NCC outlines threats to competitiveness

High prices, wages, and competition from EU accession countries and emerging Asian markets are threats to Irish competitiveness, the National Competitive Council said today.

The warning was made as the National Competitiveness Council (NCC) today launched its seventh Annual Competitiveness Report. The new Minister for Enterprise, Trade and Employment, Micheál Martin, performed the launch.

The Annual Competitiveness Report (ACR) benchmarks Ireland’s competitiveness performance against 15 other countries.

Speaking at the launch Minister Martin said: “This Government is not complacent about our future economic well-being and understands that national competitiveness and social progress go hand in hand. For this reason, we have put in place a process to carefully consider the recommendations contained in this year’s competitiveness reports by the NCC.”

This year’s ACR confirms that Ireland’s economic performance has been impressive in 2004, with accelerated growth, foreign investment picking up and unemployment remaining low.

William Burgess, chairman of NCC said, “At a time of such strong performance, it may seem untimely to focus on emerging threats to our future prosperity. Yet this year’s competitiveness reports show that the pressures on our competitive position going forward are considerable.

"We need to further improve our competitiveness in order to ensure that the current strong economic performance is sustained into the medium-term”.

“Economic growth and social progress are two sides of the same coin and our competitiveness is crucial to boosting living standards and quality of life in our society.”