Dáil Éireann Debate, Thursday - 18 October 2018
194. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the extent to which her attention has been drawn to emerging trading competitive disadvantages for small and medium enterprises here in comparison with other locations throughout the EU and the UK; the extent to which these issues will be addressed in the short and medium term; and if she will make a statement on the matter. [43048/18]
Amharc ar fhreagraCompetitiveness is integral to exports, jobs growth and as a means of achieving sustainable improvements in living standards. Improving competitiveness performance is a core focus of the work of my Department and wider Government policy and is particularly vital in light of the challenges posed by Brexit.
Ireland’s overall competitiveness performance remains positive. The Institute for Management Development shows that Ireland is the 12th most competitive economy in the world and the 3rd most competitive economy in the euro area. The 2018 Global Competitiveness Report published by the World Economic Forum on 17 October shows Ireland is holding its 23rd position in the Global Competitiveness Index and continues to be the 8th most competitive economy in the euro area and the 11th most competitive economy in the EU28. The Report shows a range of strengths – Ireland is ranked in the top 15 in relation to the Cost of Starting a Business (4), Attitudes toward entrepreneurial risk (11) and Growth of innovative companies (14). Furthermore, Ireland scores 99.4 out of 100 in terms of Macroeconomic stability. It is an important signal to international investors. However, we are ranked low on Market size (44), our Financial system (37) and Infrastructure (34). The National Development Plan outlines the areas where the Government will substantially increase future capital investment in infrastructure and help further improve our competitiveness.
Most importantly, our improved competitiveness is reflected in strong employment growth across sectors and regions. The strong performance of clients supported by the enterprise agencies in winning exports, market share and job creation in the face of intense global competition is to be commended and reflects the competitiveness of the environment in which to do business in Ireland.
Recent reports by the National Competitiveness Council have highlighted the need to continually enhance competitiveness performance. I share the Council’s view that to further improve competitiveness we must preserve fiscal sustainability, maximise investment in infrastructure and talent, maintain cost competitiveness, and drive innovation and productivity across all economic sectors. Global uncertainty, and Brexit in particular, has underlined the importance of building competitive advantage, generating an uplift in enterprise export competitiveness and continuing to harness the benefits from trade and the Single Market to secure sustainable jobs and growth. My objective is to ensure the economy is resilient at sectoral and enterprise level to deal with imminent competitiveness challenges and to build further on the progress we have made.
My Department is driving the implementation of our research strategy, Innovation 2020. We are putting more people on the ground in foreign markets to attract investment and helping Irish businesses which export to the UK and helping others diversify into new products and markets. I launched the €300 million Brexit Loan Scheme in March 2018 this year. This scheme supports the working capital needs of companies impacted by Brexit and will be available for two years to eligible businesses with up to 499 employees. In addition, my Department and the Department of Agriculture, Food and the Marine in partnership with the Department of Finance, the Strategic Banking Corporation of Ireland (SBCI) and the European Investment Fund (EIF) are developing the Future Growth Loan Scheme as announced in Budget 2019. The €300m long-term Loan Scheme will provide businesses the opportunity to borrow for up to ten years to support capital investment.
