Dáil Éireann Debate, Thursday - 16 December 2004
62 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the reason Ireland’s competitiveness has fallen behind almost all other EU partners; the way in which he sees this issue being addressed in the future; and if he will make a statement on the matter. [33774/04]
View answerIt is important to put into context Ireland's economic performance compared with the performances of our EU partners. Our projected economic growth of 5.1% of GDP in 2005 will be more than twice the EU average, while our unemployment rate at 4.4% is half the EU average. Ireland also has one of the lowest debt burdens in the EU and yet our rate of public investment at nearly 5% of GNP is almost twice the EU average. In a European context, Ireland's economic performance is exceptional and has demonstrated resilience. We realise, however, that our prosperity is not a stable asset and underpinning economic competitiveness remains critical to our future well-being.
To ensure our continued economic success the Government is committed to enhancing Ireland's competitiveness. The National Competitiveness Council, NCC, in its annual competitiveness report provides valuable analysis of Ireland's competitiveness status including identifying challenges to our economic performance. The NCC also recommends policy responses to meet these challenges. These recommendations are considered by Government and the relevant Departments each year. The most recent NCC annual reports were published on 14 October 2004. An interdepartmental group chaired by my Department, is considering the recommendations and will report to Government on progress early next year.
In the recent budget the Government has demonstrated its commitment to ensuring Ireland remains competitive. Examples of this commitment include the guarantee to maintain high levels of investment in infrastructure over the next five years. The Government also reiterated its commitment to an equitable tax system that rewards work and reduces the burden on the lower paid in our society. By not increasing the main VAT and excise rates in the budget, the Government has demonstrated its commitment to ensuring that the progress made on reducing consumer price inflation during 2004 continues into next year.
The research agenda is one of the most important elements in terms of our drive to increase both competitiveness and quality employment now and in the future. A group involving representatives from industry, venture capitalists, the universities and institutes of technology, Departments and agencies has developed Ireland's research and development action plan under the aegis of my Department. The plan was published in August 2004. It sets a target of spend on research and development of 2.5% of GNP by 2010 and makes a range of high level recommendations in pursuit of this. These recommendations are ambitious, but represent the kind of actions Ireland needs to take, if it is to continue to be competitive in a fast-changing globalised economy.
The enterprise strategy group's, ESG, report, Ahead of the Curve, is pivotal in road mapping the future direction of Ireland's enterprise policy and ensuring our competitiveness in the future. The purpose of the ESG is to ensure that Ireland's enterprise sector is able to build on its strengths and is able to exploit new opportunities that will arise in the future. The Government is committed to implementing the recommendations contained in this report. The implementation process is currently being finalised.
