Dáil Éireann Debate, Thursday - 24 May 2018
19. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation the way in which she plans to assist businesses with challenges such as escalating insurance costs and commercial rates; and if she will make a statement on the matter. [22844/18]
Amharc ar fhreagraAddressing Ireland’s cost competitiveness remains a key economic priority for Government which continues to monitor Ireland's cost competitiveness on a regular basis.
The National Competitiveness Council monitors business cost competitiveness annually and its research findings indicate that Ireland’s cost base has improved across a range of metrics over the last five years (e.g. the cost of starting a business, communications costs, electricity prices and labour costs growth). This has made Irish firms more competitive internationally and made Ireland a more attractive location for firms to base their operations in. Despite improvements in Irish cost competitiveness, the openness of the economy means that the enterprise sector is particularly vulnerable to negative price and cost shocks which are outside the influence of domestic policymakers. Brexit also brings into sharp focus the importance of our cost competitiveness.
Government is committed to take action to address unnecessarily high costs (i.e. cost and price levels not justified by productivity) wherever they arise. A range of initiatives set out in the Action Plan for Jobs are in train across Government Departments to improve the ease of doing business, reduce the administrative burden, enhance our cost competitiveness and productivity, and drive greater efficiencies across the enterprise base.
The National Competitiveness Council and my Department and its agencies are continually engaged with relevant stakeholders on the particular policy needs required to support cost competitiveness. These stakeholders include other Government Departments, regulatory bodies, other public bodies and the private sector. In this regard, there is a role for both the public and private sectors alike to proactively manage the controllable portion of their respective cost bases, drive efficiency and continue to take action to address unnecessarily high costs. Such actions will ensure that improvements in relative cost competitiveness are more sustainable, leaving Ireland better positioned to cope with external shocks.
The Government recognises that rising insurance costs for enterprise are an issue. For this reason, the Minister for Finance established the Cost of Insurance Working Group in July 2016. In terms of my own Department’s work, in December 2017, we published the First Report of the Personal Injuries Commission, which was established on foot of a recommendation from this Cost of Insurance Working Group. Implementation of the actions in the Report of the Personal Injuries Commission will help to bring more consistency to medical reporting and diagnosis of personal injuries, leading to a better functioning personal injuries environment in the future.
The ongoing work of the Personal Injuries Commission, the implementation of the Report on the Cost of Motor Insurance and the complementary work of the Cost of Insurance Working Group should contribute to a better functioning personal injury litigation system and should also help to deliver reduced premiums for businesses.
In terms of commercial rates, the levying and collection of rates is a matter for each individual local authority. The Department of Housing and Planning has developed legislative proposals to modernise and consolidate the legislation governing commercial rates. Among the measures included in the General Scheme of the Bill are provisions to allow a local authority to introduce rates alleviation schemes to support the implementation of policy objectives, including in: local economic and community plans; Development Plans and Local Area Plans; and national planning policies.
The Government approved the drafting of a Rates Bill. The General Scheme of the Bill is currently with the Attorney General’s office for drafting, with a view to its introduction as soon as possible.
