Rose Conway-Walsh presses minister on competitiveness and workers' rights

I want to thank Deputy Lawler for facilitating this as I'm chairing the National Security and Defence Committee at 9.30. This question, Minister, is to ask you to provide an update on the Action Plan on competitiveness and productivity. I'm aware that the closing date for submissions to the public consultation on the Action Plan on competitiveness and productivity is tomorrow. So could you provide information on how many submissions have you received to date and what sort of outreach the Department has taken in that area? Thank you. I want to thank Deputy for this very important question in an area that we are really moving the dial on. Ireland currently holds a strong competitive position globally, ranked seventh overall and first in the Eurozone in the annual international independent world competitive rankings. We cannot, however, be complacent and there remains work to be carried out in many areas. We are aware that there are significant challenges and it is important that we do not take our strengths for granted. In a rapidly changing and uncertain international environment, it is fundamental that we take action to address long-standing legacy issues as well as emerging threats to our competitive performance. Persistent high costs in areas such as energy continue to challenge the competitiveness of businesses, particularly our SME sector. Moreover, external shocks like Brexit and geopolitical uncertainties have embedded themselves into the cost structure, making it harder for businesses to remain competitive, whether Indigenous or FDI. In response to international economic developments and in line with a commitment in the programme for government, work is underway on the development of an action plan for competitiveness and productivity. Indeed, the government agreed to accelerate the timeframe for this work and the action plan will be presented for consideration at a competitive summit which will be held in July. The action plan will reflect a whole of government approach to domestic and drive the barriers of competitiveness, focusing on areas firmly within our own control. Its development has been informed by extensive consultation across government departments and with external stakeholders. My department has already undertaken a series of bilateral engagements with key government partners, including areas of infrastructure, housing, research and innovation. This discussion will continue over the weeks ahead. My department has also launched a public consultation which is currently open. The action plan will also be guided by the forthcoming Ireland's Competitive Challenge 2025 report from the National Competitiveness and Productivity Council. The evidence-based input will be vital to ensuring that our policy responses are targeted, proportionate and future-facing. I thank you for that update, Minister, and I welcome the work that has been done on it. I specifically want to ask you, Minister, what engagement you have had with the unions on the action plan, because my fear is that workers' rights will be sacrificed on the altar of productivity. I just think we need to be very careful in this space that we bring workers and business together, that it is not further division and polarisation between workers and businesses. But I also, the threat of international trade tariffs will be used, what I'm afraid of is that they'll be used as a fig leaf to guillotine employment rights and to usher in bad trade deals like CETA and renege on climate commitments. We all want a strong economy, but there must be balance and the business sector, which I have engaged with, are pointing to the lack of housing, pressures on services and the diabolical cost of living as the biggest threat to business expansion. So, have all of these issues been taken into account in the action plan? So, I just think it's really important that we have a sustainable plan going forward that will address the cost of living and the cost of doing business. Thank you Deputy. Minister. Thank you Deputy. And first of all, I would say no government has done as much for workers' rights as the previous government, which I was a member of, in terms of banning zero-hour contracts, bringing in tips legislation, more agile practices in the workplace which we have seen and the fruit that it brings. We have introduced a statutory sick pay scheme. We have turned the dial on a number of areas that have been neglected for years, but also it is my job and responsibility to ensure that businesses remain viable. I have met with the union leaders over the last number of weeks in connection with the work in my department. They have expressed concern in some areas, but also they have acknowledged the huge amount of reforms that have been carried out. We have the biggest reform of employment law now through the Employment Law Review Group who are examining it. It is laws that affect so many citizens right across our country, but I am keen to really ensure that businesses remain viable. We have our cost of business advisory forum which had its inaugural meeting last week. We have a small business unit established in the department and we are changing the dial by doing things simpler, lighter, faster. That is going to be my approach in the department to ensure that we are really incentivising the Indigenous economy in our country. Thank you Minister. Deputy Deputy. Thank you Minister and I am glad to hear you saying that because you know over the years and in fairness Fine Gael have been in government for 14 years and the Indigenous businesses have been so far left behind. We have a huge ramping up. When you look at the figures in terms of you know FDI and they speak for themselves and you even you know you speak about competitiveness and you're not wrong on the figures that you're putting forward, but what you do is dismiss the figures in terms of competitiveness of the region and Minister Dillon will know this. We're in the bottom seven percent in terms of competitiveness in the EU index, in infrastructure in the West and the North West region. We are, Minister. We are. The facts speak for themselves. But yesterday I participated in a discussion on the Enterprise Committee regarding the EU omnibus package and we know that the Draghi report indicated serious competitiveness deficits across the European Union which absolutely need to be addressed. But I have huge concerns about both the contents of this proposed legislation and the manner in which it's been introduced. So absolutely we need simplification but what we don't need is deregulation. Minister. Thank you. First of all Cahirlough, let's bust this myth. The Indigenous economy in our country is at record levels. Currently Enterprise Ireland are supporting 234,000 jobs in our country. Our exports are at record level 36 billion euro. Enterprise Ireland companies spend 39 billion euro in our wider economy. And you refer to the FDI sector. There are some very significant foreign direct companies in our country. One in the semiconductor space, for example, has interactions and built in 831 SMEs into its supply chain. That's from Bannehill concrete to Ciernan steel in Longford. How important is that to our indigenous economy? And that's what I'm trying to do. Close that eco cycle to ensure that our SMEs benefit from the presence of our FDI sector. That is happening in front of us. And just to be very factually clear, Ireland is the most competitive economy in the eurozone. I want to make sure that doesn't change. And the actions I will take will be ensuring that our businesses have the best environment to grow, that we are supporting viability and ensuring that we continue to grow our economy, like the 90,000 extra jobs we have over the last year. That's 90,000 families with an extra income coming in. Thank you, Minister. Minister, what you are saying is not compatible with what we are getting from business organisations and what we know in terms of businesses who are really struggling right now. They are struggling with energy costs. They are struggling with red tape, with so many different things. So that has to be addressed. So it is not right to say that everything is okay for businesses and for indigenous businesses here. That's your, you're on your fourth. You've been in three times. Was I? Yeah. All right. Sorry, I wasn't. Sorry, I wasn't counting. Now, well, I am sorry. I think the Minister gets my message. I thought my figures were wrong. Thank you.