15th April 2025
The Minister for Enterprise, Tourism and Employment, Peter Burke today announced government approval to accelerate the development of a new whole-of-government Action Plan on Competitiveness and Productivity, alongside a suite of immediate measures designed to bolster business resilience and support competitiveness.
We are living in a time of significant global change, marked by growing geopolitical tensions, trade uncertainties, and persistent cost pressures affecting businesses both large and small. While Ireland continues to perform strongly in international competitiveness rankings, we cannot be complacent. To safeguard our economic future and support our enterprises, we must act decisively on the domestic factors we can influence.
Therefore, the government has today agreed to fast-track the creation of a vital Action Plan on Competitiveness and Productivity, aiming to produce a draft within 12 weeks for discussion at a Ministerial Summit in July. This plan will identify concrete, actionable reforms across government to enhance our competitive edge.
As part of this plan, we are implementing a range of immediate, targeted measures by May 2025. These actions focus on key areas including enhancing international trade promotion supports for firms facing disruption, addressing business costs through regulatory adjustments and targeted initiatives, and improving energy security and infrastructure delivery.
I remain committed to the introduction of the Living Wage, and to fair wages for all workers. Government has approved substantial increases in the minimum wage, particularly over the last couple of years. The National Minimum Wage increased by €1.40 per hour in 2024, and by 80 cents per hour in January of this year. These uplifts have seen real increases in lower paid workers’ wages, exceeding inflation and wage growth across the economy.
I want to make sure that any further increases in the National Minimum Wage are managed in a sustainable way, and in a way that does not threaten employment or competitiveness. I will make sure we find a balance between a fair and sustainable rate for low paid workers, and one that will not have significant negative consequences for employers and competitiveness.
Government recognises the important work of the independent Low Pay Commission, and I look forward to receiving their recommendations for the 2026 National Minimum Wage later this year
These combined efforts – the accelerated long-term plan and the immediate support measures – demonstrate our commitment to proactively managing challenges and maintaining Ireland as an attractive and competitive location for business.”
Minister of State with responsibility for Small Business and Retail, Alan Dillon said:
“Small businesses are the backbone of our economy and a vital source of jobs and innovation in every town and community across Ireland. In today’s complex global environment, it's more important than ever that we provide them with the tools and support they need to thrive. The measures announced today — from enhanced trade supports to tackling the cost of doing business reflect a strong, targeted response to the real challenges entrepreneurs and retailers are facing on the ground.
The establishment of a dedicated Small Business Unit and the creation of the Cost of Business Advisory Forum, will ensure the voice of small business is heard clearly in shaping future policy. As we fast-track the Action Plan on Competitiveness and Productivity, I am committed to making sure small firms are not only protected but empowered to grow, create jobs, and continue contributing to a vibrant, resilient economy.”
Also welcoming the announcement, Minister Smyth - Minister of State for Trade Promotion, Artificial Intelligence and Digital Transformation commented:
The rapidly evolving international economic landscape underscores the critical role of competitiveness in fostering sustainable growth within an open economy like ours. The upcoming Action Plan on Competitiveness and Productivity reflects the government's recognition of the need to address these challenges and its commitment to creating tangible growth opportunities for enterprises in Ireland.
Ahead of the action plan, the introduction of short-term measures demonstrates the government's readiness to respond swiftly to emerging developments. I particularly welcome the initiatives aimed at bolstering Ireland's international trade promotion. Diversifying our trade relationships will be essential to maintaining Ireland's competitiveness on the global stage.
Background
The government's focus on competitiveness comes amid a changing international context and heightened EU attention on bolstering Europe's economic dynamism, as highlighted in recent reports and the European Commission’s ‘Competitiveness Compass’. While Ireland benefits from a skilled workforce and success in attracting high-value FDI, challenges remain, notably in infrastructure capacity and the high cost of doing business compared to competitor nations.
The Programme for Government mandated the development of the Action Plan on Competitiveness and Productivity, intended to cover areas critical to Ireland’s economic performance including industrial policy, regulatory burden reduction, infrastructure, energy, trade, and innovation. By expediting this Plan, the government aims to align key decisions with the upcoming budgetary process, enabling swift implementation. The approach will be evidence-based, involving consultation across government departments and with stakeholders.
In addition to accelerating the action plan, the government has approved the following high-level short-term measures for implementation by May 2025:
Enhancing International Trade Promotion: Actions will focus on implementing enhanced advisory supports for exporters facing disruption, accelerating progress on key international trade agreements like CETA, developing a strategic approach to market diversification, streamlining security clearance processes for exporters, and bringing forward a National Semiconductor Strategy.
Addressing Business Costs: Measures include adjusting the implementation timeline for the Living Wage to 2029 but the government remains committed to the introduction of a Living Wage during its term. Decisions on youth sub-minimum wage rates will be deferred, and further changes to statutory sick pay paused. A new Cost of Business Advisory Forum will be established, we will proceed with omnibus changes to simplify the CSRD regulations, a Small Business Unit will be created, and competition and consumer protection enforcement strengthened.
Improving Energy Infrastructure: Steps will be taken to provide policy certainty regarding data centres, publish plans for connecting large energy users to the grid, foster collaboration between government and industry on offshore renewable energy development, accelerate the deployment of critical electricity grid infrastructure, and explore options for development routes to market for zones B, C and D in South Coast DMAP to provide pathway for future offshore wind energy to meet growing electricity demand.
ENDS
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