Labour warns against 'complacent' State

Political reaction: The Enterprise Strategy Group's review of the country's preparedness to face future global competition shows…

Political reaction: The Enterprise Strategy Group's review of the country's preparedness to face future global competition shows that Ireland "cannot become complacent", the Labour Party warned last night.

"We cannot simply assume that the model of economic development which served us well in the past will deliver the jobs we need in the future," said Labour Wexford TD, Mr Brendan Howlin.

Calling on the Government to quickly outline its response to the report, the Labour enterprise spokesman said it had highlighted weaknesses in the relationship between, and within, Government departments.

"A vital element of the report is the need for 'joined up' Government as it relates to enterprise strategy. It is a serious indictment of the FF/PD government that, despite their claim to promote enterprise-friendly policies, the report concludes that 'Ireland has lost its former ability to respond quickly and flexibly to identified needs and that there is no longer a clear focus on enterprise as a driver of economic growth'," said Mr Howlin.

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It highlighted the need for Ireland to "move up the value chain", particularly by improving research, product development, and sales and marketing.

"It is a striking fact that many of the new jobs which Ireland must seek to create will be filled by people who are already at work," he said, which highlighted the need for continuous training.

However, the Government last year made changes to social welfare rules to actually prevent unemployed parents getting childcare benefit, thus preventing them from joining education or training courses, he said.

Welcoming the report's recommendations about improving marketing standards, Mr Howlin said Irish-owned firms "with a few exceptions" have left marketing of Irish-produced goods to the multinational companies.

"If we are to compete, we need the sort of international marketing and sales expertise proposed to bring Ireland closer to customer needs," said Mr Howlin, in an initial comment on the lengthy report.

Upcoming European legislation will require companies to consult more widely with their workforces, he said: "We should be moving on this already, to regard it as an opportunity, not a threat," he said.

"We must develop new ways for people who work in enterprise to be consulted and involved in the running of their enterprises and to share in their financial success," he said.

Urging the Government to move quickly, he said: "It must not be allowed to gather dust, or become lost in a maze of committees and working groups, as so many other reports have done."

Meanwhile, Fine Gael TD Mr Phil Hogan welcomed the emphasis in the report on research and development investment and on improving the sales and marketing skills of Irish-owned companies.

However, he said: "Some of the institutional changes recommended in the report seemed to be a reversal of the changes introduced some 10 years ago with the Culliton Report, which merged An Bord Trachtála and Eolas into Enterprise Ireland.

"It is surely an indictment of the current Government that a report of this nature has to recommend that the Cabinet should schedule twice-yearly meetings dedicated to enterprise and to prioritising cross-departmental responses.

"The multitude of regulators established by the Government has failed to deliver more competition and lower prices for the consumer," said the Carlow/Kilkenny TD.

Green Party TD Mr Eamon Ryan said the report echoed many of the arguments that the Greens have "been making for years" that Ireland must no longer just depend on a low-tax regime to attract overseas investment.

Instead, it must focus on research and development, a world-class education service and sales and marketing skills "to keep us ahead of the international competition."

A succession of report, Telesis in the 1980s, Culliton in the 1990s, have all been "saying the same thing, that we need to move up the value chain and develop our own enterprise base. However we have done very little to act on this consistent advice."

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times