Annual Report 2004

Foreword by Minister for Enterprise, Trade and Employment

2004 was a successful year for the Irish economy. The global economy continued to recover throughout the year and domestically Ireland continued the successful trend of recent years, with a sustained growth in GDP at an estimated 5.3%. At national level, we saw an upward trend in employment rates, reflecting the improvement in economic conditions that has prevailed for the last few years. The moderation in the rate of inflation during 2003 continued into 2004, with the CPI averaging 2.2 percent for the year as a whole.We had, in addition, encouraging evidence that overseas investors continue to look positively at this country as our pro-business tax and regulatory environment saw a recovery in inward foreign investment. As a Government Department that plays a central role in Ireland's economic and social policy,we have had a significant positive impact on our continuing national success in 2004, as is evidenced by this report.

It is important, going forward, to build on this in order to ensure that Ireland is successful it its efforts to support the creation of a knowledge-based society. My Department is keen to address this challenge with a view to ensuring that we build on current growth to steer a path towards continued future prosperity.

2004 saw a number of key developments, many of which, while important in the short and medium term, will bear the greatest fruit over the longer term. During 2004, a new direction for our enterprise policy agenda was developed with the publication of the report of the Enterprise Strategy Group, "Ahead of the Curve". This report outlines the challenges and opportunities facing the enterprise sector in Ireland over the coming decade and the measures we must take to achieve greater competitiveness. The Action Plan, developed at my instigation to action the recommendations of the ESG Report in order to ensure that we adapt and develop our strengths to succeed in the global economy, was approved by the Government and is being actively pursued.

Another key achievement by my Department during 2004 was the creation of a framework aimed at increasing research and development and enhancing competitiveness. This includes the introduction of a 20% R&D Tax Credit to stimulate investment and to ensure that Ireland is recognised as an economy at the cutting edge of research and innovation. Furthermore, the development of Ireland's R&D Action Plan (Building Ireland's Knowledge Economy)

A Review of Employment Rights Bodies was completed in April 2004. A number of recommendations were made, aimed at improving the functioning of the employment rights bodies on an operational and strategic level. In response to the recommendations, a programme of action has, on my recommendation, been agreed by the Government. This programme will facilitate the simplification and modernisation of procedures and provide greater transparency and ease of access for all users of the services of the Employment Rights bodies.

My Department commenced an ambitious reform of existing consumer legislation during 2004. The entire body of consumer law is being reviewed with the aim of consolidation into a modern, concise and comprehensible body of law, which is closely aligned with the growing body of EU consumer law. This will give much greater certainty to consumers about their rights, entitlements and duties, and will reduce very significantly difficulties that currently exist for businesses, consumers and enforcement authorities. The initiative will be implemented over the coming few years and is consistent with the principles of better regulation and with the strong focus that I have on the consumer.

This Annual Report describes the many and varied activities of my Department during 2004 and flags the continuing work of the Department over a longer time frame. Together with our recently published Statement of Strategy, covering the period 2005-2007, it is clear that my Department continues to make a significant contribution to national prosperity and well being.