American Chamber calls for more cuts

FURTHER cuts in Government spending and improved regulation are still needed before Ireland can truly be deemed to be recovering in terms of international competitiveness.

That was one of the main views put across to delegates at this year’s American Chamber of Commerce presidential lunch at Dublin’s Four Seasons Hotel yesterday.

Ireland has gone from being a fixture in the top 10 of the World Competitiveness Index, just a decade ago, to 19th position last year; but American Chamber president and Hewlett-Packard (Manufacturing) managing director Lionel Alexander told yesterday’s gathering that recovery is not an impossibility, but will be challenging.

“While we have seen some improvements in costs in the past 12 months, it is still too early to say that we have reached a turning point in the trend of lost competitiveness. We must see the state reduce its cost base and feed that gain into both deficit reduction and a reduced cost burden for citizens, as well as business. We must also see more positive regulation to promote competitive markets – especially in services and distribution,” he remarked.

On the competitiveness issue, Mr Alexander said that the American Chamber in Ireland will do its bit and will be presenting its own proposals to Government in the coming months.