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Press release

Government approves response to annual recommendations of the National Competitiveness and Productivity Council

The Cabinet has agreed the government’s response to the National Competitiveness and Productivity Council report, Ireland’s Competitiveness Challenge 2023.

The 2023 Competitiveness Challenge report published in September is the Council’s annual flagship policy report on significant competitiveness issues facing the Irish economy, and recommends policy actions to improve Ireland’s competitive position. The government responds formally to the recommendations each year.

Taoiseach Leo Varadkar said:

“Our advisers on the Council have written a really useful report which looks at the big issues facing Irish people, Irish businesses, and the Irish economy, and what the government can do about it. These include the speed at which we’re building new homes, persuading more people to go on to third level education, getting more green energy from our environment, and how to help businesses to find the staff they need when almost everyone already has a job. Today we’re setting out how we will deal with these big issues as a government.

“Ireland always punches above its weight in the world economy, but we are also vulnerable to big shocks from elsewhere, whether that’s an economic slowdown, climate change, war in Ukraine, or a pandemic. So Ireland needs to be nimble and quick-footed in its response to these major crises. This report from the Council will help us to do that.”

Some of the Actions outlined by the government in response to the council’s recommendations include:

  • initiative by the Competition and Consumer Protection Commission looking at how to increase competition in different sectors of the economy
  • more efficient and certain planning system through enactment of the Planning and Development Bill 2022 and provision of additional resources to An Bord Pleanála and local authorities
  • greater use of Modern Methods of Construction in delivery of Housing for All
  • a National Industrial Strategy for Offshore Wind to be published in first half of 2024
  • stronger pathways from schools into further education and training and apprenticeships
  • updated Pathways to Work Strategy, reflecting current labour market challenges, to be published shortly
  • improvements to the R&D Tax Credit announced in Budget 2024
  • publication of a new Quantum Technologies Strategy
  • review of options for use the National Training Fund surplus during 2024

This year’s Competitiveness Challenge report from the National Competitiveness and Productivity Council is framed by the ongoing inflation and cost of living challenges brought about by developments in global energy markets following the Russian invasion of Ukraine, as well as legacy issues related, amongst others, to COVID-19 and Brexit. In its report the Council identified both immediate competitiveness issues for consideration by Government, as well as four medium-term strategic challenges to Ireland’s competitiveness and productivity performance.

These four medium-term strategic areas are to:

  • reduce the cost of doing business in Ireland
  • significantly improve the planning, development and delivery of infrastructure
  • accelerate progress on the usage and generation of energy in line with our climate targets
  • enable stronger productivity growth through research, development, and innovation

In total a set of 19 actions were highlighted by the Council.

Please read the government’s response to the NCPC report attached.

NCPC Challenge Response 2023
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