Dáil Éireann Debate, Thursday - 23 May 2024
55. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which his Department continues to ensure the competitiveness of this country’s trade and industry sectors in an increasingly competitive world market; and if he will make a statement on the matter. [23229/24]
View answerThis question is on the same theme of competitiveness, the health of the trade and industry sectors and the degree to which they can remain competitive in an increasingly competitive and challenging marketplace.
I thank Deputy Durkan for his very important question. Ireland is recognised as one of the most competitive economies in the world and performs well in international rankings of competitiveness. In June 2023, Ireland was ranked as the second most competitive country in the world in the IMD world competitiveness rankings. The 2024 iteration of these rankings is due to be published in the coming weeks.
The Government receives advice on issues relating to Ireland's international competitiveness from the National Competitiveness and Productivity Council. In May 2023, the NCPC published its triennial report, Ireland's Competitiveness Scorecard, which provides an analysis of Ireland's competitiveness performance based on internationally comparable data and the latest international rankings. The NCPC made a number of positive findings regarding Ireland's competitiveness performance. The essential conditions underpinning Ireland's competitiveness position are relatively robust. Ireland has a strong and stable fiscal position, with sound institutions, a supportive business environment and strong demographic endowments. Ireland is recognised as a highly open economy, with net trade contributing significantly towards annual growth. Ireland's international competitiveness is also reflected in the continued resilience of the economy at a challenging time for the global economy, and in the strong productivity growth in the highly globalised foreign-dominated sectors.
There are, however, a number of areas where Ireland could seek to improve its performance and competitiveness position. These are outlined in the NCPC's most recent annual report, Ireland's Competitiveness Challenge, published in September 2023. This report includes 19 recommendations for Government concerning the following: the cost of doing business; infrastructure delivery; energy generation and consumption; and research, development and innovation. These are all critical aspects of our current and future competitiveness. My Department has lead responsibility for four of the council's recommendations. The Government has issued a formal response to this report which sets out plans to address these recommendations.
My Department continues to pursue pro-enterprise and pro-competitive policies. Published in December 2022, the White Paper on Enterprise 2022-2030 sets out Ireland's industrial policy for the medium to long term, building on Ireland's strengths of an open economy with strong trade and foreign investment, a vibrant innovation hub and a resilient labour market.
I thank the Minister for his comprehensive reply. In passing, I congratulate him and his colleagues on their elevation or their retention of their very important positions.
The points the Minister has raised in regard to the contributory factors that might challenge the competitiveness of trade and industry are the issues I would like to concentrate on. All sectors of industry know the issues that impact on them most and that are not of benefit to them. The extent to which we can at this stage identify the cause or causes of challenges that may affect industry in retaining that competitive edge needs to be looked at, particularly at this moment. I ask that the issues the Minister has raised during previous questions be examined with greater intensity to ensure that all of those who might feel in any way threatened will have their case heard.
I concur with the Deputy that we can never take our eye off the ball when we have an open and strong economy like Ireland's. We have to continue to work. It is very important that we have a pipeline of €165 billion for the next decade for capital infrastructure because infrastructure improvements will attract new businesses and keep our economy competitive. We have seen in the national broadband plan how important it is to have high-speed, high-quality broadband in the most rural parts of the country so they can compete with the centre of Manhattan. With regard to improving housing, the figures we have seen in the first quarter are eye-watering, with a 60% increase in commencements. This record level shows how we can be competitive again by having high-quality housing for all of our people.
A further critical point is in regard to the reduction in emissions by 2% since 2021. This challenges our economists. It shows that we can grow our economy and reduce our carbon footprint in tandem. The emissions are going down while the economy is growing. This is important for us as a country. It leaves us as a strong competitor internationally and shows we are meeting our obligations, investing in the future, investing in infrastructure and keeping competitive.
With regard to the climate issues that the Minister raised, it is important that we retain our competitiveness in that area and do not become a world leader and, as a result, have to pay higher costs than many of our competitors. This is a very competitive market. We must try to maintain capacity. Any diminution at all will very quickly accelerate, with obvious consequences for employers and employees. I would like to know the extent to which the threats that are most obvious to competitiveness in the home market and the international market are being identified and challenged at this time.
They are valid points. The Deputy raised the issue of climate. It is critical that we remain competitive. When we see a company like Diageo, the home of the black stuff, spending €100 million to decarbonise its processes over the next five or six years, when we have world leaders like that based here in Ireland and leading by example, it shows the change that is under way. We have to work with the wider economy to ensure we are supporting them. We are the listening voice that articulates and works with businesses to ensure we are supporting them in every way possible. The key message is that we have €165 billion over the next ten years to transform our communities and continue to make our country a leader in competitiveness. It will be important to ensure that this money is spent and those projects are delivered so we are in a prime position to continue to attract investment from across the globe at the rate we currently do.
