Latest news with #NationalCompetitivenessAndProductivityCouncil
Irish Times
7 hours ago
- Business
- Irish Times
Businesses need access to water and electricity first, never mind broadband
The bigwigs in Government and those paid to promote Ireland Inc love to wax lyrical about Ireland's business 'ecosystem' and how attractive we are to do business with, but a report this week laid bare the problems we face. The almost 100-page review by the National Competitiveness and Productivity Council on Irish competitiveness painted a picture of continuing decline, even though we still place relatively highly in international rankings for now. The council has big concerns that Ireland's competitiveness is being eroded – and eroded quickly. That poses problems, because if we are less competitive then we are less attractive for companies to make or retain investments in. Further to this, while many of Ireland's headline economic indicators paint a very rosy picture, the council believes that underneath the bonnet is an economy under a lot more pressure than appears at first glance. READ MORE The key issue is infrastructure – and we're not talking about high-speed broadband here. Cantillon has heard of a number of business investments having to be shelved due to issues with access to basic stuff like water and electricity. [ Irish demand for infrastructure, services and employees 'never been higher', says KPMG Opens in new window ] What sort of message does that send back to corporate headquarters across the Atlantic? Certainly, it is not the type of thing you think about when an advanced western European economy comes to mind. Another concern in council circles is the sense that regulators operate in splendid isolation whereby different arms of the State are in effect working against each other. Some situations have emerged whereby foreign workers – often in construction – have arrived on Irish shores and been provided with work permits by one arm of the State but have not had their visas processed in time by another, and the permits have been withdrawn. Make it make sense. [ Ireland's infrastructure is 32% behind international peers, IMF finds Opens in new window ] On the planning side, while the number of planners at An Coimisiún Pleanála has grown, a lot of these were drafted in from the local government system, so it was more a rearranging of the deck chairs rather than any real increase in overall capacity. There is a sense in the council that all this is creating reputational damage for Ireland abroad at an already challenging time. If you make yourself less competitive, someone else will come along and eat your lunch.
Irish Times
2 days ago
- Business
- Irish Times
Ireland's competitiveness on downward trend just as major challenges move into focus
Ireland's competitiveness is on a downward trend, and there remains a 'critical need' to address key infrastructure deficits, at a time when the country's economic outlook 'firmly tilted to the downside', according the findings of a major report. The report, Ireland's Competitiveness Challenge 2025, was drafted by the National Competitiveness and Productivity Council , which advises the Government on key issues facing the economy. While Ireland is ranked as the most competitive country in the euro area and the seventh most competitive economy in the world, it has fallen from second place just two years ago. The decline was largely due to a drop in 'business efficiency' from third place to 11th. READ MORE A key issue highlighted by the report is shortcomings in Ireland's critical infrastructure, such as access to water and electricity. 'There remains a critical need to enhance the delivery of our economic infrastructure to address growing deficits,' the report notes. [ Ireland slips two places in 2024 global competitiveness league Opens in new window ] 'Significant infrastructural demand arising from strong population growth, in combination with an insufficient supply response has resulted in growing deficits across housing, energy, water and transport.' The report says planning delays 'continue to hamper our ability to meet targets', and that the Government should consider the introduction of mandatory timelines in relation to licensing, including for environmental licenses. The council says productivity in the construction sector remains 'unacceptably low' in a period of 'critical need for increased output', and that there is a need to 'better understand' the drivers of this. How the wealthy are buying up land to avoid inheritance tax Listen | 22:03 The report also deals with personal injury claims, which it says are emerging as a 'major cost driver' for businesses in Ireland through their 'significant influence' on insurance premiums and risk assessments. Legal costs in litigation are 'disproportionately high', it says, calling for a re-examination of the methodology used to benchmark the level of awards in advance of the next review of the personal injuries awards guidelines. Indeed, the report deals extensively with the cost of doing business, which it says 'continues to present significant competitiveness challenges despite overall economic resilience'. [ Banking, housing remain challenges to Ireland's competitiveness, NCPC report says Opens in new window ] It notes that labour costs in Ireland 'have risen sharply' in recent years and are projected to continue increasing due to wage growth and public policy moves to improve working conditions. The report also refers to the new 'enhanced reporting requirements', which require employers to provide detailed reporting on expenses paid to employees or directors without the deduction of tax, as a 'new source of increased labour-related cost', and calls for them to be reviewed. 'For employers submitting relevant returns outside of standard payroll filings, this represents a new administrative burden,' it says. 'There is a concern about the proportionality of requiring all employers to provide such information.' Some 11,170 company liquidations occurred last year, with the number of insolvent liquidations up threefold to 1,917. Meanwhile, the number of solvent liquidations was higher than in any of the previous 10 years. Some 320 new companies in the hospitality sector and 276 new companies in the retail sector were incorporated in the first five months of this year. Both numbers were down by almost half on last year. The council believes all of the issues outlined in the report are harming Ireland's competitiveness at a time when it is already under pressure from 'uncontrollable' geopolitical factors such as US President Donald Trump's aggressive trade policies. Indeed, the report notes the concentration of trade with partners in the United States 'has been jeopardised' in recent months, and calls on the Government to help Irish firms to diversify export markets and supply chains. It says the risks to Ireland's economic outlook 'remain firmly tilted to the downside', while efforts to incentivise reshoring by US multinationals and the repatriation of intellectual property out of Ireland could have 'major and lasting implications' for Ireland.
