POLICIES that improve the competitiveness of Irish firms must remain at the top of the Government's agenda if the recent success in terms of job creation is to be maintained, Forfa's has warned.
In its end-of-year statement, Forfas chief executive Mr John Travers stressed that these policies must be developed within a continued commitment to reducing the cost base facing the traded sector of the economy, improving efficiency in the non-traded sectors and supporting firms in adapting to new technologies and business trends.
Improvements in Ireland's competitiveness across a range of areas had played a large part in securing the buoyant economy and generating significant increases in employment and living standards, he said.
"What is critical now is that we use the current strong state of the economy to boost Ireland's competitiveness and future growth potential," Mr Travers said.
Forfas, the umbrella body for IDA Ireland and Forbairt, estimates that full-time employment rose by 12,100 in companies supported by the
State agencies this year.
An additional 20,700 first-time jobs were created, making it the second record year on the employment front. And, while employment grew strongly, the cost to the State per job dropped from £11,100 in 1995 to £10,900 this year.
According to Forfas, manufacturing and internationally-traded services companies spent more than £19 billion in the Irish economy over the last 12 months, an increase of £2.1 billion on 1994. Irish industry spent an additional £400 million on in-house research and development programmes.
"The most encouraging aspect of the Irish economy's recent strong growth record has been the fact that it has been achieved without giving rise to widespread inflationary pressures" Mr Travers said.
But he stated that any lapse in the management of the economy must be avoided by ruling out actions which translate into "unproductive public spending, higher inflation, wage increases or dividend payments that undermine the competitiveness and growth prospects of firms