Tánaiste Mary Harney in the course of her address today (Wednesday 2nd June 1999) at the IBEC Executive Lunch said that "Irelands economic success is due to the improvement in our international competitiveness."

"We improved our ability to compete on international markets by pursuing a particular range of policies. Our future economic success will depend on our ability to continue that process, to build on what has been achieved already, to persevere with policies which can yield further success and to devise new and imaginative policies to cope with the challenges which lie ahead," the Tánaiste said.

The Tánaiste spoke on "how competition at home can drive competitiveness abroad" and detailed those area where competition has impacted on the economy.

"In 1985 total air passenger numbers between the UK and Ireland amounted to 1.8 million. That year the air transport market between the two countries was liberalised and opened to competition. Now air passenger numbers between the UK and Ireland are close to 9 million, a truly spectacular increase in little more than a decade."

"Behind those headline figures lies a very significant part of Ireland's recent economic expansion. Low-cost air access triggered an explosion in tourism and as a result, pubs, clubs, restaurants and hotels are booming ultimately leading to higher employment.. The introduction of competition was the key which unlocked the real potential of the tourist market."

"The liberalisation of the telecommunications market will open up vast new vistas of opportunity for Irish companies and for Irish people. Costs are falling; choice is improving. For the first time in the history of Irish telecommunications the customer is the one who is calling the shots; and that is good for our country, good for our economy."

"We must look at how can we use competition at home to make our country and our economy more competitive abroad."

"We can start with telecommunications. If we vigorously promote competition in the telecommunications sector I believe that this country can become one of the most attractive locations in Europe for US investment in this sector."

"We need international connectivity by means of broadband infrastructure - our lack of this facility at present is a competitive disadvantage. The government is working with a number of international suppliers and we expect to have major additional broadband capacity on stream next year. This will facilitate our drive to become a major e-commerce hub."

"Deregulation may not be the whole story; but without deregulation and liberalisation there will be no story. International capital is mobile; if it can't get what it wants here it will get it elsewhere, and only a liberalised market can satisfy the needs of international investors."

"We have seen for several years now the benefits of liberalisation in the aviation sector. We are now seeing the benefits of liberalisation in telecommunications. Why shouldn't we pursue the same benefits in other areas of our economy also.?"

"I believe that privatisation can and must be used as a mechanism to introduce competition into key sectors of the Irish economy. I have no interest in converting public monopolies into private monopolies. Indeed, if we must have monopolies then they should be public monopolies operated in the public interest."

"We must be open to the possibility of introducing an element of competition into the provision of public infrastructure. Private-sector consortia may be able to deliver major road or rail projects more speedily and more efficiently than is possible under the present system."

"I believe that they should be given the opportunity to do so and that is why I strongly support yesterday's government initiative on Public Private Partnerships."

"You won't hear it said very often, but Ireland's economic success has been built on liberal capitalism. Government created the climate; business created the jobs."

"Economic liberalism has served us well to date. A return to the days of state monopolies in aviation or telecommunications, for instance, would now be unthinkable. Economic liberalism can serve us equally well in the future if we embrace it enthusiastically."