Dáil Éireann Debate, Wednesday - 15 June 2016
216. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if she monitors the industrial cost base relative to other European Union and non-European Union states to ensure competitiveness in the manufacturing and services sectors; if she has identified issues requiring attention; and if she will make a statement on the matter. [16307/16]
View answerCost competitiveness is an important aspect of Ireland's overall competitiveness and we continue to monitor Ireland's cost competitiveness on a regular basis. The National Competitiveness Council’s Costs of Doing Business in Ireland report published in April 2016 benchmarks key business costs across over 50 indicators and focuses on areas where Irish enterprise costs are out of line with key competitors, and on costs that are largely domestically determined.
Ireland’s improving competitiveness performance has been central to securing the recovery in economic growth and employment. Improved competitiveness has made Irish firms more cost competitive internationally and made Ireland a more attractive location in which firms can locate and expand their operations.
As a result of our concerted efforts to improve competitiveness, Ireland’s relative international competitiveness as measured by a range of international indices has improved since 2012.
In June this year we saw a significant improvement in Ireland's global IMD ranking, with Ireland now ranked the 7th most competitive economy in the world.
The NCC report concludes that Ireland’s industrial cost base has improved but pressure points have emerged in labour, property and business service costs. The report makes clear, despite good progress in recent years Ireland remains a relatively expensive location in which to do business. Improving cost competitiveness continues to be a significant challenge. We must therefore focus intensely on reducing costs that are out of line with those in competitor countries.
Addressing Ireland’s international cost competitiveness is a key economic policy priority for Government and as set out in the Action Plan for Jobs, a range of initiatives are in train across Government Departments to support cost competitiveness. The policy implications of the Costs of Doing Business in Ireland 2016 report’s analysis, and associated structural reforms required to address Ireland’s cost base, will be included in the Council’s annual Competitiveness Challenge report which will be brought to Government published later this year.
