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Economic Competitiveness

Dáil Éireann Debate, Thursday - 24 January 2013

Thursday, 24 January 2013

Questions (50)

Caoimhghín Ó Caoláin

Question:

50. Deputy Caoimhghín Ó Caoláin asked the Minister for Jobs, Enterprise and Innovation his actions to date to deal with the added costs associated with businesses operating along the border. [3233/13]

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Written answers

Certain operating costs for business are largely outside the control of Government. For example, fuel and energy prices are primarily driven by external factors such as global fossil fuel prices. In addition, currency exchange rates are important in creating relative price differences that can lead to higher costs for businesses in one jurisdiction compared to the other and this can have a particular impact in border areas.

The Government’s approach has been to identify those areas of policy it can influence to bring about cost reductions or provide supports to business. The Action Plan for Jobs 2012 includes an extensive range of measures across Government which will help to reduce costs and support job creation. These include:

- reforming the statutory wage setting mechanisms;

- reducing the administrative burden on business;

- placing downward pressure on insurance costs through the Legal Services Bill;

- encouraging all professionals to supply quotes in advance to business customers;

- providing supports to businesses to improve their energy and resource efficiency;

- introducing a mechanism to allow small companies to apply to the Circuit Court, rather that the High Court, to have an Examiner appointed;

- encouraging local authorities to exercise restraint in the setting of commercial rates.

Updates on these, and all other commitments in the Action Plan for Jobs, are detailed in the Quarterly Progress Reports on the Plan which are available on my Department’s website, www.enterprise.gov.ie .

The most recent report published by the National Competitiveness Council (NCC), in July of this year - “Ireland's Competitiveness Scorecard” - acknowledged that improvements have taken place in Ireland’s cost competitiveness, particularly in relation to labour costs and property costs. However, the NCC also advised that Ireland must maintain focus and continue to reduce costs to business. I would point out to the Deputy that the Programme for Government includes a commitment to work for greater economic co-operation with Northern Ireland to accelerate the process of recovery and the creation of jobs on the island. In that context, my Department and its agencies are working with their Northern Ireland counterparts on a range of issues as set out in PQ 3234/13.

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