Competitiveness - All costs are related

AS anyone who bought a car two or three years ago will confirm many cars are cheaper today than they were then. These price reductions and scrappage schemes may have saved the car industry and contributed to the 30% increase in sales in January.

This proves that consumer confidence can be rebuilt by offering better value.

In another development yesterday the Government announced a review of wage fixing mechanisms as part of our commitment under the EU/IMF rescue plan.Some of these arrangements were made in very different times, especially in the construction sector, and have little or no relevance today.

Many workers have endured significant reductions in income and are likely to face more. This is unsustainable if other costs continue to rise. If workers’ wages are significantly cut again then food retailers, the professions, health insurers and fuel suppliers will have to follow the car industry’s lead and cut prices.