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Economic Competitiveness.

Dáil Éireann Debate, Thursday - 7 October 2004

Thursday, 7 October 2004

Questions (20, 21, 22)

Paul McGrath

Question:

19 Mr. P. McGrath asked the Minister for Enterprise, Trade and Employment his views on the latest report from the National Competitiveness Council (details supplied); the measures he intends to implement to combat this erosion in competitiveness; and if he will make a statement on the matter. [23628/04]

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Kathleen Lynch

Question:

48 Ms Lynch asked the Minister for Enterprise, Trade and Employment if his attention has been drawn to the recent report from the National Competitiveness Council which found that escalating business costs and consumer prices were putting Ireland’s economic success at risk; the action his Department intends to take arising from the report; if it is intended to act on the report’s recommendation that large increases in excise duties and VAT should be avoided in budget 2005; and if he will make a statement on the matter. [23669/04]

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Ciarán Cuffe

Question:

69 Mr. Cuffe asked the Minister for Enterprise, Trade and Employment his views on a study (details supplied) by the National Competitiveness Council which concluded that the Irish pay more for food and rent than consumers in any other euro zone country; the effect of this on wage demands and competitiveness; and if he will make a statement on the matter. [23596/04]

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Written answers

I propose to take Questions Nos. 19, 48 and 69 together.

The National Competitiveness Council, NCC, Statement on Prices and Costs 2004 highlights the key areas that contribute to Ireland's cost base and which affect our competitiveness. The NCC statement found that Ireland is an expensive location for many goods and services and is no longer a low cost economy. In addition to this statement, each year the NCC undertakes a comprehensive benchmarking exercise comparing Ireland's performance across a wide range of indicators against 15 other countries. This benchmarking exercise provides the statistical analysis for the NCC's Annual Competitiveness Report, which is published each year in conjunction with the council's report on the key competitiveness issues facing the Irish economy in the forthcoming year. This report is entitled the Competitiveness Challenge.

These reports will be published later this month and will contain detailed recommendations designed to address weaknesses in Ireland's competitiveness performance across a range of areas including cost. I look forward to receiving these reports and to addressing the issues to sustain Ireland's competitiveness. The recommendations will require attention across a range of Departments and will be considered by an interdepartmental group set up to take the issues forward.

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