The National Competitiveness Council (NCC) has called on the Government to take urgent action to support businesses and job creation.
At the publication of a report on Ireland's competitiveness, NCC chairman Don Thornhill said competitiveness has improved during 2009, but cautioned it was mainly due to the recession.
He said improving export performance and raising productivity were the only sustainable strategies to reduce unemployment and secure economic propsperity in the long-term.
"Urgent action is required to ensure a competitive operating environment for business and to enable exporters to trade successfully in difficult international markets. Improving our export performance and raising productivity across all areas of the economy - including locally and internationally trading sectors and the public services - are the only sustainable strategies for securing long term prosperity and reducing unemployment," he said.
"Ireland can have a bright future provided we confront the challenges we face and exploit the opportunities for creating a more competitive economy," he said.
The report, Ireland's Competitiveness Challenge – Creating a Better Future, makes a number of recommendations to help address national issues, such as unemployment, reducing the cost of doing business, prioritising investment in infrastructure and ensuring credit is available to viable businesses.
It said a strong emphasis on skills development is critical to support the competitiveness of existing firms and keep unemployed workers close to the labour market.
Among its recommendation are: targeting education and training funding to address future skills needs in important exporting sectors; funding for training workers particualrly those in low productivity or vulnerable sectors; and more diverse labour market interventions that are appropriate to the current newly unemployed, including the nature and quality of the available retraining options.
The report also recommended driving competition in locally traded sectors of the economy, particualrly among professions, where the State could use its purchasing power to put pressure on professional fees; changes tot he tax treatment of property to limit any future property boom and bust cycles; and action on high utility costs.
The NCC said it supports the broadening of the tax base as a means to stabilise the public finances, ahead of measures such as higher taxes. It also welcomed the proposals to introduce a property tax and water charges for domestic users.
