Dáil Éireann Debate, Tuesday - 15 December 2009
89 Deputy Denis Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she is taking to address the competitiveness challenge facing the manufacturing and service sector; the further steps she is taking to address this issue in the short and medium term; and if she will make a statement on the matter. [46791/09]
View answerRestoring cost competitiveness has been a major priority to address the competitiveness challenges facing all industry sectors in the economy. Action has been taken on a number of fronts to reduce the cost of doing business in Ireland. We are progressing recommendations aimed at increasing the level of competition and removing anti-competitive restrictions in sheltered sectors of our economy, which will also drive down costs. The High Level Group on Business Regulation 2009-10 work programme initially contained more than fifty recommendations from business, and some twenty-five of these recommendations have already been processed by the Group which will result in administrative cost savings for business. Furthermore, prices are coming down sharply and we have also seen a decline in unit labour costs, which has a direct effect on competitiveness.
Overall, all categories of businesses, have benefited from significant energy price decreases in 2009. The Commission for Energy Regulation (CER) has recently announced that the PSO levy will be zero for 2009/2010. The level of capacity payments, that compensate electricity generators for their long run costs, will also be 15% lower in 2010 compared with 2009. Just last week, Bord Gáis Energy announced a further cut in the unit price of gas by an average of 8pc for residential and SME customers. The cut will be applied from 1 February 2010 and will be the third gas price reduction in less than a year, adding up to a total price decrease of 25pc since May 2009.
A myriad of supports are available to companies to address their competitiveness concerns in both the short and medium term. Funding supports, advice on general cost cutting and energy reduction, productivity improvements, marketing strategies along with help to identify new sales opportunities are just some examples of the ways that assistance is provided. Enterprise Ireland are working with companies in both manufacturing and services sectors on a daily basis to help them enhance their competitive strengths and improve their export potential. Assistance is also being provided to help companies generate new sales by competing for public sector contracts, both domestically and internationally. The enterprise stabilisation fund, launched earlier this year, provides direct financial support to internationally trading enterprises that are investing in cost reduction or other measures to gain sales in overseas markets. Client companies of Enterprise Ireland, IDA Ireland, Údarás na Gaeltachta and Shannon Development across all sectors in manufacturing and internationally traded services are eligible to apply.
€114.5 million is being made available in 2010 for the Employment Subsidy Scheme, representing an increase of €94 million on the 2009 provision. This scheme was introduced to support the maintenance of vulnerable jobs and prevent people from being made redundant. The first call of the scheme will provide subsidies directly for 7,773 jobs. In addition, firms have committed to retain a further 36,260 jobs. This means a total of just over 44,000 jobs will be retained as a result of the first call of the scheme. I have decided to have a second broader call for applications with extended eligibility criteria open to both exporting and non-exporting firms.
