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Dáil Éireann díospóireacht -
Thursday, 5 Dec 2002

Vol. 558 No. 6

Written Answers. - National Economy.

Bernard Allen

Ceist:

20 Mr. Allen asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason for her failure to control the cost base of the economy and the consequent deterioration of national competitiveness; and if she will make a statement on the matter. [24897/02]

John Perry

Ceist:

47 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether implementation of the recommendations of the National Competitiveness Council will take place; the time scale in this regard; and if she will make a statement on the matter. [24904/02]

Bernard J. Durkan

Ceist:

73 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself regarding the competitiveness of Irish industry; her plans to improve the situation; and if she will make a statement on the matter. [25260/02]

I propose to take Questions Nos. 20, 47 and 73 together.

I welcome the annual competitiveness report 2002, and associated competitiveness challenge document which was recently submitted to the Taoiseach and myself. The main report provides a statistical analysis of Ireland's competitive performance from an international perspective. The report establishes that Ireland has improved its ranking in 24 indicators, disimproved in 29 and remained constant in a further 14. The report confirms many of Ireland's strengths while the challenge document highlights the many challenges we face and the difficult choices which we have to make as we face an uncertain economic environment.
The National Competitiveness Council believes that both the domestic Irish economy and the global economy face difficult times ahead. Given that Ireland is one of the most open economies in the world, it is important that steps are taken to position the economy to maximise the benefits and growth potential from any upturn in the global economy.
Recent price and cost developments are highlighted in the annual competitiveness report and it is vital that these are factored into the current social partner discussions. The council also highlights the matter of escalating insurance costs as well as advocating policy measures to increase competition across the services sector to lower costs.
Tackling the insurance issue is my number one priority. Deputies will be aware that I have recently introduced a comprehensive set of inter-related measures designed to improve the functioning of the insurance market. On services, we have strengthened the powers of the Competition Authority and fully support its current focus on the level of competition in the non-traded sector. We are also committed to a vigorous programme of regulatory reform to remove unwarranted constraints on competition.
Apart from those specific issues, the Government is determined that the conditions for enterprise operating in Ireland should be as favourable as possible. This encompasses the costs that business face, the skills level in the population, the physical infrastructure, the regulatory environment and other factors. These reports and the comprehensive list of policy actions designed to enhance Ireland's competitive position will be to the forefront in our policy formulation.
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