Data to be released next week will show that Irish productivity ranks second only to that of the US, but that costs in many areas of the economy are high when compared to our key competitors and trading partners.
The report of the Forfás/National Competitiveness Council, which is due for publication next week, shows the average Irish worker's productivity in 2002 was $67,213 (€56,000), placing the Republic second to the US with $77,812. The Republic was rated second for productivity growth during the same year with 3.87, compared top ranked Holland with 4.2.
However, Ireland's high productivity ratings are chiefly driven by multinational industries such as pharmaceutical, biotechnology and high-tech sectors. Indigenous industry is understood to underperform these measures.
The report rates the Republic against 15 other countries, including the UK, Netherlands, US, Italy, Japan, Sweden and Hungary, which is due to join the EU next year. It shows that overheads like telecoms, transport and energy are more expensive in Ireland than in many of the other 15 countries.
In telecoms, the cost of a selection of national and international fixed line business calls, adjusted for inflation in each country, rates the Republic fifth cheapest, at $1259.20. Sweden tops the table with $972.60, while the UK comes ninth with $1410.50. Ireland dropped to tenth for mobile calls, with a similar selection costing $1100.74. The State is ranked 12 of 13 for standard broadband rental charges, priced at €175 by the Forfás broadband benchmarking study. Barring Germany, all other European countries in this category are cheaper. Ireland is eighth of eight for national broadband circuits rental, at €34,108.
The Republic is ranked seven of 16 for diesel prices at €0.555. It is seventh cheapest of nine for electricity at €8.34 per unit, and second cheapest of nine for gas at €6.43 per unit.
The Republic had the second highest rate of consumer price increases of all 16 countries in 2002 with a rise of 4.72 per cent. An earnings table for 2002 shows the average Irish worker earned €37,036. US workers fared better with €46,836, while UK workers were paid €34,595.
