The National Competitiveness and Productivity Council publishes Ireland’s Competitiveness Challenge 2025 report
The National Competitiveness and Productivity Council (NCPC) has brought forward the publication of the Challenge report, which was presented on the 7th of July to the Competitiveness Summit of Minsters. This followed a consultation process which the SFA took part in. The Challenge 2025 report sets out a range of key challenges facing Ireland’s economy, particularly over the medium to long-term. The Council places a clear emphasis on addressing those challenges that come within domestic control (in a sequenced and strategic way). The key challenges identified include addressing the high and rising cost of doing business – particularly those costs where Government has a role to play.
The report noted that the cost of doing business in Ireland continues to present significant competitiveness challenges, despite overall economic resilience. Furthermore, the report states that labour costs in Ireland have risen sharply in recent years and are projected to continue increasing due to wage growth and public policy choices to improve working conditions (in recognition of the importance of good-quality employment). In recognition of these pressure on enterprise in Ireland, particularly SMEs, the Government recently decided to extend the transition period for the Living Wage and to cease planned changes to sick pay.
Three of the key recommendations are as follows (see below):
- In advance of the next review of the Personal Injuries Awards Guidelines, the Council recommends a re-examination (and re-consideration) of the appropriateness of the methodology used to benchmark the level of awards.
- The Council recommends that a review is undertaken of the proportionality of the current Enhanced Reporting Requirements and consider amendments for SMEs below a certain threshold (i.e., below 20 staff and/or below €1m in annual turnover) to lower the relative administrative burden.
- The Council recommends that the Government should: (a) Advocate at EU-level for steps to ensure that the pricing mechanism for the Single Electricity Market (SEM) does not lock-in unnecessarily high prices for European consumers. (b) Consider the feasibility of taking steps to ensure that infrastructural investment in the energy, water, and waste-water systems is not solely funded by charges on the end-user (with the Exchequer to co-fund this work).
Please find full report here.
Please contact SFA Public Affairs Lead, Jonathan McDade by Friday, 1 August via email - jonathan.mcdade@sfa.ie - with your feedback.
