Ireland Inc loses edge in global business

IRELAND Inc has lost competitiveness on the world stage Taoiseach Bertie Ahern told the country's business leaders yesterday.

Speaking at the IMI National Management Conference in the Great Southern Hotel, Killarney, Mr Ahern said the problem could be overcome through strategic vision.

However, Mr Ahern acknowledged that considerable progress had been made in recent years.

"The Irish economy has performed extraordinarily well by comparison with our European and international partners.

"Whether in terms of output, exports, jobs or the public finances, the Irish economy has performed, and is performing, significantly better than many others," he said.

The Taoiseach said that did not minimise the difficulties being experienced across many sectors of the economy.

"It does not lessen in any way the painful consequences of closures and redundancies. Nor does it lessen the uncertainties facing business leaders right across the economy.

"And there are many vulnerabilities in our present situation. There is no doubt that we have lost competitiveness, through increased operating costs and slower productivity growth," he added.

Mr Ahern said the impact of the international downturn has had a major impact.

"The economic slowdown has produced a deterioration in the public finances, but without affecting our debt ratio and strong primary surplus, nor indeed our preparedness for the longer term demographic changes which are causing real pain in many of our partner countries."

Mr Ahern said the challenges will be met head on.

"Firstly, we have the right strategic vision. We see Ireland at the forefront of economic and technological development.

"We have become, and we will stay, a high value-added economy. Above all, that means that we will not resist change.

"On the contrary, our task is to equip our people, businesses and policies to embrace changes, which enhance our capacity to innovate, apply new technologies and develop new products and services, and so continue to be a place where dynamic individuals and corporations want to locate," he said.