THE TÁNAISTE has warned a number of professions that the Government will not back down in its drive to increase competition and get better value as it tackles the economic crisis.
Specifying “engineers, architects, the legal profession, dentists and others”, Mary Coughlan told the MacGill Summer School at Glenties, Co Donegal, last night she would be submitting a report to Government on the issue before the end of the year.
Observing that there were sectors which had yet to feel the “chill winds of economic reality”, the Tánaiste said “certain professions” had yet to reveal how they intended to reduce fees and charges and she went on to accuse them of “economic conceit”.
Pointing out that the Competition Authority had issued a number of reports on sectors such as professional services, banking and utilities, she said implementing its recommendations was essential to remove “bottlenecks” in the way of competition. She stressed the need to eliminate “structural rigidities” that had contributed to high costs, and said there was a concerted effort on the part of Government to “challenge vested interests across the sheltered economy”.
In response to questions on the McCarthy report on public service staffing and expenditure, Ms Coughlan said she had instructed her department and think-tank Forfás to carry out an evaluation across all Government departments, assessing the impact of the report on employment and on the productive sector.
Responding to a question on opportunities for unemployed people with minimal education, Ms Coughlan said: “everyone has a role”.
“This is where McCarthy runs into trouble because there is no social policy perspective and that is because it is basically dealing with money,” she added.
Addressing a session entitled “Creating the Smart Economy”, she said: “It is my view that we must never again allow costs to drift out of line with those of our competitors. We have learned a harsh lesson, but as a Government we have acted with resolve and will continue to take the necessary actions to restore our external competitiveness.
“There is more work to be done. There are certain sectors where competition and the chill winds of economic reality have yet to reach. Certain professions have yet to play their part and have yet to tell us how they will reduce their fees and charges. There is no place in an Ireland where the majority have to make painful choices for this level of economic conceit from any sector.”
The Tánaiste told the school: “The Competition Authority has tended to focus its efforts, especially its advocacy efforts, on the non-traded sectors of the economy.
“The authority has issued a number of reports in the past few years on non-traded sectors, including the areas of banking, utilities and professional services such as engineers, architects, the legal profession, dentists and others.
“Implementation of the authority’s recommendations is essential to remove competitiveness bottlenecks in the economy and to deliver better value and more innovation in those sectors.
“It is my intention to submit a report to Government before the end of the year outlining the progress achieved on the implementation of these prioritised recommendations.
“Across Government there is already a concerted approach to eliminate structural rigidities and competition bottlenecks that have contributed to high costs. Just last month, for example, we confirmed our intention to ban upward-only rent reviews. My colleague, the Minister for Health and Children, is also taking action to drive down health costs.
“These are examples of the cross-Government effort under way; an effort that must challenge vested interests across the sheltered economy,” the Tánaiste said.
