Dáil Éireann Debate, Tuesday - 23 April 2013
326. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which the issue of costs and competitiveness have been addressed in the context of job creation and attracting foreign direct investment; and if he will make a statement on the matter. [19006/13]
View answer330. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which he is satisfied of the ability of industry here to compete with the competition in domestic and export markets; and if he will make a statement on the matter. [19010/13]
View answerI propose to take Questions Nos. 326 and 330 together.
The recently published Forfás report “Costs of Doing Business in Ireland 2012” indicates that business costs have reduced significantly in recent years with overall price levels in the economy falling back to levels last experienced in 2002. Ireland is already rated highly internationally as one of the best countries in the world in which to do business, and we have built a strong competitive basis on which to go out and compete on global markets. For example, Ireland has moved up to 20th place in the IMD’s World Competitiveness Yearbook 2012 and is also ranked 15th in the World Bank’s Doing Business 2012 Report.
There are a number of key areas where Ireland tops global competitiveness rankings, including:
- business impact of rules on foreign direct investment;
- inflation;
- FDI and technology transfer;
- availability of skilled labour;
- flexibility and adaptability of the labour force; and
- investment incentives.
We are making progress on the jobs front through the Action Plan for Jobs process, which is systematically transforming the operating environment for business, improving our competitiveness and supporting companies increasing employment.
In 2012, Enterprise Ireland and IDA Ireland companies created almost 10,000 net new jobs between them, representing the strongest performance for the IDA in a decade and the best performance in over five years for Enterprise Ireland. There was a good regional spread in these new jobs, including new investments in Letterkenny, Sligo, Westport, Dundalk, Kilkenny, Limerick, Kildare and Wexford. The latest QNHS figures show that overall, employment in the economy increased by 1,200 people year-on-year to the end of 2012. This was the first increase in employment since the second quarter of 2008 and is in stark contrast to a situation where the economy was losing an average of almost 90,000 jobs per year in the period 2008 to 2011. Meanwhile, we are also showing that we can compete on international trade markets, as our total exports in 2012, at over €182 billion, were at their highest level ever.
However, while these improvements are very welcome and indicate that we are moving in the right direction, we must continue to focus on actions to promote further cost reductions across the economy. The Forfás report advises that over half of recent cost competitiveness gains are attributable to favourable exchange rate movements. The report also indicates that upward price pressure is beginning to emerge in some areas, while rigidities continue to persist within the economy.
The 2013 Action Plan for Jobs includes a range of concrete measures to address issues highlighted in the report in relation to labour costs, property costs, business services and broader consumer costs. The implementation of these actions, combined with the Government’s broader agenda to enhance productivity, will play a key role in improving our competitiveness and realising our ambition of making Ireland the best small country in the world to do business.
