Minister starts process of implementing NCC report recommendations
Minister for Jobs, Enterprise and Innovation Richard Bruton TD is writing to Government colleagues to start a process of implementing the recommendations of the National Competitiveness Council’s "Costs of Doing Business in Ireland 2011" report, published today.
The report found that although there have been substantial improvements to Ireland’s cost competitiveness, many business costs remain high compared to our international competitors. Furthermore, it found that the improvements which have occurred have been cyclical rather than structural, meaning that when the economy returns to growth we risk losing this competitive advantage. It makes a number of recommendations for improving competitiveness across a range of issues including the labour market, property, utilities, and professional services, which come under the remit of several different Government Departments.
Minister Bruton is writing to Government colleagues with responsibility for each of the recommendations asking them to report next month to the cabinet sub-committee on jobs and economic planning, of which he is convenor, on the possibilities for implementing the recommendations.
"I have been saying for some time that if we are going to create the employment and economic growth we need so badly, we must focus on three things: increasing competitiveness, improving access to finance, and encouraging innovation.
"A key finding of this report is that although competitiveness has improved substantially in recent years, most of that has been due to the downturn in the economy and risks being immediately reversed when growth returns. Price levels in Ireland remain above euro area averages despite three years of negative economic growth.
"If we are to get back to the formula that created the real economic success of the mid/late 1990s and achieve sustainable growth, we must urgently address the structural problems in the economy identified by today’s report: in the labour market, in property, in utility costs and in business and professional services.
"For too long reports like this have sat on shelves and gathered dust: and although many of these recommendations are already being progressed by the new Government, it is crucial that we achieve reform across the board if we are to achieve growth again. That is why I am immediately starting a process across Government to set about implementing the recommendations, by writing to relevant colleagues asking them to identify what can be done, and asking them to report on this to the cabinet subcommittee on jobs and economic planning at its next meeting next month.
"I am determined that we must act urgently to implement reforms across the economy, in order to achieve real growth that can get people back to work both in the short term and for years to come".