The Government’s new action plan on competitiveness, published yesterday, contains some new directions and important commitments. Making sure that the key measures actually happen is now crucial, particularly given the uncertain international backdrop.
The plan is overdue, as it has been clear for the last few years that Ireland’s competitiveness has been slipping in important respects. Shortcomings in infrastructure have been the key focus of debate. However, Ireland is also lagging behind other countries in spending on research and innovation and the cost base in areas such as energy and legal services is out of line.
It is important, first of all, that there is Government recognition of this and a commitment to act. It has long been called for by bodies such as the National Council on Productivity and Competitiveness. The question is whether the cross-departmental focus required to push key measures through can be harnessed, as not doing so has been a key weakness in recent years. In many areas, too, Government funding will be needed.
As is ever the case with such documents, some commitments are woolly and others point to the need for further study. However, there are welcome specifics, for example to upgrade spending on research, including focusing more on the domestic sector. The document also puts a particular emphasis on the high cost of energy here and the need for infrastructure improvements. And it promises greater supports towards the growth of smaller Irish companies.
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The document also commits to a drive against “red tape” and over-regulation and has a detailed section on the legal system, pointing out that much remains to be done to speed up the process and make it less costly. Implementation of the new Planning Act may help, but more will be needed.
A plan, of course, is of little value unless it is implemented. Momentum in doing so is essential. The Government needs to use this document to progress the competitiveness agenda where, under previous governments in recent years, Ireland has fallen further and further behind.
