The international financial services and e-commerce sectors will require cutting-edge regulatory systems if the State is to maintain its competitive position, the NESC report said.
Welcoming the Government's action programme on regulatory reform, the council said the regulatory target of fully-competitive markets should take account of social goals, including the need to provide services on a universal basis.
The focus in establishing targets should be on outcomes, the report said. These should include the extent to which individual sectors are dominated by a small number of firms.
"For each sector, specifically regulated, independent monitoring of improvements in efficiency and cost-competitiveness should accompany standard measures of industry concentration."
The council said the Competition Authority should continue to broaden and deepen the operation of competitive forces.
However, it added that the appointment of new industry regulators in the areas of former State monopolies such as telecoms raised the institutional issue of the relationship between the authority and the regulator. Citing Forfas, it said the relationship should be clearly defined, "and any necessary institutional changes taken".
In relation to regulatory reform, the council said it supports a number of other recommendations proposed by Forfas, the training board. Citing Forfas, it urged:
EU harmonisation efforts should be closely monitored.
the State should participate in the OECD country review programme on regulatory reform.
a detailed regulatory reform of business services and transport should be initiated.
a Regulatory Impact Analysis should accompany any proposals for specific regulatory reform.
regulatory innovation in competitor countries should be monitored systematically and effectively.
The NESC said competition addresses a critical societal concern to have desired goods and services delivered at optimum prices for the consumer.
