Dáil Éireann díospóireacht -
Tuesday, 22 Oct 1996

Vol. 470 No. 4

Written Answers. - Competitiveness Rating.

Desmond J. O'Malley

Ceist:

35 Mr. O'Malley asked the Minister for Enterprise and Employment the reason Ireland has slipped 13 places, from ninth to twenty-second, in the World Economic Forum's competitiveness report, in view of the apparent strength of the Irish economy over recent years; and if he will make a statement on the matter. [19215/96]

Minister for Enterprise and Employment (Mr. R. Bruton)

I assume the Deputy is referring to the recent report of the Institute for International Management Development (IMD) titled The World Competitiveness Yearbook 1996, where Ireland is placed 22nd. Furthermore, I take it the Deputy is comparing this with our 9th place in an earlier 1992 report. I should mention at this stage that the World Economic Forum is no longer associated with this report.

It would be misleading to attempt a direct comparison between the 1992 and 1996 placings as there have been changes in both methodology and in the countries being compared.

The IMD has given the 1992 placings in the 1996 report, recalculated according to the 1996 methodology and this is the appropriate basis for comparison. Analysis on this basis suggests that, since 1992, Ireland has not been passed out by any country and that we have passed out one other country — Malaysia.

The Deputy should also note the two countries not previously covered are now ranked above us — Chile and Luxembourg. Ireland's relative ranking has actually moved from 24th place to 22nd.

Regardless of the problems of measuring relative competitiveness, I would, of course, share the Deputy's concern that we might be perceived to be losing ground, especially at a time when the economy is generally acknowledged to be doing so well. Not only do domestic commentators agree on our economic success but this view is also shared by the EU and OECD. Growth in exports, employment and the trend in foreign direct investment all reinforce the argument that Ireland is a very competitive location for enterprise.

I personally believe that we should set ourselves the aim of achieving a place at least in the top 10 by the year 2010 and I am sure that I have the Deputy's support in this view.