Reducing higher than international average energy prices, investing in infrastructure and restoring trust are the key messages in the National Competitiveness Council’s submission to the Action Plan for Jobs 2015.
Published on Tuesday, the council, which reports to Government on key competitiveness issues , has identified a range of short term actions to support competitiveness and improve the environment for job creation in its submission. Membership of the council includes Liam Casey, chief executive of PCH; Professor Peter Clinch of UCD; Shay Cody, General Secretary, IMPACT Trade Union; John Herlihy, vice president, Google Ireland; and Siobhán Talbot, group managing director, Glanbia.
Despite the recent decline in oil prices, higher than international average electricity prices remain an issue for Irish exporters the NCC said, due to the additional charges imposed under to the public services obligation (PSO). This is a subsidy paid by electricity users in order to fund electricity generation from peat and renewables.
"Paradoxically, falling oil prices have the effect of increasing the proportionate impact of the anti–competitiveness cost wedge imposed by the PSO,"Dr Don Thornhill, chair of the NCC, said, calling for action to address this challenge.
Another issue raised by the NCC is the decrease in public capital expenditure.
“If we are to keep pace with our competitors, we must invest, and the council are calling for an increase in capital expenditure to a level that at least matches the level in competitor countries at a similar level of infrastructural development,” Mr Thornhill said.
Thirdly, the NCC said that Ireland’s reputation as a secure and responsible location in which to do business is central to competitiveness. In this respect, expanding the resources available to the Data Protection Commissioner is welcome.
“Given Ireland’s drive to be at the forefront of the big data revolution, it is absolutely essential that we maintain a best-in-class data protection regime. I welcome the recent commitment to expand the resources of the Data Protection Commissioner and the announcement of the opening of a Dublin office,” Mr Thornhill said.
“Trust really matters for competitiveness - countries with high levels of trust are better placed to manage economic and social change and to achieve societal goals without excessive regulation. They also tend to experience higher levels of wellbeing. It is essential that we, as a society respond to these failures of the past and rebuild the trust of citizens in the ability and willingness of public and private bodies in Ireland to adhere to the highest international standards”.
Specific measures recommended by the council include:
