Dáil Éireann Debate, Thursday - 16 December 2004
127 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the action he has taken to address the issue of price hikes leading to uncompetitiveness in the economy; and if he will make a statement on the matter. [33990/04]
View answer128 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he has examined the implications of price increases as a contributory factor in the issue of job relocation; and if he will make a statement on the matter. [33991/04]
View answer130 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which insurance costs including motorist and public liability cover in this country compares with other European and non-European countries; and if he will make a statement on the matter. [33995/04]
View answerI propose to take Questions Nos. 127, 128 and 130 together.
Ireland's economy is undergoing fundamental change, which is affecting all sectors of our economy. Ireland can no longer be regarded as a low cost location for investment as our strengths and competitive advantages have inexorably changed. High output and productivity together with high returns to labour in the form of wages, salaries and better living standards now typify the economy. As a result, Ireland is no longer regarded as a location for what could be called basic low-tech production and is being overtaken by low wage economies in terms of cost competitiveness. However, no measure is available to quantify jobs that may have relocated to other countries.
The National Competitiveness Council, NCC, in its most recent annual competitiveness reports has identified as a high priority the need to recover Ireland's cost competitiveness to ensure sustained economic success in the future.
With regard to insurance costs, comparison of insurance figures in European countries is available in the European Insurance in Figures, June 2004 report published by the Comité Européen Des Assurances, CEA, which shows details of average non-life premiums per inhabitant. These figures include motor and public liability insurance. The figures for 2002, which are the latest given, show that of 31 European countries listed, Ireland ranked fifth highest with a value of €1,006, Luxembourg was highest with a value of €2,143, Switzerland was second highest with a value of €1,730, while the Netherlands was third highest with a value of €1,240. The United Kingdom, with a value of €1,183, was fourth highest. Lithuania was second lowest with a value of €53 and Turkey was lowest with a value of €25. The average premium in Europe in 2001 was €619.
The ratios need to be analysed carefully. The figures comparing premium amounts to the number of inhabitants do not correspond to sums actually paid by those insured. In addition, these figures do not always include only or all premia paid by the inhabitants of the country concerned. These 2002 comparisons do not reflect recent experience in Ireland, as a result of the Government's insurance reform programme. Indications to date are that the cost of insurance in Ireland is falling. The CSO publishes monthly indices of costs for a number of classes of insurance. These statistics show that there was a reduction of 20% in motor car insurance between the months of April 2002, when the first Motor Insurance Advisory Board report was published, and October 2004 which is the latest figure available. There are also reported reductions in the cost of premia for public and employer liability insurance.
The Government is committed to pursuing actions to address cost issues in other areas and has already taken several measures in this regard. In the area of competition, the Government has strengthened the powers and the resources of the Competition Authority to enable it to continue in its role to tackle anti-competitive behaviour in sectors of the economy. Competition is working well in many sectors of the economy but Ireland cannot afford to have sectors of the economy sheltered from competition.
Furthermore the Competition Authority is undertaking reviews of certain building, legal, medical and construction professions, which will address competition issues in the sheltered sectors of the economy. It must be remembered that competition is the most efficient method of ensuring prices are kept low and at optimal levels for consumers and businesses alike.
The Government earlier this year established the consumer strategy group to advise and make recommendations for the development of a national consumer policy. In the performance of this role the consumer strategy group has carried out a range of activities, including studies that investigate issues of special concern. Price trends with other parts of Europe have been examined and some prices have been the subject of additional investigation, including those of fruit and vegetables, alcoholic beverages and pharmaceuticals. The group will report to me early in the new year and I plan to give the report prompt attention and consideration as soon as I receive it.
129 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the country or countries with which Ireland has achieved new import and-or export business; and if he will make a statement on the matter. [33992/04]
View answerIreland exports around the globe. The Government's strategy is to create further market opportunities by assisting companies to deepen market penetration where they are established and to establish in new markets where export opportunities exist. Through Enterprise Ireland, the Government supports the growth of exports by working with individual companies in identifying new product and market opportunities and devising and implementing appropriate strategies to capitalise on them.
New market opportunities are explored by the Enterprise Ireland overseas office network. It provides market intelligence for potential buyers and for the different economic sectors. That information is made available to Enterprise Ireland clients and incorporated, as appropriate, in their company development plans. In addition, the Enterprise Ireland annual business review comprehensively addresses the sales and export markets of clients, and specifically focuses on designated priority markets in the period under review.
Enterprise Ireland develops new market opportunities for clients by arranging meetings with significant international buyers, either through inward buyer missions or outward trade missions. To date this year, 15 overseas trade missions to countries in Europe, North and South America, the Middle East and Asia have been lead respectively by the Taoiseach, Ministers and Ministers of State. European and North American markets continue to dominate our export and import trade. The United States is now our largest export market, accounting for approximately 20% of total exports. The UK now accounts for approximately 17% of exports. However, when taken together, the member countries of the European Union are of primary importance to our exporters. They account for approximately 62% of exports to date this year.
The UK continues to be our largest source of imports, accounting for 30% of the total, while the EU as a whole accounts for 57%. In recent years, China has become a much more important source of imports than heretofore, and so far this year accounted for approximately 5.5% of imports. The USA accounts for approximately 14.6% of the total.
