THE GOVERNMENT’S plan envisages growth in exports fuelling domestic economic recovery.
It believes cost reductions combined with targetted assistance to a range of exporting and domestic sectors could see unemployment dropping from 13.5 per cent to 9.8 per cent by 2014.
The drive to foster employment and reduce costs, including wage costs, will in turn feed into reductions in social welfare rates so as to combat welfare traps.
The report says the Office of Public Works, which buys and rents property for the public sector, will lead a co-ordinated effort to reduce office rents by up to 15 per cent.
It will also review the efficiency of property arrangements across the public sector.
On professional services, the report says that while costs have fallen in some areas, including accounting, the cost of legal services remains high.
Competition in the professions is to be promoted and overseen by an independent figure reporting to the Government.
A package of measures aimed at the legal profession is to be introduced including more tendering by the State, the enactment of the Legal Costs Bill and additional moves based on work by the Legal Costs Working Group and the Competition Authority.
Competition is to be increased in public transport, waste costs are to be targetted, and increased competition in the generation and supply of energy are to be encouraged so as to reduce costs.
The plan notes that Ireland has continued to attract foreign direct investment through the recession.
The Government is to encourage the development of niche areas and Government departments are to seek to form partnerships with multinationals to develop, trial and roll out innovations which improve services in Ireland and could have worldwide application.
Indigenous business development is to be encouraged through the improvement of the business expansion scheme, the overhauling of the bankruptcy law, and the extension of the 15-day prompt payment rule beyond Government departments to the wider public sector.
“The Government will investigate the potential for providing access to vacant or under-utilised public property for entrepreneurs or business start-ups to use as incubation centres,” the plan states.
The recommendations of the innovation taskforce on making Ireland a global innovation hub “will be delivered”, the report states.
Enterprise Ireland is to introduce a new approach to providing seed capital to innovative start-ups and is to launch a campaign to attract overseas entrepreneurs to Ireland.
The number of industry-led research competence centres is to be doubled to ensure that industry drives the research agenda.
On manufacturing, the report accepts that the cost environment has put the sector under strain but says the constituent sectors can reposition themselves by moving up the value chain.
Improvements in cost competitiveness will support medium-term growth.
The export of services is expected to constitute 70 per cent of total exports by 2025, having been just 21 per cent in 2000.
The plan commits to the continued rollout of broadband, assisting SMEs in setting up websites and promoting online sales, and exploring the potential of green financial services.
In agriculture, the report envisages the promotion of a leaner agri-food manufacturing sector, the provision of direct capital supports for marketing and processing, and support for consolidation in the sector.
While a return to growth in the employment-intensive tourism sector is dependent on a recovery in external markets, the report sees the sector growing in viability through the reduction of costs.
It envisages the liberalisation of visa restrictions for visitors from overseas markets, the enhancement of quality tourism products, and the increased use of “cultural resources” such as the online census and genealogical records and the National Convention Centre.
Reductions in wages and rent levels will feed into a revival of the retail sector, as will the promotion of tourism.
While a return to pre-crisis levels of employment in the construction industry is not seen as desirable, economic recovery generally will boost activity to above the current level.
MAIN POINTS: COMPETITIVENESS, EMPLOYMENT AND BUSINESS GROWTH
–The Commission on Energy Regulation will press for further efficiencies in the energy sector.
–Major waste infrastructure will continue to be developed primarily by the private sector.
–Government will ensure greater competition in public transport.
–The Office of Public Works will seek to reduce rents by up to 15 per cent.
– State intervention in telecommunications will be used to maximise the rollout of next-generation networks.
–Competition in the professions will be promoted and overseen by an independent figurewhowill report regularly to the Government.
–The minimumwage willcome down by €1to €7.65.
–Welfare reform will reduce disincentives to work.