Dáil Éireann Debate, Thursday - 26 March 2015
11. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation in recognition of the improvement in Ireland's ranking in terms of international competitiveness, his plans to further improve our ranking in the year ahead. [12082/15]
View answerIn light of Ireland's improved international competitiveness rankings, what plans does the Minister have to continue that progression in the years ahead?
The Government has undertaken significant structural reforms to improve competitiveness. We have reformed wage setting mechanisms, improved access to finance for business and reduced the administrative burdens on business. Our cost base has improved making Irish firms more competitive internationally and Ireland a more attractive location for overseas firms. Improved competitiveness has facilitated indigenous startups and supported record levels of net job creation by Enterprise Ireland and IDA and jobs growth across the regions.
By making Ireland more competitive we have facilitated job creation, exports and enterprise. Since 2011, Ireland’s international competitiveness rankings have improved. We have moved from 24th to 15th in the International Institute for Management Development, IMD, world competitiveness yearbook and from 29th to 25th in the World Economic Forum global competitiveness report. In addition, we are 13th out of 189 in the World Bank’s report on doing business.
This improvement in international competitiveness has been hard won through structural reforms, pay restraint and productivity increases. We must however continue to do more to ensure our competitiveness gains are not eroded as the economy grows. Through the Action Plan for Jobs, the Government is maintaining its focus on measures aimed at improving our competitiveness position and creating a supportive environment for enterprise and sustainable full employment. The 2015 action plan places a particular focus on improving cost competitiveness, supporting competitive regions, aligning skills with enterprise needs and using research and innovation to secure future competitiveness.
The plan has set an ambitious strategic goal to further improve our international competitiveness ranking. Specific measures are being taken in the year ahead to reduce the administrative burden for over half a million business interactions by, for example, greater use of ICT, revoking outdated legislation, and greater awareness and promotion of health and safety best practice. Improvements to be delivered in 2015 include the roll-out of new company law which is reducing the administrative burden of company registration and filing systems, the new workplace commission, trusted partners for the issuing of work permits, and the integrated licensing applications service.
The National Competitiveness Council and the Cabinet Committee on Economic Recovery and Jobs will also continue to consider specific initiatives to improve our competitiveness. I am confident that the actions we are taking across the Government through the Action Plan for Jobs will support further improvements in our international competitiveness rankings.
I thank the Minister for his reply and acknowledge that he has a strong record both in opposition and as Minister in terms of highlighting the importance of competitiveness.
The National Competitiveness Council has highlighted a number of areas about which it has concerns, including property costs, quality broadband provision and energy costs. What concerns does the Minister have about the cost of property and the shortage of rental property evident in some markets? How important are energy market integration and the European Single Market in increasing energy cost competitiveness in Ireland vis-à-vis our competitors in the United States? Energy costs in Europe are much higher than in the United States.
Absolutely all of these factors are crucial. As the Deputy knows, the Government has a construction strategy to address the area of property. After the crash, there have been a number of difficulties in funding new developments. On broadband provision, a call will be issued later in the year to provide for the areas of the country that cannot be reached by commercial operators. The Minister for Communications, Energy and Natural Resources, Deputy Alex White, is working on that issue.
Energy poses particular problems. There is investment in strengthening the grid, but we have a fuel mix that creates competitiveness difficulties. Recently there have been improvements owing to the decline in oil prices. We have been showing improvements in our energy cost competitiveness in recent times. As the Deputy will see, the National Competitiveness Council has put on top of its list objectives such as enhancing the skills base, broadening the tax base, developing the enterprise base and improving access to finance. There is a range of areas in which we can hope to improve and on which we are working to make improvements.
I thank the Minister for the reply. IDA Ireland and Enterprise Ireland obviously have a strong record in job creation, not least in my constituency. The Minister was there on Monday in regard to IDT911. IDA Ireland and Enterprise Ireland will be reporting to the Minister on their meetings in the United States and other areas regarding concerns they and those jurisdictions have about competitiveness in Ireland. Will the Minister comment on this?
As the Deputy knows, IDA Ireland has just produced its strategy for the next five years. It is based on consultation in all of our markets. I participated in some of the meetings. The biggest issue is talent and it is in that respect that every country will stand or fall. There is a worldwide war for talent. Ireland is one of the top countries in terms of the availability of skills. That is a really important factor that keeps us right. We have to be very attentive to our capacity to respond to changing skill needs and building scientific capability and STEM subjects. Deputy Denis Naughten wrote an excellent report on these issues some years ago.
It was not listened to; that is the problem.
That is the biggest clarion call. As we develop the ETBs, the apprenticeship model and interaction between colleges and enterprise, these will be really important areas of work.
The Minister is not doing a bad job himself either
