Ibec welcomes Action Plan on Competitiveness and Productivity

• Alignment between Government and Business on key aspects of plan including innovation, infrastructure, energy and regulation viewed as positive step forward
• Ibec calls for adequate resourcing and accountability to build momentum behind plan

Ibec, the group representing Irish business, has welcomed the publication of the Government’s Action Plan on Competitiveness and Productivity, noting the strong alignment between elements of the plan and Ibec’s Our Business Ambition campaign launched in May.

Ibec described today’s announcement as a very positive and important step in future-proofing Ireland’s economic model in a time of global change. The group stressed that Budget 2026 must provide the necessary resources to underpin the ambitions laid out in the plan and that the Government must ensure accountability in delivering all aspects of the plan, particularly the 26 priority items announced.

Ibec’s Our Business Ambition campaign, a series of policy papers covering digital, energy, regulation, infrastructure, skills, and innovation, set out clear and actionable proposals in advance of the Government’s plan.

Ibec Executive Director of Lobbying and Influence, Fergal O’Brien, said:

“Over the past year we have experienced unprecedented levels of global trading uncertainty and our competitiveness has been significantly undermined in our vital trading relationship with the US. Day to day investment decisions have been delayed or paused, global economic realignment is taking shape in boardrooms worldwide, and businesses are actively planning for different future scenarios.

This Action Plan sets out practical and timebound measures to improve Ireland’s overall competitiveness. It is vital to ensuring that we secure future international investment while creating the right conditions for Irish businesses to grow and internationalise.

We are especially pleased to see a number of our key asks from the Our Business Ambition campaign reflected in today’s announcement, including greater ambition for innovation investment, a commitment to increase public funding to match our competitors, reform of the R&D tax credit, and the development of a new national Life Sciences Strategy.

Ibec has long highlighted the negative impact of excessive regulatory burdens on businesses, especially SMEs. The inclusion of a ‘Red Tape Challenge’ to reduce regulation across all sectors, and the application of an SME test across all government measures, is an important step forward.

Infrastructure remains the single biggest challenge to Ireland’s competitiveness. We welcome the commitments to remove barriers to delivery, such as legal reforms, expediting the EPA Bill, and implementing the outstanding elements of the Kelly Report to accelerate investment decisions.

Finally, the plan recognises the challenges posed by Ireland having some of the highest energy prices in Europe. This recognition is welcome as are plans to examine ways to reduce these costs. These proposals must become tangible if we are to continue to be competitive in energy intensive sectors.”