The Taoiseach has welcomed an OECD report which urges the Government to step up its programme of deregulation and privatisation.
Bertie Ahern said regulatory reform was a clear way of sustaining strong economic growth into the future, and would help deliver better government.
The OECD report, released this morning, says the current Irish regulatory environment is improving but does not yet meet the needs of a modern, dynamic economy. It makes a number of recommendations, including the completion of the privatisation agenda.
The OECD also says the most effective regulatory frameworks may extend beyond the State's borders into Northern Ireland and Britain, arguing that all-island regulatory coordination could have significant financial benefits.
On telecommunications, the report says the Irish market is on a par with many OECD countries, but says price rebalancing and local loop unbundling should be completed rapidly.
In relation to electricity, the OECD says the ESB should be prohibited from adding further to its generating plants, and should be forced to dispose of some of its generation plants. It says the electricity regulator should take responsibility for regulating transmission access for gas.
In response, the ESB issued a statement this afternoon which said it noted the findings of the OECD report. The ESB pointed out that it is voluntarily reducing its share of the electricity market by 40% as part of the move to open the Irish market to competition.
The ESB statement while this take place, it is critical from the point of view of power supplies that the new plants such as the Ringsend Synergen plant, the Viridian Huntstown plant and the Dungarvan power plant are put in place.
The OECD also says restrictions governing the operation of pharmacies should be eliminated. The body says some local Government services, at the moment inefficient and fragmented, should be put out to public tender.
The organisation has praised recent decisions to allow more competition in relation to taxis and pubs.
The employers' organisation IBEC welcomed the report, pointing to the recommendations on planning bottlenecks and competition policy as those which should be implemented immediately.
But IBEC said it did not agree with the proposal to abolish the Groceries Order, which bans below cost selling, and rejected the OECD's argument that should maintain the current level of advertising.
* The National Competitiveness Council, which was set up to advise the Government on competitiveness, also welcomed the OECD report, and said it would be studying the recommendations and considering their implementation.
