Utility Costs Reduce Competitiveness

Utilities account for nine per cent of the total costs of doing business in Ireland according to figures released by the National Competitiveness Council.

The report shows that electricity costs are only marginally lower than the highest cost location in Europe - Copenhagen - and are a significant factor in weakening competitiveness.

In relation to communication, Ireland is significantly more expensive than many other cities. The cost of broadband is expensive when compared to the EU and US cities.

According to Liz McManus, Labour spokesperson on Communications, Energy and Natural Resources, the figures undermine the Government’s claims of focusing on developing a market in electricity and telecommunications in order to encourage competitiveness.

"Instead," Ms McManus claimed, "our high utility costs persist while in particular, broadband provision remains lamentably deficient".

Recent statistics from the Organisation for Economic Co-operation and Development (OECD) placed Ireland third from the bottom on a league table showing average advertised maximum speeds in member states, with only Mexico and Turkey having slower services than those available in Ireland.

Yesterday, however, Communications Minister Eamon Ryan announced a new advisory body set up to look at improving Ireland's broadband infrastructure.

He said: "I have established the International Advisory Forum to advise on next challenge ahead – how we can get higher speed broadband at lower costs.

"Ireland needs a high-end, knowledge driven economy with a responsive, cutting edge telecommunications infrastructure."

The Minister added. "Next Generation Broadband is central to our economic performance".

(VB)