Ireland 'must continue to improve competitiveness'

Ireland still needs to work on its competitiveness in order to recover from the recession, according to a new study by the National Competitiveness Council (NCC).

The Costs of Doing Business in Ireland 2011 study concludes that while Ireland's costs have come down we need to ensure that savings are permanent.

Even though prices in Ireland have fallen since 2008, the cost of a range of business inputs remain relatively expensive compared to other jurisdictions, including property costs, calls from landlines and legal fees, according to the study.

“Costs in Ireland are moving in the right direction and as a result Ireland has become a more attractive location to do business, but we cannot rest on the oars," said NCC Chairman Dr Don Thornill.

"Cost reductions have resulted primarily from cyclical factors like the collapse in consumer demand, domestically and internationally. If we are to face down emerging threats such as increasing global oil prices and a resumption of inflation, Irish policy must deliver outcomes which embed lasting, structural reform.

"Only structural reform will ensure that the gains are permanent and will not be quickly be eroded upon any resumption in growth.”

Among a number of recommendations made by the NCC was that any additional taxation measures must be "designed to protect job creation and facilitate a recovery in consumer demand".

The body also called for the introduction of a "broadly based and equitable" valuation-based residential property tax, as quickly as possible.

It said the feasibility of introducing legislation to facilitate downward rent adjustments for existing leaseholders should be explored further.

The NCC also recommended the establishment of an independent regulator for the legal profession, and said that’s suitably qualified professionals, in addition to solicitors, should be allowed to provide conveyancing services.