The chairman of the National Competitiveness Council, William Burgess, has said that there is no room for complacency about Ireland's economic strengths.
He said escalating wages costs, price increases and the shortage of investment in infrastructure, including roads, must be tackled.
He also said that the benefits of the last ten years of economic growth would be put at risk if Ireland's international competitiveness were to slide. Mr Burgess's comments were made in the annual competitiveness report published today by Forfas.
The report highlights major concerns about the level of price and cost increases in the Irish economy. It also focuses on fears about employment costs, weaker productivity levels, and the situation regarding social partnership.
The report also points to economic threats posed by the infrastructural deficit in the Irish economy.
Today's report points to many observations to back up the concerns of the National Competitiveness Council which produced the report. It says Ireland is:
* The fourth most expensive out of 16 countries in terms of office occupation total costs.
* The second highest out of ten countries for average house price inflation since 1980.
* The second most expensive out of eight major economies for industrial electricity charges.
* The seventh most expensive out of 16 countries for telecommunications costs.
* The seventh highest out of 16 countries for wages paid to employees.
* The second highest out of 16 for wage inflation in 2002.
* The second highest for growth in unit wage costs in 2002 and 2003.
On infrastructure the report finds that :* Dublin has the longest delivery times out of eight capital cities surveyed.
* Ireland is 13th out of 16 countries for length of motorway per 1,000 of population.
* Ireland has the highest proportion of goods transported by roads out of ten countries surveyed.
* Is eighth out of ten countries surveyed for rail infrastructure quality.
* Is 15th out of 16 countries for access to broadband telecommunications lines.
The National Competitiveness Council makes a number of recommendations, including:
* The phasing out of cross subsidisation of domestic electricity users by industrial electricity users.
* A national wage deal that ensures wage growth is related to the ability of enterprises to absorb the costs of any wage increases without damaging the competitiveness position of the economy.
* Policies to reduce the rate of other price and cost inflation.
* The re-prioritising of road projects for the final four years of the National Development Plan.
* The building of main inter-urban routes and motorways in their entirety should be prioritised.
* Rigorous cost-benefit analysis exercises and continuous value for money audits should be adopted for all infrastructural projects.
* Key infrastructural projects should be fast tracked through the planning process.
* Planning applications for all strategic infrastructure projects should go directly to An Bord Pleanala and mandatory guidelines for decisions should be given and these target deadlines should be met.
* A special division of the High Court should be formally established to deal with infrastructural and environmental planning appeals.
* Policy issues around infrastructure charges and tolling and the manner by which Public Private Partnership promoters earn remuneration on investment should be clarified.
