Ireland is a high-cost location in which to do business and those costs are still rising, according to the National Competitiveness Council.
The availability and cost of housing in Ireland receives much attention in its latest report - Cost of Doing Business in Ireland 2016.
"Rising rents and increasing house prices will inevitably impact upon wage demands, increase the cost of living and will damage competitiveness," it says.
The NCC also highlights the cost of business lending in Ireland, with borrowers paying 80% more than the euro zone average.
Chairman of the NCC Professor Peter Clinch said a new government needs to put competitiveness at the heart of a programme for government.
Speaking on RTÉ’s Morning Ireland Prof Clinch said that Ireland's ability to provide the sustained economic growth, jobs, good wages and quality public services depends upon our ability to sell goods abroad, which in turn depends upon competitiveness.
He said that while competitiveness has improved over the last five years by around 20%, there is a major concern that this was a result of the recession forcing down prices in addition to factors such as the low value of the euro.
Prof Clinch said the council has recommended a range of areas that government should focus on - including labour costs, property costs, utilities and general business costs along with investment in infrastructure.
He added that no one wants us to return to the latter years of the boom when wages became unsustainable and do not match productivity.
Meanwhile, Employers’ group Ibec, which is holding its annual conference in Dublin today, has revoiced its concern about cost and particularly wage demands.
Chief Executive Danny McCoy will warn in his keynote address later today that if labour cots spiral, in his words, and Ireland loses its competitive edge "we will pay for it in jobs".
