In advance of the first sitting of the new Dáil, IBEC, the Irish business representative group, urged the incoming Government to focus on the need to address Ireland’s economic challenges.
Competitive enterprises have delivered our success to date. IBEC says that no policy positions can be contemplated that will impact negatively on their ability to win increased market share in the global economy.
IBEC Director General, Turlough O’Sullivan said: "While the outlook for the Irish economy has become less certain in recent months, strong economic growth can be maintained over the lifetime of the next government if the right policy decisions are taken.
"As a small open economy we need to return to trading successfully in order to maintain sustainable economic prosperity. Our share of global trade has fallen significantly in recent years as Ireland’s export growth has stalled. Between 1995 and 2001 our merchandise exports grew by over 250%, but between 2002 and 2006 they have fallen by 6 %."
The growth in the period 2002-2006 has been against a backdrop of the longest sustained global expansion, since the late 1960's.
O’Sullivan also urged the new Dáil to address Ireland’s competitive challenges, including inflation and high energy costs, and stressed the need to ensure that the economy’s productivity performance is improved.
"Strong productivity growth is the key to ensuring high living standards.
Ireland’s productivity performance has slipped considerably in recent years, but the new government can redress this by providing improved supports for R&D, lifelong learning, education, energy efficiency and by ensuring timely and efficient delivery of infrastructure under the new National Development Plan," he said.
"Tackling inflation must be a priority for all the social partners. The next Government must ensure that it controls the prices charged for services supplied by the public sector. It must also ensure that current expenditure and public sector pay costs in particular are curtailed, in order to ease inflationary pressures in the economy," concluded O’Sullivan.
Export Performance and Competitiveness of the Irish Economy
