to address the decline in the competitive position here in view of the implications for investment and job creation; and if she will make a statement on the matter. [29937/03]

Bernard J. Durkan

Question:

167 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures she has taken to improve the chances of further investment in jobs here; and if she will make a statement on the matter. [30137/03]

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

I propose to take Questions Nos. 103 and 167 together.

Ireland's ranking of 30th in the World Economic Forum's Global Competitiveness Report is clearly a disappointment. The National Competitiveness Council, NCC, published its annual report last week and highlighted the key areas to be addressed in meeting the challenges to Ireland's competitiveness. I am committed to improving Ireland's competitiveness and we are taking the necessary steps to follow up on the NCC recommendations both in the context of the budget and through the Government's commitment to consider and give effect to these recommendations.

The NCC reports state that Ireland's immediate priority must be to slow the growth of prices and costs. A business environment with a low inflation rate reduces firms costs, reduces the overall burden of costs on industry, and improves the competitiveness of the entire economy. The Government is committed to further reducing Ireland's inflation to bring it into line with our EU partners and other competitors.

In addition to taking action on prices and costs and to improving the country's competitiveness the Government is committed to a number of actions, which would Ireland more attractive in terms of investment and job creation. These include: increasing investment in research, technology and innovation, which will provide the basis for future productivity growth; strengthening competition across the economy and implementing specific measures to tackle cost pressures in key areas such as insurance; and continuing to invest in key infrastructure such as broadband telecommunications and the national road network.

Enterprise Ireland and IDA Ireland are also working to enhance Ireland's competitiveness and improve the chances of further investment in jobs. Enterprise Ireland, in addition to providing funding for innovation development and upskilling within client companies, also provides advice and referrals for clients to improve their competitive position. In May of this year, Enterprise Ireland launched a €10 million dedicated fund for building competitiveness in client companies. This fund complements the range of supports already in place and highlights the importance of action in this area. It is geared primarily to the more traditional industries where job shedding has continued to pose serious challenges.

IDA Ireland is actively seeking to facilitate a progression in the sophistication and breadth of its clients Irish operations. This means not only increasing value added in its manufacturing operations, but also adding corporate level innovation, such as research and development, and service, logistics and supply chain management functions alongside manufacturing. The objective is to create more rounded and strategically important operations within the overall corporation, which are better embedded and more suited to the competitive characteristics of the Irish economy in the medium to long-term.

In July of this year, I established the enterprise strategy group to produce a blueprint for an enterprise strategy for growth and employment in Ireland up to 2010. All the members of the group have displayed a keen knowledge and awareness of the needs of enterprises operating in Ireland over a considerable period. I look forward to the recommendations of the group and to their contribution to the future strategy designed to ensure that Ireland remains a dynamic and successful economy.