Bruton says exporters are undermined by failure to control costs

IRISH EXPORTERS are being undermined by the Government's failure to control the rising cost of doing business here, according…

IRISH EXPORTERS are being undermined by the Government's failure to control the rising cost of doing business here, according to Fine Gael finance spokesman Richard Bruton.

He said the latest figures from the Central Statistics Office (CSO) showed a 3 per cent fall in the export of goods in the first five months of this year compared with the same period in 2007. Service exports also fell back significantly in the early months of the year.

"Irish exporters also suffered a further 5 per cent price cut in the year to July, as international competition intensified and the euro climbed against sterling and the dollar. Prices for Irish exports have now fallen by a quarter since 2000," said Mr Bruton.

He said the contrast between the falling prices received by Irish exporters and the massive cost increases they were obliged to pay for Government-provided or regulated services was at the root of Ireland's competitiveness problem.

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Mr Bruton listed a number of developments since 2000:

• The cost of local water supply, refuse collection and other miscellaneous services is up 129 per cent;

• The cost of electricity is up 65 per cent;

• The cost of building and construction is up 61 per cent;

• The average cost of local authority rates is up 53 per cent;

• The cost of postal services is up 47 per cent;

• The cost of financial services is up 28 per cent.

"Irish cost competitiveness has been shattered by these increases that have resulted from Government mismanagement and the botched regulation of key sectors of the economy, particularly energy, communications and local government," he added.

Labour Party Senator Alan Kelly said that the lay-off of two dozen workers at Taylor Made Glazing in Templemore yesterday was the latest job loss to hit Tipperary North.

"Thurles has lost five industries one after another, most recently Premier Foods, which closed in the early summer, while Nenagh has also lost a number of jobs in recent times. The job creation agencies have done nothing for North Tipp in recent years and it is a quarter of a century since the IDA brought a major industry into the area," said Senator Kelly.

He maintained that the Live Register figures for Tipperary North surged in the past year, rising 40 per cent from 2,577 in July 2007 to 3,596 last month.

"This is disastrous and needs an urgent response from Minister for Employment Mary Coughlan and industrial development agencies, who must now make Tipp North a priority area," he said.

Stephen Collins

Stephen Collins

Stephen Collins is a columnist with and former political editor of The Irish Times