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IRELAND’S COMPETITIVENESS IS already showing signs of reversing gains made during the recession, the National Competitiveness Council has warned.
In its annual benchmark report, the NCC said that major gains have been made across a number of indicators over the last few years, reflected in the downturn in unemployment, export growth and modest pickup in consumer demand.
Launching the report, NCC chairman Dr Don Thornhill warned, however, that “while the economy is once again moving in the right direction, out task is not yet complete and complacency is one of the greatest threats to our future prosperity”.
He continued:
We cannot afford to ignore the lessons from previous mistakes. A return to economic growth in the present should not blind us to the longer term challenges which persist.
He warned that on some counts, Ireland has already begun to see recent gains evaporate.
“We are especially concerned about the very real threat to Ireland’s cost competitiveness. A range of indicators show that Ireland has already begun to slip in terms of our relative cost competitiveness, following a period of improvement during the recession.”
Losing control of costs imperils progress in job creation and damages living standards, he warned.
The Council recommended that Ireland maintain its course when it comes to fiscal probity, as well as growing and broadening its enterprise base.
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..the government & it’s many departments outsource everything from manpower to supplies via UK owned companies.. Tell me how Irish companies can be more competitive if they can’t get a foot in the door with big contracts?
It would be extremely illegal and very un-competitive if we did pick more expensive companies just because they are Irish.
Alot of Irish companies win tenders abroad at the same time as ones loosing them here.
Some departments are still endorsing “colleagues” overseas, it wouldn’t matter what hoops the Irish companies jumped through.. FACT
Show evidence of this fact
Its quite simple really isnt it,we cannot force anyone to buy from companies just because they are Irish,if they charge more for their goods and services because they pay their staff more and taxes are higher here, they will lose out to the lower cost competition,resulting in longer dole queue’s and emmigration, the people who purchase the goods and services are free to choose,the law of the market place dominates,higher costs, taxes,and charges mean less jobs,lower costs taxes and charges costs mean more jobs,you cant have it both ways.
Of course I will, I’m here solely for your entertainment, for which I’ll ruin what’s left of my career.. The evidence is there & not hard to find..
The tendering process is open across all of Europe and the largest can out in the lowest bid, thanks to scale.
The EU favours the largest corporate player in every sector and it works hard to make it so.
There are 35k lobbyists in Brussels, all plying MEP’s and EU officials with gifts, favours and money, there seems to be little interest at a European level of stopping this buying of legislation.
In short, what they mean is cut wages, or at least cap them.
Outrageous given the cost of living, high taxes, charges etc.
Then again, there’s always plenty of cheap foreign workers as long as you have the right people in power.
Did you read the article Declan?
It said we are not becoming competitive due to things like wages going up. Not down.
yes, I read the article.
it’s quite simple.
If we are not getting competitive due to wages going up, then to be competitive wages must be cut or capped.
I dont know what your job is..but wages are not the only cost in a company.
If it was that simple for you then you would see that. Articles in other papers today warm that unrealistic union demands will further damage our competitiveness
Well, the cost of materials are more or less even across the board. Transportation depends on location so barring investment in infrastructure there ain’t much can be done there. Let’s see, that leaves labour and taxes. If taxes are cut, then the value of wages increase without cost to the company as well as profits. Failing that, wages have to be cut, leading to lower costs. However this leads to less money in the economy as a) those working have less money to spare, and b) it becomes economically inviable for others to work.
Exactly what gains have been made?
Wage and rent reductions, massive drop in shipping into the country and raw material costs….
The rich are getting richer and the speculators are back
true :(
So everyone should stay poor? if theres speculators in Ireland that means theres investment, it wasn’t the property speculation or bubble which damaged Irelands finances, it was the bank guarantee.
I can’t wait for the next property boom, this place has been stagnent for the last 8 years, and people wonder why property and rents are going up
Very true,i invested in government bonds and savings certs,its debatable if its a safer option than say property,but it certainly dont create the same level of economic activity and employment.
Holden.
Are you serious?
Fu88!
The Competitive Watchdog needs to be brought for an long walk, on a leash, through the corridors of power in Leinster House.
There it needs to growl and poop at every Government Department door imposing extortionate costs on SMEs in Ireland: rates; employers prsi; upwards- only rent reviews; high taxes/ levies on employees forcing demands for still higher pay from employers; insurance levies; road tolls; vehicle tax; duties on fuel; water charges.
And now under EU rules, Ireland’s Government Contracts for goods and services must be put out to tender to other EU countries.
And which country wins the lions share of those contracts; Britain.
So much for the euro experiment!
The only two items which saw massive reductions during the recession were/are wages and property costs. Ireland’s new “God” is Multinationals and unfortunately the Government is willing to sell our souls to this new God.
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We can talk about the cost of loans to SMEs and the business environment or the cost of doing business in Ireland. Let’s not be fooled into accepting pay freezes or further reductions.
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It is not unreasonable for ordinary working families to have some headroom between wages and outgoings, it is not unreasonable to expect to be able to pay your mortgage without having to make a choice between mortgage or food, to be able to replace your car every few years, to take you kids on a summer holiday etc. even during the darkest days of Charlie Haugheys “we must tighten our belts” days and double digit interest rates I can remember very modest holidays in Kerry.
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What we see now is a segment of Irish society (salaried and self employed workers) taking the brunt of the pain, farmers being forced to reduce their cost of sales, cheap imports replacing local produce, but no quid pro quo at the cash register. It still costs the same to feed your family, see a doctor, a dentist, fill the petrol tank of the car, insure your car, tax your car (for most of us who cannot buy a new one) etc. At the same time we see many people earning 75% or even 50% of their previous salaries, but have seen income tax, USC and indirect charges increase significantly.
Looks like wages need to be cut more – its a bit of a shock after some of the good news headlines – totally unexpected from a Neocon think tank
Will we blame Garth Brooks for this…….
This article needs to be emailed to our minister for property price increases (that would be Noonan) as well as the minister for spiraling rents (housing)
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