Dáil Éireann díospóireacht -
Thursday, 6 Nov 2003

Vol. 573 No. 5

Written Answers. - Economic Competitiveness.

Bernard J. Durkan

Ceist:

65 Mr. Durkan asked the Minister for Finance if he will take steps to address the issue of the increasingly obvious lack of competitiveness in the economy; if his attention has been drawn to the fact that Ireland's position shows considerable slippage in international ratings in this area; if he will identify the causes and elaborate on the means by which he proposes to address these issues; and if he will make a statement on the matter. [25864/03]

Minister for Finance (Mr. McCreevy)

There are many factors which impact on competitiveness in the economy. These include fiscal policy, income developments, competition and regulatory frameworks, infrastructure and labour market policies. There is also the overriding consideration that we are a small open economy which is highly integrated into the global economy through our strong trade and investment links. Therefore, economic conditions in Ireland are largely determined by our ability to supply goods and services to our major trading partners.

There are a number of publications which provide information on Ireland's competitive position including those of the National Competitiveness Council which reports to the Taoiseach. I am also aware that there are various measures of competitiveness which attract media comment from time to time. However, while I would naturally be concerned at any slippage in Ireland's competitiveness, I am also mindful for example of the 2003 IMF report which commended the Irish authorities "for their exemplary track record of sound economic policies, which have resulted in a dynamic, open and robust economy – with growth notably above the EU average over the past decade – and resilience to external shocks."

However, we cannot rest on our laurels. That is why we have consistently been pursuing policies designed to strengthen the economy's competitiveness and thereby its capacity to resume trend growth in more favourable international conditions. By the same token, the current social partnership agreement, Sustaining Progress, reiterates that the ongoing renewal of competitiveness, both within the domestic economy and internationally, is central to our overall macroeconomic policy of sustaining non-inflationary economic growth and high levels of employment. The agreement sets out competitiveness enhancing actions under a broad range of policy headings. A second progress report on Sustaining Progress was recently laid before the Houses of the Oireachtas.