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Dáil Éireann díospóireacht -
Tuesday, 5 Nov 2002

Vol. 556 No. 3

Written Answers. - Industrial Development.

Bernard J. Durkan

Ceist:

101 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to a perceived lack of competitiveness in Irish industry; if she has identified the cause or causes; if she proposes any remedial action; and if she will make a statement on the matter. [20383/02]

The competitiveness of the economy is kept under review by the national competitiveness council, which advises the Taoiseach and I each year. The council's annual competitiveness report for 2002 will be launched later this month, as will its annual competitiveness challenge document in which it sets out its assessment of the key challenges we face.

While I do not wish to anticipate what the council may say, I believe the competitiveness challenges we face are broadly known. I had occasion to refer to many of them at the recent plenary session of the PPF and I will briefly recap them now. We are in a period of uncertainty and volatility in a world economy that faces immense challenges of creating new and sustainable growth. The drivers of competitiveness that have brought us success in the past are not the same as those needed for the future. Low business costs, in terms of wages and taxation, have been important factors in encouraging and maintaining investment in Ireland. Wage and unit costs have increased rapidly recently, however, as have the prices of other business inputs. This growth in costs must be moderated while we pursue strategies to move to higher value-added, knowledge-based activities. Making this shift requires investment in education and research capabilities and enhancement of our ability to adapt and use technology in enterprise. In parallel with this we must continue our efforts to address infrastructure deficits in areas such as transport, telecommunications and energy.

These would be huge challenges even if we were operating in a relatively benign environment, but we know that this is not the case. The current economic environment will require us to prioritise and to make difficult choices. The Government will not be found wanting both in keeping the competitiveness agenda to the fore and in taking the necessary steps to ensure that our national competitiveness, which is essential to our future growth, is sustained.

Question No. 102 answered with Question No. 93.
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