Bold steps needed as vulnerability laid bare

IN THE post-Brexit era, everything is a contest. As always in business, some will succeed and others may fail. There are two essential components which will determine fates, one is developing the necessary vision to respond to change and the second is the ability to maintain an edge. That is why it is so disappointing to see that Ireland has slipped to 24th place in international competitiveness rankings.

Even before the full force of the cross winds of Brexit bite, our nearest neighbour is already 16 places ahead of us on the influential global index.

A number of factors are cited for our fall down the ladder by the World Economic Forum.

The inadequate supply of infrastructure is a key weakness. The chronic housing shortage, a rents spiral, and roads choked with traffic all make the case. But our tax rates and over-blown government bureaucracy are also cited as areas where we have lost ground.

Given the challenges ahead, we can scarcely afford to be off the pace when it comes to attracting overseas business.

With momentum building in Europe for a single corporation tax, and US President Donald Trump’s championing of ‘America First’ policies, we must respond.

Maintaining a skilled workforce requires education, investment and a climate that fosters innovation and enterprise. The scars of the crash can still be seen on the face of our economy. Under-investment and cuts have created deficits that can not be concealed.

Some bold steps are needed, requiring unpalatable but essential choices. Any sense that ultimately we’ll all be grand if we carry on as we are should be dispelled. In July, we were warned by the National Competitiveness Council’s Peter Clinch that the country’s strong economic performance is masking threats to competitiveness.

Confirmation that we remain vulnerable cannot be shrugged off.