Enterprise, Trade and Employment | Ensuring of Ireland’s competitiveness in the trade and industry sectors in an increasingly competitive world market

QUESTION

To ask the Minister for Enterprise; Trade and Employment the extent to which his Department continues to ensure the competitiveness of this country’s trade and industry sectors in an increasingly competitive world market; and if he will make a statement on the matter.

REPLY

Ireland is recognised as one of the most competitive economies in the world, and performs well in international rankings of competitiveness. In June 2023, Ireland was ranked as the 2^nd most competitive country in the world in the IMD World Competitiveness Rankings. The 2024 iteration of these rankings are due to be published in the coming weeks.

The Government receives advice an issues relating to Ireland’s international competitiveness from the National Competitiveness and Productivity Council (“NCPC”). In May 2023, the NCPC published its triennial report, Ireland’s Competitiveness Scorecard, which provides an analysis of Ireland’s competitiveness performance based on internationally comparable data and the latest international rankings. The NCPC made a number of positive findings regarding Ireland’s competitiveness performance.

The essential conditions underpinning Ireland’s competitiveness position are relatively robust. Ireland has a strong and stable fiscal position, with sound institutions, a supportive business environment and strong demographic endowments. Ireland is recognised as a highly open economy, with net trade contributing significantly towards annual growth.

Ireland’s international competitiveness is also reflected in the continued resilience of the economy at a challenging time for the global economy, and in the strong productivity growth in the highly globalised foreign-dominated sectors.

However, there are a number of areas where Ireland could seek to improve its performance and competitiveness position. These are outlined in the NCPC’s most recent annual Ireland’s Competitiveness Challenge report, published in September 2023. This report includes 19 recommendations for Government concerning: the costs of doing business; infrastructure delivery; energy generation and consumption; and research, development and innovation – all critical aspects of our current and future competitiveness. My Department has lead responsibility for four of the Council’s recommendations. The Government has issued a formal response to this report which sets out plans to address these recommendations.

My Department continues to pursue pro-enterprise and pro-competitive policies. Published in December 2022, the White Paper on Enterprise 2022-2030 sets out Ireland`s industrial policy for the medium- to long-term, building on Ireland`s strengths of an open economy with strong trade and foreign direct investment, a vibrant innovation hub, and a resilient labour market. This review of Enterprise Policy was motivated by an awareness of a changing enterprise landscape posing new challenges, including shifting patterns of globalisation driven by geopolitical change, disruptive technological innovation, and lagging productivity in parts of the indigenous sector of the economy.
It is important that we do not take for granted the underpinnings of our success, and that we are proactive in addressing our weaknesses. As a small, open economy being competitive internationally is critical to the continued success of the Irish economy. The Government looks forward to continued engagement with the NCPC on these issues.