THRIVING ENTERPRISE ECONOMY KEY GOAL - HARNEY GOVERNMENT COMMITMENT TO ENTERPRISE SUCCESS SOUTH DUBLIN CHAMBER PROACTIVE - TÁNAISTE

It is a genuine pleasure for me to be here today to present the South Dublin Chamber of Commerce Business Excellence Awards.

I am particularly pleased to note the number of nominations made for these awards. The interest shown clearly demonstrates the very real and positive entrepreneurial spirit in South Dublin.

I believe that awards such as these encourage companies to aim higher in the targets they set themselves. It is well recognised that to survive businesses must have demanding targets. They must be prepared to meet the challenges of competitiveness and technological change.

Fostering the spirit of enterpreneurship is what will drive the creation of jobs, investment and growth which in my view is critical to the long term prosperity of the Irish economy. Developing a thriving enterprise economy is a key goal for me. At every level we need to encourage enterprise and innovation, open up opportunity, strip away unnecessary regulation, build on our strengths and competitive advantages, reward excellence, be prepared to experiment, and particularly tolerate the failures that will inevitably arise on the road to success.

The performance of the Irish economy during the 1990's has been remarkable and unprecedented. We now have one of the fastest growing economies in the developed world. Since 1994 employment has risen by almost 13% and our average growth rate has been three to four times the average growth of the European Union countries and much higher than the OECD average.

In the period 1994-1997 real annual GDP growth in Ireland averaged 7.7% compared to 2.3% in the European Union and 2.7% in OECD countries. It is particularly pleasing to note that this growth has not led to high inflation. In the 1990's inflation has averaged just over 2% and is currently running at less than 3%.

The fruits of this economic growth can be seen in the expansion of Ireland's industrial base. Ireland has been transformed from a producer of agricultural commodities into one of the most vibrant export-led economies in the world, with a diversified portfolio of products and services that emphasise the newer technologies.

Several Irish companies are currently world leaders in sectors such as software development and localisation, healthcare and biotechnology and value added food products.

The outstanding economic performance has been underpinned by strong export growth. International trade is at the heart of the Irish economy today, and Ireland's exceptional export growth is the primary stimulus of its overall economic growth and job creation. Ireland's total merchandise exports were worth a record £37.4 billion last year, an increase of 14% on the previous year, and the trade surplus was £9.1 billion.

I believe that the factors which have led to our recent economic success include:-

• Prudent management by Government of our public finances;
• Investment in Education and Infrastructure;
• Successive and successful Partnership Agreements;
• A low rate of Corporation Tax for manufacturing companies and the internationally traded services sector;
• Success in attracting Foreign Direct Investment; and
• Significant growth in the Indigenous Sector.

These factors have enhanced our competitiveness and encouraged enterprise. Government policy is geared to sustainable economic and employment growth, underpinned by the development of a competitive and favourable business environment. The Government is committed to ensuring that our enterprises have the right conditions and the right incentives to enable them to win success and to go on doing so.

I know that South Dublin Chamber of Commerce prides itself on being a proactive development orientated business organisation, where you focus on promoting, encouraging and facilitating investment in the local economy at all levels.

It piloted the Plato Programme which is now in operation in eight regions. This programme demonstrates how an experimental local business network can provide a coherent partnership framework through which real services can be offered to firms. It is an example of how public policy operating through a consortium of public and private sector interests - usually based on the local Chamber of Commerce - can assist the provision of real services to local networks of small firms in order to promote local economic and employment development, innovation, and market specialisation in the small firm sector.

In conclusion I would like to commend South Dublin Chamber of Commerce for organising this event and the sponsor Cable and Wireless. I would like to congratulate all the nominees and particularly the seven category winners and wish each continued success in the future.