2026-04-28

124. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Tourism and Employment the measurable improvements in national competitiveness that have been achieved since the publication of the Government’s Action Plan on Competitiveness and Productivity; and if he will make a statement on the matter. [30926/26]

We are constantly dealing with the growing challenge of improving Ireland's competitiveness. While our economy, on paper, seems strong, there are clear and persistent structural weaknesses that are undermining our ability to sustain growth to attract investment and support our people. Last September, we received the Government's Action Plan on Competitiveness and Productivity, which contains 85 actions. Since the publication of this action plan, can the Minister report any measurable improvements to our national competitiveness?

The preparation of the Action Plan on Competitiveness and Productivity, which was published on 10 September 2025, was a commitment under the programme for Government. Its delivery was expedited in response to international economic developments. The overarching objective of the action plan is to maintain and improve Ireland's position as a competitive and productive economy capable of withstanding shocks, building on our strengths and developing our indigenous enterprise base while continuing to attract investment and talent from abroad. Ireland holds a strong competitive position globally. This is reflected in our current position as the seventh most competitive country worldwide in the latest IMD world competitiveness rankings 2025. Among EU member states, Ireland ranks second. The next update to these rankings is expected to be published in June 2026. I am pleased to report that the implementation of the action plan is well under way. Currently, the vast majority of actions are regarded as in progress. A number of key actions from the action plan have already been delivered or are due for completion in the coming months. The next progress update on the implementation of the action plan will be discussed as part of the Government’s annual competitiveness summit in July 2026, with a first implementation report to be submitted for discussion at the summit. Monitoring the success of this action plan will operate across two distinct but complementary dimensions. The first focuses on practical delivery, tracking the timely and effective implementation of specific actions and commitments across government. The second assesses strategic impact, evaluating progress toward the broader goals of the plan, namely, sustained improvements in Ireland’s competitiveness and productivity. It should be noted that changes in productivity and competitiveness are typically driven by structural factors and are characterised by lasting improvements in efficiency, capacity and innovation. They will therefore require time. In that regard, to support monitoring and oversight in respect of the broader aims of the action plan, the Government will continue to seek advice from the National Competitiveness and Productivity Council.

Across many metrics, the Government is failing to address the challenges to our competitiveness and what we are hearing back from businesses. The housing crisis has worsened, with record rents and with homelessness at a record high. Employers are asking us where their workers will live. They have nowhere to live. I am a member of the Joint Committee on Enterprise, Tourism and Employment, which has been dealing extensively with the cost of doing business. We have heard at first hand from various chambers, ISME, the Small Firms Association and many more that these costs have increased significantly. Infrastructure delivery is slow and insufficient and not in keeping with demand. We have labour shortages in sectors that are crucial to our growth, such as construction. Our unreliable energy sources and grid capacity are stifling growth in many areas. On housing, we must confront the reality of Ireland's housing crisis. Our competitiveness is being eroded by a system that cannot provide affordable accommodation for its workforce.

First, I go by evidence and fact. We are the second most competitive economy in the eurozone, which is a very strong value proposition. Since the report was brought forward in relation to the action plan, we have had a number of advances. Our semiconductor plan has commenced, which is significantly attracting investment in that space. Our action plan for market diversification is building on the risks that are there geopolitically, taking advantage of the 41 free trade agreements across the European Union with 72 countries. We brought forward our action plan for collective bargaining, which we discussed earlier on. Despite the Deputy's reference to business costs, in the earlier debate she was looking to abolish subminimum rates, which would increase the costs of small shops by 30% or more. She is looking to bring in additional sick pay and refresh the living wage to bring it in more aggressively. All of those are costs to businesses. The Deputy should practice what she preaches in that regard. We have also brought forward and are working on a timeframe to ensure we lift the Dublin Airport cap. That is another important part of our tourism strategy. We brought forward our tourism strategy, A New Era for Irish Tourism, which was launched in December as part of the action plan.

That is why we proposed in our alternative budget that we would have a PRSI rebate for businesses as well to enable them to meet the cost. I know that the Minister would not be suggesting a race to the bottom in relation to workers and workers' rights. Our motion earlier was about collective bargaining and the right that workers have in other jurisdictions to access to a union. I know the Minister wants good, sustainable jobs and I am sure he has looked at the good jobs legislation that my colleague, Caoimhe Archibald MLA, is bringing forward in the North. We are facing significant skills and labour shortages in key sectors, including construction, healthcare and technology, which are all reporting struggles to recruit and retain workers. We cannot stand here and ignore what has happened with the Meta workers and the outsourcing company where jobs are really at risk as well. What is the Minister specifically doing to retain those jobs and support those workers, and has he met with those workers?

I have pointed out how we are improving the competitiveness of the economy, which is critical to ensuring we keep attracting jobs. We have about 2.83 million people working in our economy right now, which is a record. All 13 sectors of the economy are growing. That is not me saying that. It is the CSO, which is the gold standard. Real wage growth increased past inflation last year. Again, that is the CSO report, which is there for everyone to see. That shows there are very strong opportunities within the economy that is growing. In relation to Deputy Conway-Walsh's colleague in Northern Ireland proposing to ban zero-hour contracts, we have done it. They are proposing to bring in tips legislation; we have done that. They are proposing to improve the work-life balance; we have done that already. So, a number of the initiatives that have been brought forward in the Deputy's colleague's Bill have already been acted on in this State's jurisdiction. We also brought forward the action plan on collective bargaining in advance of the target within the EU, and I made the commitment, irrespective of the European Court of Justice case, that I would accelerate it and bring it in. That is a strong testament to workers right across the economy.