Minister Martin welcomes publication of National Competitiveness Council’s Competitiveness Challenge 2005

Welcoming the National Competitiveness Council’s (NCC) Competitiveness Challenge 2005 the Minister for Enterprise, Trade and Employment, Mr. Micheál Martin T.D. said. “This year’s Competitiveness Challenge from the NCC is an important contribution to our policy making and thinking on strategic national development issues. The document identifies a vision for the future of the country as a dynamic, flexible economy. Indeed we are already on the path towards achieving that vision. The new work permits regime, our skills and training initiatives, investment in R&D and in infrastructure through Transport 21 and the considerable steps by the Government to strengthen competition, provide the essential building blocks for the dynamic, flexible economy called for by the NCC”.

The Competitiveness Challenge 2005 recognises the remarkable success of Ireland’s economic strategy over the past twenty years and acknowledges that we are currently in a position of economic strength. According to the Annual Competitiveness Report 2005, in 2004 the number of people in employment in Ireland grew strongly with almost 1.9 million in employment by the end of the year. Government finances remained healthy and Ireland ranked second out of 15 countries in terms of GDP per capita and sixth out of 15 countries under GNP per capita. The NCC have identified the principal challenges and determining factors which will determine our ability to remain competitive in the globalised world economy:

• Globalisation and increased competition
• Increased cost base
• Shift from manufacturing to services
• The knowledge society and impact of technological change
• Quality of life and demographic issues

Commenting on the challenges facing Ireland, the Minister said “For Ireland as a small open economy our economic success has been built on and will continue to be built on our ability to sell goods and services abroad. The importance of a dynamic export sector for the Irish economy cannot be overstated. In this regard achieving higher productivity now is a real priority both for individual firms and government policies. Consistent productivity improvement allows us to be more competitive on the international market, to have higher standards of living and achieve more ambitious social objectives. If we don’t place a priority on higher productivity today we forego the opportunity of higher real incomes tomorrow”.

The Minister continued, “I would like to thank Dr. Don Thornhill and the members of the Council for the significant contribution they have all made in producing this valuable report. The Council’s recommendations over the four policy areas of Taxation and Regulation, Economic and Technological Infrastructure, Education and Training, and Entrepreneurship and Innovation have outlined broad policy initiatives that aim to tackle the challenges facing the Irish economy”.

ENDS

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