Business group's warning on economic competitiveness

There is overwhelming evidence that the economy has lost competitiveness, it was warned today.

Ahead of delivering a submission to the Government on the 2006 Budget, the Irish Business and Employers Confederation (IBEC) said there were concerns that growth in the economy was unbalanced.

The employers’ group warned there was evidence the economy has lost competitiveness which was shown through a weaker contribution from the exposed manufacturing sector despite the relative buoyancy of the global economy.

The organisation said productivity was stagnant and in some sectors it was declining.

IBEC said the Budget submission outlined remedies to address these problems in both the public and private sectors.

Turlough O’Sullivan, the director general of IBEC, and the organisation’s director of economic affairs, Danny McCoy, are to hand the Budget submission to the Governent today.