'Persistent deficits' in energy may harm Ireland's competitiveness 

The NCPC said deficiencies in energy and water present the risk that future demand by enterprises will outstrip supply.

The Government must address “persistent deficits” in the country’s infrastructure, particularly in areas of energy, water, and waste-water, as it may impact Ireland’s competitiveness as well as its attractiveness for foreign investment, the National Competitiveness and Productivity Council (NCPC) has said.

In its report for Ireland’s Competitiveness Challenge 2024, the NCPC outlined a number of challenges to the country’s competitiveness and called for the Government to take action to address them.

Among the challenges are; addressing issues relating to the cost of doing business, taking action towards building and retaining a skilled and talented labour force, as well as tackling obstacles to the planning and delivery of sustainable infrastructure.

The NCPC also called on the Government to better utilise the potential of the EU single market to enhance growth and scaling opportunities for Irish firms.

In its report, the NCPC noted that deficiencies in areas such as energy, water, and waste-water infrastructure “present the risk that future demand by enterprises will outstrip supply, with ramifications for SMEs and the investment decisions of internationally mobile foreign-owned firms”.

“This represents a significant reputational risk for Ireland.” 

The report said that Ireland’s tight labour market and high-cost environment are symptomatic of an economy operating at capacity, which is limiting “our output in multiple areas — but particularly in the delivery of key infrastructure, including housing, energy and water”.

In relation to the cost of doing business, the NCPC said an “enhanced SME test” should be implemented so that an enterprise perspective is “present across all major Government decisions”.

“This offers an opportunity to comprehensively set out forthcoming impacts on business annually,” the report said.

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In the area of building and retaining a skilled workforce, the NCPC said addressing the skills shortages in key areas — including green, digital and construction — is urgently required.

“Similarly, improved opportunities for learning are critical for addressing skills needs in the economy, particularly so in the context of the green and digital transition, and the National Training Fund has a key role to play as part of this,” the NCPC said.

It added that inward migration will continue to be important in order to fill vacancies.

Chair of the NCPC Dr Frances Ruane said Ireland has continued to “perform relatively strongly in terms of its competitiveness throughout 2023 and into 2024”.

“However, there remain significant longstanding challenges to securing Ireland’s competitiveness into the medium to long-term. It is imperative that we take the decisions around prioritisation and sequencing which are necessary to meet these challenges,” she said.